Construction labor shortages are making it difficult for subcontractors to find workers—especially those who are well-trained and in-demand. According to the Home Builder Institute Construction Labor Market Report, 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:
1. Strategize and plan ahead
2. Get help with your hiring process
- Hiring an employment agency to do all the heavy lifting to recruit new staff. This allows for more time to ensure you’re developing your existing staff while potential candidates are appropriately being screened and your hiring process runs smoother.
- Make it known that you are hiring. Try listing open positions on well-known job boards or social media business platforms, like LinkedIn.
- Embrace word-of-mouth: let your staff know you’re hiring, and offer financial incentives for employees who bring in successful candidates.
3. Offer competitive wages and benefits
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.
4. Make sure your subcontractors are “up to speed”
5. Partner with other businesses
6. Be the best place to work
- Establish sick leave and vacation benefits.
- Provide discounts or complimentary services for employees and their families (e.g., restaurant vouchers, gas cards).
- Make your construction site an enjoyable place to work. Try organizing company events that foster collaboration, boost morale, and build relationships.
- Offer flexible schedules. People are more motivated and can be more productive if they have a say in a weekly routine in which schedule and project timelines often change.
7. Embrace construction technology
There are many different types of tech tools available that improve your work management processes. 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.
8. Embrace AI
- Improve safety: Monitor many aspects of a construction project using AI systems equipped with sensors, including safety. This means the software can analyze the risks and warn against potential dangers and hazards.
- Reduce waste and rework, and prevent cost overruns: AI helps subcontractors intelligently predict supply and demand, as well as provide more accurate estimates.
- Maintain schedules: AI and automation do the heavy lifting when it comes to managing tasks, scheduling, and deadlines.
- Stay within budget and prevent cost overruns.
How eSUB can help
eSUB’s cloud-based project management solution 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.