3. How to attract and retain qualified workers in the construction industry

3.1 Introduction

The construction industry in Sri Lanka is facing a significant challenge in finding and retaining qualified workers. The labor shortage in the industry has been caused by several factors, including the lack of investment in vocational education and training, an aging workforce, and low wages. Attracting and retaining qualified workers is critical for the industry's success and growth. In this article, we will discuss some strategies that construction firms can implement to attract and retain qualified workers.

3.1.1 Offer Competitive Salaries and Benefits

In today’s highly competitive job market, offering a competitive salary package is crucial for attracting and retaining top talent. According to the Randstad Employer Brand Research, employees have ranked competitive salaries as the top factor when considering new job options. To stay ahead of the competition, employers need to evaluate their current compensation packages and determine how they compare to those of their competitors.

However, the COVID-19 pandemic has had a significant impact on salaries across industries and regions. Despite the current economic uncertainty, employers must still consider increasing salaries to remain competitive in the market. In fact, increasing salaries can lead to cost savings in the long run, as it reduces turnover rates and overtime costs.

Conducting market research is crucial for determining the optimal salary range for each position. If your company has not conducted market research recently, now is the time to do so. Randstad can provide valuable insights and data to help your company determine the right salary range for each position.

In addition to competitive salaries, today’s employees also want reliable healthcare benefits for themselves and their families. Offering telehealth and mental health services is also important to today’s workers. Providing safe working conditions is another key factor for attracting and retaining top talent. While job site safety has always been a concern, candidates now also want to work for companies that take COVID-19 seriously by providing appropriate personal protective equipment, clear screening and testing procedures, and extra precautions such as handwashing stations and physical distancing when possible.

By offering competitive compensation packages, reliable healthcare benefits, and safe working conditions, employers can attract and retain top talent, even in today’s highly competitive job market.

3.1.2 Provide a Safe Working Environment

The construction industry is known for its hazardous working environment, which can make it challenging to attract and retain workers. Providing a safe working environment is crucial for attracting and retaining workers. Construction firms should ensure that they comply with safety regulations and provide workers with personal protective equipment (PPE). Additionally, firms should invest in training programs to educate workers on safety procedures.

3.1.3 Understand the Shift in Employees' Expectations 

Construction employers can enhance their hiring results by understanding the evolving needs and expectations of today's candidates. The pandemic has altered the candidate landscape, and the labor shortage has created a highly competitive job market. As such, employers must find ways to meet employee expectations in terms of work-life balance, job security, and career advancement. 

Work-life balance has become a crucial concern for employees, and candidates seek flexibility even in the construction industry. While remote work options are limited to off-site workers, employers can offer alternatives such as staggered work schedules, part-time work options, and additional paid time off to help workers achieve work-life balance. 

Job security has become a top priority for workers after facing reduced hours, layoffs, and terminations during the pandemic. Employers should offer transparency to both current workers and prospective candidates to show the stability of the company, as the construction industry outlook is positive, and it is expected to grow in the upcoming years.

Career advancement is also a significant factor that candidates consider when applying for a job. However, not all companies provide a clear and visible career development program, which may deter candidates from applying. Therefore, companies should establish a comprehensive career development program, such as a mentorship or apprenticeship that is applicable to all levels within the company. 

Additionally, employers should market the company's training program to both current and prospective employees through various channels, including newsletters, employee portals, job postings, and social media. Finally, using employee testimonials to discuss training opportunities within the company can help to showcase the value of the program to prospective candidates. 

3.1.4 Build a strong employer brand

The construction industry has been struggling with a negative image for years, and it is taking a toll on the recruitment of young talent. According to recent surveys conducted in the United States and the United Kingdom, only a small percentage of young adults expressed an interest in pursuing a career in construction. Therefore, it is crucial for construction companies worldwide to focus on building a strong employer brand to change the perceptions of potential employees.

One of the first steps in building an employer brand is to assess the current state of your company's image as an employer. Even if your organization does not have an employer branding strategy in place, it has a reputation as an employer based on the feedback of current and former employees online. Hence, it is essential to conduct exit interviews, employee surveys, and interviews with key players to get an honest review of how potential employees perceive your company as an employer.

Once you have identified the strength and weaknesses of your current employer brand, it's time to develop your employer value proposition (EVP). An EVP conveys what employees can expect from an employer and what is expected of them in return, which can differentiate your company as an employer from competitors. It can also be a powerful tool in the recruitment process, serving as the basis for all employer branding strategies, and ensuring consistency.

Employee engagement is another essential factor in building a strong employer brand. According to recent research, employee engagement can improve absenteeism, turnover rates, safety violations, quality, and ultimately, profits. Starting employee engagement during the recruitment process is crucial. Modern HR technology can help automate recruitment tasks, streamline the hiring process, and provide a better candidate experience. Workforce management solutions can also help to enhance employee engagement by facilitating communication between management and employees.

To sum up, the construction industry needs to revamp its employer brand to attract more young talent. It can start by assessing the current state of its employer brand, developing an EVP, and focusing on employee engagement. By taking these steps, construction companies can change the negative image and attract more young people to pursue a career in construction.

3.1.5 Narrow the skills gap

The construction industry has long been plagued by a shortage of skilled workers, a problem that has been exacerbated by the pandemic. As demand in the industry is expected to rise in the coming years, construction companies must take proactive steps to bridge this skills gap.

The first step is to conduct a thorough skills assessment to determine the specific skill sets needed for each position in the company. This information can then be used to update job descriptions and create detailed job postings that include relevant keywords.

However, simply hiring qualified workers may not be enough to address the skills shortage. Construction companies must also invest in upskilling and reskilling programs to bring the necessary skills into the workplace. Upskilling enables workers to advance their careers within the company, while reskilling ensures workers obtain the skills needed to remain relevant in their current or future roles.

To attract and retain construction workers, it's essential for companies to focus on their employer brand, develop a unique EVP, prioritize employee engagement, and provide opportunities for professional development. By following these tips, construction companies can strengthen their workforce and bridge the skills gap, setting themselves up for success in the years to come.

3.1.6 Leverage Technology Solutions

Technology can play a critical role in attracting and retaining workers in the construction industry. Construction firms can leverage technology solutions to streamline recruitment processes and provide workers with access to information and resources. For example, firms can use online job portals and mobile applications to reach a wider pool of candidates and automate HR processes such as onboarding, training, and performance management.

3.1.7 Emphasize Company Culture

Creating a positive company culture is crucial for attracting and retaining workers. Workers are more likely to stay with a firm that values their contributions, fosters teamwork, and provides opportunities for growth. Construction firms should emphasize their company culture in recruitment efforts and promote a positive work environment. This can be achieved by recognizing workers' achievements, encouraging open communication, and providing opportunities for team building.

3.2 Conclusions

In conclusion, attracting and retaining qualified workers in the construction industry in Sri Lanka is a significant challenge. However, by implementing these strategies, construction firms can improve their chances of attracting and retaining qualified workers. Offering competitive salaries and benefits, providing a safe working environment, investing in training and development programs, leveraging technology solutions, and emphasizing company culture are all effective ways to attract and retain workers in the construction industry.

3.3 References

Comments

  1. Chamath MalindaMay 1, 2023 at 7:31 AM

    This comment has been removed by the author.

    ReplyDelete
  2. Nibodi WickramasingheMay 2, 2023 at 3:45 AM

    Hi Asitha, This blog is very detailed and attractive. As a suggestion
    create a formal mentorship program is another way to retain skilled workers.
    The construction labor shortage has created an industry that is quite competitive when it comes to acquiring skilled workers. If the company does not provide opportunities for career growth, employees will look for greener pastures elsewhere. This is why it is important that companies invest in their own employees and create a path for advancement within the organization. High turnover directly affects the bottom line, and in an industry where cash flow challenges and payment issues abound, retaining skilled and experienced workers is paramount.

    One of the best ways to achieve this is through a mentorship program. A good mentoring program serves as a platform for knowledge transfer from veteran workers to new employees. Mentorship programs benefit both the teacher and the student. While mentees gain new knowledge and build their network, mentors gain insights on fresh perspectives new employees may have. In addition, the personal relationship between mentors and mentees can last until retirement and contributes to creating a workforce that trusts one another.

    ReplyDelete
    Replies
    1. Asith PushpakumaraMay 2, 2023 at 5:25 AM

      I completely agree with your suggestion to create a formal mentorship program in the construction industry to retain skilled workers. The labor shortage in the industry has made it extremely competitive to attract and retain skilled workers. Investing in employees and providing opportunities for career growth is key to retaining skilled workers and maintaining a stable workforce.
      A mentorship program can be an effective way to transfer knowledge and skills from experienced workers to new employees. It benefits both parties by providing an opportunity for the mentor to gain new insights and perspectives while the mentee learns from someone with years of experience. The personal relationship between the mentor and mentee can also help build trust and camaraderie within the workforce.
      In an industry where turnover can have a significant impact on the bottom line, it is important for companies to consider implementing mentorship programs and investing in their employees to retain skilled workers. Thanks for sharing your valuable insight!

      Delete
  3. Uchitha SilanMay 2, 2023 at 8:39 AM

    Important article Asith, Having an attractive workplace culture benefits the hiring process. New employees are more likely to stay if the environment is welcoming rather than being “just a place for a job.” So focusing on creating a positive culture cannot be overemphasized.

    ReplyDelete
    Replies
    1. Asith PushpakumaraMay 7, 2023 at 7:40 AM

      Totally agree with you Uchitha, Thank you for your valuable ideas

      Delete
  4. Yasara SarathchandraMay 2, 2023 at 10:23 AM

    Very detailed post Asith,really a field like construction it is not easy to attract and retain qualified workers as it is very competitive.Competitive salary scales and safety work places with good culture,space for career growth will always attract employees without any hesitation.

    ReplyDelete
    Replies
    1. Asith PushpakumaraMay 7, 2023 at 7:42 AM

      Thank you Yasara. Highly appreciated you comments on this article.

      Delete

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