The construction industry is facing one of the biggest labor shortages since the Great Recession. An additional 650,000 workers are required to balance the labor demand curve. Contractors are facing huge losses in the form of project delays.
Outsourcing additional labor is also sacrificing profit margins. Contractors are actively looking for remedies to work around the labor shortage. Discussed below are some of the most effective strategies that can be used to minimize the impact of this acute labor shortage in the construction industry.
Retaining the Existing Workforce
The best thing you can do in a labor shortage is to retain your existing workforce. Losing your skilled labor to competitors can have devastating effects on your business. Retaining employees is also a lot cheaper and more effective than acquiring new ones. A stable workforce also builds the credibility of contractors. This strong credibility then helps in attracting and acquiring new workers.
The best way to retain your workforce is by taking care of them. Personally knowing the workers creates an atmosphere of trust. This also ensures effective communication which enhances overall productivity and efficiency. A better-engaged workforce produces the best quality of work.
Another way of retaining your workers is by paying them more. A labor crisis indicates a higher demand for workers. In order to meet this demand, competitors will try to acquire your workers by paying them more. The best thing you can do to retain them is by paying them handsomely.
Introducing Training and Development Programs
Training and development programs can be used to not only enhance the skill level of your existing workers but also to attract new workers. Attracting new individuals and training them to be skilled workers can prove to be highly beneficial in this uncertain labor market. These programs should be more focused on training new individuals.
After completing their training programs, paid internships should be offered to these new workers. This will significantly increase the chances of retaining them. These internships will also allow contractors to see how these new students will perform in the real environment.
Providing Incentives
Incentives can be in the form of both monetary and non-monetary benefits. Monetary benefits include project-based bonuses, appraisals, rewards, and so on. Insurance plans, medical benefits, and gym memberships can also be used to incentivize workers. Non-monetary benefits can be in the form of awards. Acknowledging their accomplishments also goes a long way.
Addressing Safety Concerns
Safety concerns are a major reason why construction workers are switching industries. The construction industry is infamous for fatal accidents which creates a sense of fear for new entrants. Contractors should implement strict measures to minimize accidents and ensure worker safety. Before looking for heavy equipment for sale, train your operators properly so there are no accidents. Successfully communicating low injury rates can help attract more young people to the industry. Minimal injury rates also represent that the firms take care of their employees.
Educating Youth About a Career Path as a Construction Worker
A good way to attract more youth is by educating them about their career paths as construction workers. Highlighting the multi-functional roles of construction workers can also spark their interest in the field. The goal is to help young people see how they can have a successful career in the construction industry. Pointing out the growing demand and high salaries for skilled construction workers can also motivate them to join the construction sector.
Conclusion
A labor shortage has always been a problem in the construction industry, but recent events like the Great Recession and COVID have multiplied its impact. This has seriously affected construction firms and contractors in completing projects. In order to stay in business and remain profitable, contractors and firms should start adopting measures to cope with this labor crisis. The focus should be on adopting long-term strategies that will help in attracting and retaining more workers in the construction sector.