Tips for Dealing With the Labor Shortage

The labor shortage is one of the biggest challenges that contractors are facing today—and it is not just a labor shortage, but a shortage of skilled labor. This problem can result in having to turn down work, postponing projects, challenges in completing projects, overworked employees, quality control issues, and increased costs for the company.

According to the 2020 Construction Outlook Survey by the Associated General Contractors of America (AGC):

• 81% of construction firms have trouble filling both salaried and hourly craft positions
• 72% anticipate labor shortages to be the biggest hurdle in the next year

When asked what the biggest concern is for 2020, the top three responses are:

• Worker quality, 75%
• Worker shortage, 72%
• Rising direct labor cost, 57%

Below are 10 tips to consider when facing a labor shortage.

1. Invest in technology. Adopting or increasing your investment in technology, tools, and equipment to save labor hours is always worth considering. Depending on one’s scope, this could include battery-operated tools, power screeds for concrete, lifts for overhead work, GPS or laser-guided equipment, drones, and robots. 
2. Review methods. Using the principles of lean construction can help maximize efficiency and minimize waste and time delays. More developers and builders are turning to off-site fabrication. Virtual construction, such as BIM (building information modeling), is saving time for everyone involved in the process.
3. Improve company culture. Competitive pay is not the only reason people want to work for a company. Highlighting a work-life balance, benefits, and other opportunities will bring added value to the company-employee relationship. Consider using social media to showcase why tradespeople should want to work for your company.
4. Communicate effectively. Overcoming any language barriers and communicating effectively with all employees can help open up opportunities. Some of my greatest employees were Hispanic and having management that could communicate well with them was very effective for enhancing the working relationship.
5. Overcome stereotypes. More women are strapping on tool belts, operating equipment, managing job sites, and owning construction businesses than ever before. The industry has made strides in expanding employment for women, with associations such as Women in Construction helping to drive the change.  
6. Consider apprenticeships. Presenting apprenticeship opportunities to high school graduates and local trade schools can work well, providing temporary help and sometimes leading to full-time employment if the person’s character traits and skills work well with the crew. This also gives you the opportunity to develop the employee around your company’s values. Reaching out to schools and presenting opportunities about what your company has to offer may be time well spent.
7. Offer referral bonuses. Compensating employees for referrals can be a great way to find applicants. Employees may know other tradespeople from past jobs or someone with good work ethics who wants to start a career in construction. Offering creative incentives to employees may result in qualified candidates.
8. Advertise clearly. How you post a job position is very important. The more accurate you describe the position, the more likely you are to get the right candidate. Clearly describe the job, what it is like to work at your company, your preferences, and minimum requirements for the position. 
9. Invest in your employees. In these times, it is more important than ever to invest in your current employees. Many construction companies are working diligently to recruit skilled talent, but they sometimes overlook working to keep their current employees. Make sure your employees feel appreciated, know they are an important part of the company, and receive competitive benefits and salary.
10. Network. Networking with industry associations and others in construction can help get the word out that you are hiring. Some of my best employees were those who had been in business for themselves at one time or another. They know what it takes to run an operation and are familiar with the behind-the-scenes work that no one sees. When an employee has walked in the owner's shoes, there can be a connection. Temp agencies are also an option, but I would use them in construction only when necessary.