Construction industry challenges in 2023
After the global pandemic, demand for the services of the construction sector has increased significantly. In the first quarter of 2021, the construction industry in the US contributed $684.40 billion. However, human resources administration has been a consistent issue for corporate leaders in this industry.
Here are 5 of the most frequent issues faced by construction company leaders and possible solutions on how to address them in 2023.
1. Recruiting qualified workers
Finding great talent is a challenge that almost every industry faces. The construction industry is just beginning to recover after the pandemic-related uncertainties of the previous two years. There has since been a growing demand for qualified hands in the construction sector.
Construction employment is projected to grow by 4.4% in total from 2020 to 2030. The Bureau of Labour Statistics (BLS) found for construction and extraction occupations that 95% of the employment change from 2020 to 2030 is attributable to pandemic recovery.
Many construction companies are trying to hire more employees to handle this spike in demand. Since all other competitors are vying for skilled workers from the same talent pool, this circumstance presents difficulties for the majority of construction industry executives.
Solution
For the construction industry to thrive over the long term, the recruitment process has to be improved. A strong application pipeline that is kept up-to-date should be considered. The main goal of human resource departments should be to create a network of potential candidates.
Your company’s talent acquisition strategy should take into account a variety of factors. Your company’s recruitment strategy should include evaluating the requirements, foreseeing talent shortages, and adjusting your current staff.
2. The Widening Skills Gap
The proportion of young workers in construction is rapidly decreasing. According to a report by the U.S. Bureau of Labor Statistics, the median age of construction employees increased from 39 to 42.3 years in 2021. The proportion of senior construction employees has increased as fewer young workers enter the industry.
As a result, there’s a “skills” gap between the younger and older generations of construction workers. For instance, there is a lack of individuals with specific crafts, such as metalworkers, in the sector’s metal construction section.
Fewer young people are contemplating professions in the trades due to a long-standing focus on obtaining a college degree. Younger generations frequently prefer ‘new economy’ employment over those in construction because they offer a more diverse work environment. As a result, many millennials are not engaged in the construction industry as their predecessors were.
In addition, many construction companies are adopting technology more quickly, which may put older generations of maintenance engineers at a disadvantage in terms of having the necessary skill sets to use new technologies.
Solution
The management of talent gaps and continued training expenditures are essential for the construction sector’s sustained expansion. This gives workers of all ages the chance to study throughout their careers and develop their abilities. Cross-mentorship programs are beneficial since they enable staff to share important information and expertise.
Take advantage of digital technology to draw in young talent. There’s little doubt that the continued acceptance of modern technology will have an impact on construction. Attracting younger generations now will make this shift easier and ensure the industry’s long-term existence.
3. Ensuring Workers’ Safety
Construction workers’ safety is a constant top priority. According to data from the US Department of Labor, 20% of all worker fatalities occur in the construction industry.
Construction work comes with a significant danger, and workplace injuries might cost businesses a lot of money. This includes the cost of finding and training replacement staff, rising premiums for workers’ compensation insurance, time missed from work while the injured employee recovers, and the possibility of legal action as a result of the incident. Safety must therefore be given high consideration at all construction sites.
Solution
Although eliminating all potential risks to a worker’s health on the project is practically unattainable, construction managers must urgently take all necessary precautions. Every construction company should have reliable safety procedures in place. Additionally, workers using potentially dangerous equipment and materials ought to have undergone the proper training.
In the construction industry, putting a return-to-work program into place is crucial. The program should assist injured workers in returning to work as soon as they are healthy enough. This might lower the price of workers’ compensation insurance, which would be very beneficial financially for the building and construction industry.
4. Compliance With Industry Standards
It can be very difficult to ensure that all industry compliance standards are met. Nearly every aspect of the construction industry is governed by regulations, from the tools and equipment to hiring practices. Owners of construction businesses with HR departments need to make sure that no rules set forth by the Office of Federal Contract Compliance Programs (OFCCP) are broken.
In particular, when it comes to interview procedures, OFCCP auditors are constantly on the watch for incorrect documents. Discriminatory practices should never be used while recruiting, firing, or even promoting a person.
Compliance may be expensive but the consequences of breaking the law may be much more severe. It is also a challenge to maintain payroll for your construction company as overtime and minimum wage laws are constantly evolving. In addition to other labor rules and local requirements that may change frequently, businesses must also take healthcare restrictions into account.
Solution
The foregoing offenses can all be avoided by simply maintaining correct and thorough employment records. Records and data about employees should always be current and accessible. Additionally, regular inspections of internal procedures can help identify areas that require improvement.
5. Managing Professional Development and Certifications
Keeping track of your employees’ qualifications is another challenge that you could face as human resource personnel in the construction industry. This may be difficult but is still a necessary strategy as it enables you to enhance the skill set and daily productivity of your business while increasing employee engagement.
Managing the certificates of each of your employees individually without centralizing and dematerializing your information makes the process even more tedious.
Solution
Consider automating the management of certificates. Incorporate features like automated reminders to update you when a certificate expires or is about to expire. Your certificate management system should also let you plan certificate renewals and avoid oversights and delays in your management.
Conclusion
The administration of talent acquisition requires a lot of time and effort. Human resource managers are compelled to use unsatisfactory and often even counterproductive hiring techniques because they are unable to keep up with the processes.
Your construction company can maneuver these challenges by working with a reliable recruiting firm like Trade Link Solutions. Our adaptable and feature-rich platform is useful for managing all openings within your firm to bring in the best talents to your construction company. Contact us today for all your hiring services.
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