A recent survey by the NAHB revealed that 69% of its members were experiencing delays in completing projects on time due to a shortage of qualified workers, while other jobs were lost altogether. And the problem isn’t going away anytime soon. In this SBGP Exclusive Strategy-Paper we will explore seven strategies that can help your construction or trade company mitigate the construction labor shortage crisis we are all dealing with right now.
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Schools:
To tackle the difficulty in finding employees, recruit from a local trade school. If your labor is strained, and your team is too busy, create an incentive program for your employees. Meet once a month and outline the local trade schools in your area and create a mutually beneficial incentive plan to reward employees for finding a good candidate.
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Referrals:
When labor is hard to find (like it is now), continue talking to your suppliers and trade partners. Some might need an incentive to hand you good leads, but a good place to start is offering $500-$1,000 for each candidate that stays on staff for 6 months. In a competitive market, you have to stand out. Try not to pull employees from a competitor, but there are always opportunities to find someone who is in-between work in your circles of business where you have good relationships.
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Small businesses:
Another good place to look is craftsmen who have run their own businesses. They may want to simplify their life and just work on one aspect of what they used to do at their company. They make great employees, because they understand the big picture and can anticipate problems. Leverage google to find local craftsman, gather emails, and send an invitation for an interview, outlining the core values of your company.
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Immigrant communities:
An often-underutilized source of labor during these times is the immigrant community. Reach out to local immigrant newspapers and run an advertisement for your construction or trade company in them. Although your construction methods may be different, immigrant workers are ready to learn and can make fantastic employees to fill your labor shortage on short notice.
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Prequalification:
It’s expensive to make a hiring mistake, so build a program to prequalify general laborers. Test framing, drywall, trim, and electrical skills in the shop and include a written portion with questions similar to those on NARI’s CLC and CR exams. It’s important to remember that construction skills aren’t everything, but a prequalification program can save you a lot of headaches when expanding your outreach with these strategies.
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Retain:
It is, of course, imperative that once employees are hired, they stay at the company. The right mix of salary and benefits can facilitate that, as well as a list of non-measurable qualities good employees are looking for. The best employees are looking for a home and a great team; not just a paycheck.
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Redefine:
Besides hiring and retaining good employees, remodelers and the industry as a whole will have to work to change the image of construction professionals and educate today’s youth about career options in residential building and renovation. Demand is high, and so are the salaries, a cultural shift is needed and education on careers in construction is the only way this changes.
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