Hiring in a Competitive Construction Market
Hiring in a Competitive Construction Market
2022 was an outstanding year for much of the commercial construction market. Low interest rates early in the year, coupled with rising rent prices and continued demand for distribution centers, technology and research facilities, and a boom in multifamily construction drove a high amount of activity, despite complications in supply chains and soaring labor costs. As we continue in 2023, rising interest rates, a possible recession, and a continued labor shortage will be huge factors to consider. According to the Associated General Contractors of America, despite the current market uncertainty, contractors surveyed are “optimistic about the construction outlook for 2023, yet they are expecting very different market conditions…” Additionally, two-thirds of the contractors that AGC surveyed said they are adding to their headcount in 2023, and 80% said that they are still having trouble with recruiting and retaining talent.
With so much competition trying to hire the same individuals, it is now more important than ever to have a strong employer brand and effective recruiting strategy. Here are a few things that you can do to stand out:
1. Establish a strong culture via a defined core values system and clearly stated objectives for your organization. By defining and leaning hard into organizational values and long-term goals, you can ensure that everyone on the team is bought in and pulling in the same direction.
2. Invest in employee growth and well-being. When you care for your team, they care for your business. Give them opportunities to learn, grow professionally, and take breaks when needed. Ensure adequate support is provided that will allow them to succeed on their projects. When employees are happy and feel supported, they become champions for the company.
3. Create a strong employer brand by showcasing not just your portfolio, but by showing off your culture. Give your current employees a platform to tell their experience, why they love what they do, and why they are on your team.
4. Streamline your interview process to be expedient and efficient. If someone is interviewing with your company, a quick process keeps them engaged, lowers the chances of another company winning them over, and makes them feel like their time is respected.
5. Offer a comprehensive and competitive compensation package. Sure, you don’t want someone who is just after a dollar, but make sure that you are giving a strong offer to help win them over.
To continue to win in a market where profits are harder and harder to achieve, taking care of your proven performers will help you continue to deliver high-quality projects and earn good margins, and create a cohesive team that draws talent in like a magnet!
AGC Outlooks: