By Jack Rubinger, writer
People — caring, feeding, nourishing and retaining — are the big story for the construction industry as we head into 2022.
While other industries have done a great job keeping people happy, healthy and in good humor, the construction industry has lagged behind in these skills. Driven by deadlines, increased pressure to come in under budget and concerns about supply costs, construction companies have traditionally focused more on recruiting.
Recruiting is an ongoing cycle. Once you get into it, you never get out of it. You’re always posting ads on Indeed, at unions, on websites and other places. Ads are costly. Responses may be weak and “respondees” may also be less than qualified.
So how do you get out of the recruiting cycle?
The answer is retain vs. recruit.
Joe White, from AEU LEAD had some outstanding insight into the fine art of retention. According to White’s research, Gen Z differs greatly from previous generations. They want instant and ongoing feedback from their supervisors, otherwise they feel unappreciated and they start looking for new opportunities.
“People don’t leave because of the companies,” said White. “They leave because of the supervisors. If supervisors aren’t leading, employees are leaving. In our line of work, we’re now focusing on the Employee Experience. In construction, no one has more impact on the employee’s overall experience than supervisors.”
That experience is multi-faceted. In terms of feedback, for example, preferences vary by generation. White and his team have developed 5 – 8 minute micro-learning modules to help supervisors better understand how and when feedback is preferred. The traditional annual or semi-annual review session, dreaded by so many, won’t work for incoming generations. According to White, “if you don’t provide ongoing real-time feedback, younger employees aren’t going to stick around.”
White also projects a need for greater focus on mental health. “It’s not a matter of ‘if’ your supervisors are going to encounter employees dealing with stress, anxiety or depression – it’s a matter of ‘when’. Often, the answer is nothing more than asking some basic questions: “Is everything okay? Would you like to talk? How can I help?” It’s not about solving employees’ problems. It’s about helping them through rough patches and steering them towards available resources when needed.”
This dramatic shift in thinking and action is shaking up the industry at a time when finding skilled labor and skilled crafts people is getting more and more difficult, but it makes a lot of sense and is more cost-effective than recruiting.
“Beyond basic needs, when employees have a sense of belonging and feel valued and appreciated, they’re far more likely to stay. That’s the key to retaining talent. It’s also the answer to the recruiting problem,” said White. “They’ll talk about how cool their company is and use social media to express themselves.”
White’s company has helped a cross-section of construction companies, including South Bay Sandblasting and Tank Cleaning, Turn Services, Frazier Industrial, Pride Industries, Nugent Sand, and Wallenius Wilhelmsen.
In one case, according to Patrick Dean from Associated Builders and Contractors, of the 280 new hires at one company, 229 were employee referrals.
“The best companies have a handle on the employee value proposition,” he said. “It’s all about creating a culture where people like to work at companies that treat people fairly, promptly, with compassion and understanding and are transparent about opportunities to grow.”
White’s company offers industry resources like blog posts to read and podcasts to check out, because that’s where Gen Z goes to get their information.
Another construction industry challenge that can improve with better communication has to do with supply chain management and the cost of materials, which are sometimes passed on to customers.
Dean has noted that while lumber costs are coming down, “the supply chain is really messed up.” In regards to contracts and escalations he said that those who have contracts signed with rising material prices are in trouble. “It’s not wise to sign contracts without having an escalation clause when material prices are unsettled.”
As far as communication goes, Dean recommends involving supply chain partners early on in the negotiation process and being transparent in goals, intentions and the potential for price increases.
“Everyone benefits from over-communication,” said Dean.
As for the future of the construction industry, things work in cycles. Once one problem is solved, often another pops up. But the “people problem” is really one steeped in practicality.
Treating people well is really nothing new, but it’s got to be practiced, perfected, and performed daily.
