For the first time in over a decade, a skilled labor shortage is slowing job creation, causing pains in growing industries like industrial construction. The reduced workforce is a result of several factors, including layoffs and boomer generation workers retiring from long-held skilled positions. Today's contractors and project managers face a new workforce challenge: The expanding industry is creating a high demand for skilled workers, but finding qualified people to fill the jobs is a challenge. According to the U.S. Chamber of Commerce, 60 percent of contractors reported difficulty finding skilled workers due to an ongoing skilled labor shortage. Furthermore, according to a survey conducted by the Associated General Contractors of America, 70 percent believe finding and retaining workers will be as difficult or more difficult in the future.
Top companies are responding proactively with solutions to engage and retain a new generation of skilled construction workers. As the next major workforce, comprising 26 percent of the total population, Generation Z is on recruiters' radars. Unlike millennials, Zs are anxious to pursue independence early, and experts predict more teens between ages 16 and 18 will bypass the traditional route of a four-year degree program and go straight into the workforce. They are skilled multi-taskers who find on-the-job training appealing, making careers in trades like construction ideal for this cohort.
Gen Z is beginning to enter the workforce, and industry leaders are working to recruit Gen Z talent and close the skilled labor gap through smart recruiting strategies, improved onboarding practices and training programs that fit the market.
Agile, adaptable recruiting strategies are more important than ever. Many high school programs and technical schools that helped prepare previous generations for skilled trades no longer exist. Industry professionals are successfully cultivating relationships with local high schools or twoyear college programs with offers of accredited assistantship programs to engage Gen Z prospects. Technology is another useful and adaptable recruiting tool for reaching tech-savvy Generation Z. While professional sites like LinkedIn are mainstays for most recruiters, major companies are using Snapchat to get in front of future new hires. Technology changes constantly, and recruiters must be agile and adapt quickly to changing trends. To gain the attention of skilled labor talent, the most successful recruiters effectively market job incentives and perks that speak most to Gen Z's desire for hands-on learning, career advancement and independence. These include on-the-job training, travel opportunities, and competitive pay and benefits.
When it comes to reducing turnover and retaining highly skilled workers, developing and administering a thorough onboarding plan are critical. Onboarding is an open avenue for genuine conversations and interactions with new hires. Gen Z is very receptive to this type of setting, and it gives leadership and lead trainers the perfect opportunity to introduce the company culture. The industry is also beginning to recognize the importance of adding soft skills training to onboarding programs. In today's competitive marketplace, professional workers focused on good customer service give any contractor a leading edge.
Leaders are also responding to Gen Z's desire to learn and advance, with comprehensive training and certification programs addressing different skill levels with clearly defined job advancement options. Mentoring and on-the-job learning opportunities allow energetic Gen Z-ers to learn the ropes quickly and progress. In-house training for advanced certifications in heavy equipment operations can be stepping stones in a career path plan.
Closing the labor gap is essential for sustaining industry-wide growth. Hope lies in Generation Z -- the largest generation to enter the workforce. The challenge for companies is finding ways to reach them, and adapting recruiting, training and retention strategies toward the newest generation of skilled labor is more important than ever.
For more information, call Andre Pinto at (901) 356-1352 or email him at andre@mahaffeyusa.com.