Construction labor shortages are making it difficult for subcontractors to find workers—especially those who are well-trained and in-demand. According to the , the construction industry needs over 2 million more workers over the next three years to keep up with the booming demand for new houses amid construction labor shortages.
Subcontractors need to be proactive to mitigate the risks associated with construction labor shortages. Here are some tips:
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One of the biggest causes for a shrinking labor pool is excessive competition. Therefore, consider what you can do differently or improve to stand out to attract and build the best staff possible. When competing with more established companies, it might be worth the research into their go-to tactics to up your game.
We all know that hiring is time-consuming and can be a challenge. For a smoother hiring process, consider:
Benefits packages are one of the most important aspects employees consider when choosing a company to work for, and also determine whether workers will stay. By providing good health insurance, paid time off, competitive wages, and financial assistance to further education, people will be more inclined to take notice of what embodies your business culture. Make sure these benefits stand out.
In certain areas, there are construction labor shortages in qualified skilled tradesmen due to the high demand for workers. In addition to offering higher benefits, offer more incentives such as flexible hours to get people through the door.
Some trade schools now offer classes in construction technologies. These programs can help new workers tap into various jobs on larger projects by providing training (e.g., software design, power tools, and automated equipment).
While these courses often require a high level of commitment, the skills learned can improve productivity while boosting their career and job satisfaction. It also means you have a highly specialized workforce.
.Speaking of schools—consider reaching out to the next generation of subcontractors by attending career fairs or contacting schools to offer presentations to their students.
Business environments are becoming more and more competitive. This means that collaborating with other businesses may be a good strategy, and sometimes necessary. Subcontractors can come together and sign contracts with businesses, for example, if one contractor needs more workers and another has space in their schedule—helping both parties out. Also, consider offering good compensation to borrow workers with specific skills from other companies.
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There are ways to create an appealing work environment:
As the construction industry becomes more tech-focused, companies are constantly developing new ways to improve processes and make life easier for their project teams.
There are many different types of tech tools available that improve your . These tools can help you keep track of employees� time off requests, shift trades, availability changes, and much more. These systems can also integrate with payroll software so you know employees� hours worked per pay period, overtime requirements, etc.
Artificial Intelligence is the future of the construction industry. AI can be used to increase productivity and reduce costs, and help transform how you manage your projects.
Moreover, consider how AI can facilitate better communication between tradesmen onsite, allowing teams to easily share information about materials and tasks that need completing on schedule.
’s construction management platform helps subcontractors maintain and manage a fully functional team between field and HQ, improving collaboration, productivity, and saving costs.
’s was designed specifically for construction subcontractors, giving them a real-time view and account of their workers, enabling efficient work management within an easy-to-use platform.
If you would like to improve your management processes so you don’t experience construction labor shortages, schedule a demo to learn how eSUB can help.
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