There’s a big problem in the construction industry: too few skilled workers to fill all the jobs available. The pandemic led to a 14.5% loss in construction employment between February and April of 2020. This skilled labor shortage can make it difficult to hit end dates, make errors likely to occur, and cost more money. It’s like building a huge sandcastle with insufficient workers; you can still achieve it, but it will take a longer time and maybe not even as planned. Let’s see the problems this shortage causes and how to solve them.
The Challenges Posed by the Skilled Labor Shortage
The construction industry relies on skilled workers like carpenters, electricians, and plumbers. The problem is that there aren’t enough of them at present. Most aging workers have retired, and not enough young people have joined the industry to replace them. This creates a vicious cycle wherein companies compete for fewer workers, driving up costs and making it harder to hire experienced teams.
Projects would be slower due to a lack of skilled labor available. In fact, one of the primary reasons companies miss deadlines or go over budget is that they sometimes have to pay for temporary workers or merely must keep their permanent ones happy with higher wages.
Effects of Labor Shortages on Construction Oversight
Whenever skilled labor is scarce, construction project management runs into a long list of problems. Here’s how labor shortages impact construction projects:
- Reduced Quality Control: It’s much more difficult to maintain rigorous standards when everyone isn’t as skilled as they should be. Mistakes slip in with greater ease and can wind up causing problems somewhere down the line.
- Increased Supervisor Workload: Supervisors and managers have to oversee larger areas or more tasks. Less attention to detail and missed issues can result in these circumstances.
- Project Delays: When tasks are understaffed or lack expertise, projects may become slower, thus missing deadlines, impacting the other phases of construction.
- Higher Safety Risks: Appropriate oversight is necessary to keep work sites safe. Labor shortages create a challenge in enforcing the implementation of safety rules with regard to adherence, thus exposing the site to higher risks in case of accidents.
- Communication Challenges: With reduced numbers and higher workloads, communication is affected. Misunderstandings and missed messages lead to mistakes and inefficiencies.
- Difficulty in Meeting Project Standards: The lack of available workers is likely to make it challenging to meet the set standards for an original project, and this may eventually affect client satisfaction as well as the completion of a project.
Controlling Construction Labor Costs in a Tight Market
Managing construction labor costs during a labor shortage is difficult, but there are ways to handle it. One effective approach is using technology to boost efficiency. Tools like construction management software help track worker productivity, plan schedules better, and reduce wasted time, allowing companies to get more done with fewer workers.
You may also use investment in training that can help in cost management by teaching the current workforce new skills. This way, you don’t have to hire other people for the gaps. For instance, a general laborer can be trained on specialized equipment, saving on costs and boosting output. The focus also remains on the retention of the workforce. Offer a fair wage, good benefits, and a positive work environment: retaining your skilled staff may be less costly than recruiting and training new ones.
How to Attract and Retain Skilled Construction Workers
Skilled labor shortage can be addressed by construction companies by attracting new workers and keeping current teams happy. The only way to compete as an employer is by offering them the best pay and benefits. Workers are more likely to stay in companies that offer them fair compensation, health insurance, retirement plans, and paid time off.
A positive work environment also makes up a large part of retention. Employees want to feel appreciated and valued, so the effort to acknowledge their work and provide opportunities for personal development goes a long way. Engaging with schools and training programs can bring in fresh talent. Internships or apprenticeships through local schools, colleges, or trade programs will encourage young people to consider construction careers. Highlight long-term career opportunities within construction. Demonstrate to potential hires the track from entry-level roles to your company’s leadership opportunities, and they will be more likely to consider the industry a viable career path.
Tackling the Skilled Labor Shortage Together
One of the biggest challenges faced by the construction industry is a shortage of skilled labor; however, it’s not impossible to overcome. This is why it’s important to emphasize effective strategies for maintaining construction labor costs. Although there are difficulties, improving the oversight of construction can create a more attractive environment for workers. Because of this, you can keep your projects on track and ensure they are of high quality. Invest in your workforce and build teams with strong values, because this will keep your company competitive and efficient. Although it may take time, the right approach can make a big difference.
What solutions are you applying to the shortage of skilled labor? Let us know in the comments, or share this blog with your team to get ideas on how to tackle this challenge!