The complaints regarding worker shortages are showing no signs of slowing down within the construction industry. Even top companies in major cities are talking about how they are unable to hire as many people as they would like. While they are able to get a decent crew for part-time and daily positions, they are not getting the full time workers they want. And it is an issue that many in the construction industry believe will threaten to limit the growth they can achieve.
But why is it happening? Who is at fault? And how can it be resolved? Here is our assessment of the three most pressing question regarding the worker shortage in the construction industry.
Worker Shortage – Why is it Occuring?
The truth is that while the unemployment rate continues to decline in the United States, companies in many industries will have a hard time luring workers for specific positions. And it appears that asphalt paving contractors in [city] and other construction companies are getting hurt the most. They are not able to hire the full time and high end employees they need to fill certain positions.
Most statistics show that while hiring is up in the construction industry, the increase is not as much as you would expect. It means that complaints from many companies are true. They are putting out positions in the open job market, but they are not getting as many responses as they would like. And the people who may want those jobs do not have the necessary experience or qualifications.
Who is At Fault for the Worker Shortage?
While it is impossible to put the blame solely on a single side, it does appear that construction companies only have themselves to blame. Sure, some of the reasons for the worker shortage include people wanting jobs that are a bit more comfortable. Some may not be willing to spend their days out on a construction site.
But the biggest reason that we get from different surveys is the lack of compensation. Many workers felt they were not getting a good enough salary when they were fulfilling certain positions at construction company. When a driveway pavement contractor in [city] hires someone part time, they understand the wage will be close to minimum wage. But when you are trying to fill full time positions that require prior skills, the wages should be a lot higher. But they are not.
What is the Solution?
There is a simple solution to the issue of a worker shortage in the construction industry. It is simple supply and demand. If a company is putting out a product and not enough people are buying, they will lower the price.
In the job market, if you are putting out feelers for a job, but you are not hearing from the right candidates, you may want to look at the salary being offered. Instead of complaining about people not being willing to work in construction anymore, companies may want to increase the total compensation package and benefits.
We believe that many construction companies, especially in and near bigger cities, will be surprised at how many more people apply for their open jobs if they increase the salary by 15 or 20 percent. Yes, it means a greater overhead. But the benefits of having those employees in place would be greater than an increase in salaries paid.