Feb 08, 2023

Construction Industry: How to Overcome the Skilled Labor Shortage


The number of job openings in 2020 was more than the number of individuals seeking employment. And while practically every industry is trying to fill openings, the construction industry is still struggling to find qualified labor.

A labor shortage can have a wide range of negative consequences for businesses.

It can limit economic revenue, maintain procedure and maintenance, and source at a cheap cost. Furthermore, it may force businesses to hire staff who lack the necessary skills, jeopardizing quality control.

While overcoming the skilled labor shortage is not a simple task, there are ways that organizations may use to recruit personnel.

Investing in Innovative Technology

Making the most of the staff currently on the roster is the most efficient way to overcome the skilled labor shortage in construction. The correct construction software and an integrated automated drone surveying process may drastically improve day-to-day productivity.

The correct construction software improves productivity on job sites by:

  • Improving communication between employees and management.
  • Getting rid of misallocation and, therefore, delay.
  • Increasing the precision of the task being done.
  • Keeping personnel safe while performing potentially hazardous jobs.
  • Developing a tech-savvy culture to attract a newer generation of skilled workers.

Diversifying the Workforce

Women make up only 10% of skilled labor in the construction industry. The labor shortage is the perfect opportunity to normalize the hiring of women in the construction field and bridge the gap.

There are various reasons why there aren’t more women in the construction industry. Gender stereotyping and the notion that women are unsuitable for construction tasks are some of them.

When combined with a scarcity of training, the gap due to gender disparity and a lack of inclusion grows even wider.

The misconception that the construction industry requires more brawn than competence drives women out of the industry. Women, like men, perform very well in industrial occupations if suitable training is offered.

Construction businesses must work to remove gender stereotypes and prejudices in the construction industry and provide training designed especially for women.

Redesigning Recruiting Methods

When talent shortages become a severe issue, it may be time to reconsider how a company might hire new personnel. New employees do not have to be completely trained right away.

This is prevalent in the corporate sector. However, the construction industry can also benefit from it.

Without jeopardizing the company’s reputation, a company may simply hire individuals who meet a majority of the qualifications and assist them in developing into the position.

Post that, a company needs to actively invest in training and upskilling to help these new employees operate efficiently. It opens up the possibility of discovering fantastic, motivated employees and broadening the existing hiring practices.

Enhancing the Working Atmosphere and Offering Positive Affirmation

Construction businesses and contractors must identify their workplace culture and then put their beliefs into action to make construction work more appealing. It is also critical to ensure that prospective workers know the workplace culture.

Companies with strong company culture are always more appealing. They can retain staff even in industries with a high turnover rate. Their patrons like connecting with their employees, who are always eager to educate new hires.

While this might sound like a trait exclusive to corporate, it is equally vital in the construction industry.

Some ways to foster a sense of importance among the employees and positive company culture are:

  • Acknowledging the work done by employees through posts on the company portal, app, or text chain
  • Adequate monetary compensation
  • Sharing customer feedback with employees
  • Allowing employees to express their concerns and take action to address those concerns

Offering Reskilling Provisions

Providing sufficient training for employees is a sure way to keep competent staff. Today’s workers desire opportunities to continue learning and progressing professionally, and firms can keep them motivated by providing training.

Offering training is a major plus since it results in a better-qualified workforce for a company and increased goodwill for this personnel. They feel appreciated due to the money and time invested in them.

Reskilling and training is a future investment that helps retain personnel that has been displaced by organizational changes such as automation and outsourcing.

Instead of sacrificing productive, dedicated employees who are well-versed in their field and the business, adopt a human approach that provides them new skills and assists with redeployment.

Employing Contingent Laborers

Hiring contingent or contractual labor is one of the simplest ways to address a skills shortage. Companies may swiftly and cost-effectively cover significant shortages in their operations by utilizing freelancers, consultants, contractors, and others.

Contingent labor is quickly becoming a popular choice for many businesses. Their knowledge, availability, and flexibility enable them to operate within any schedule, budget, or project constraints.

While this may be an easier way out, it is not a long-term solution. However, a company stands a chance at hiring a highly trained workforce for a limited duration. It ensures high production quality at a much smaller, commitment-free cost.


The construction industry’s skilled labor shortage is a long way from being solved. Individuals today understand their worth and want to be treated and compensated according to it.

This timeframe, therefore, is a chance for companies to reflect upon their existing policies and company culture to implement practical changes.

Employing technology, rethinking recruitment procedures, investing in training, and upskilling are all ways to secure a company’s future. Further, diversifying hiring and including women can help broaden the talent pool and create more opportunities.

Meanwhile, contingent or contract laborers can fill in the gap to avoid any shortcomings in the functioning of the industry.

At the end of the day, filling out the labor shortage will require the human element of respect and dignity, which can only come through a grassroots level rethinking of operations.

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