A few statistics for your executive team to consider in a tight labor market

The construction industry is one of the fastest growing industries there is, highlighted by the fact that there were 210,000 new jobs added throughout 2017, a 35% increase over the previous year. This means that the demand for talent in the industry has seen an increase with it. In fact, according to the Bureau of Labor Statistics, the hiring of construction managers is expected to grow faster than that of any other occupation.

With such a high demand for talented workers within the construction industry, competition is likely to become fiercer when it comes to attracting those people into your business. Experts at GetApp, a marketplace for business applications, recently put together a useful guide for hiring businesses, outlining some of the most useful numbers they need to know in order to attract talent to their business.

The infographic below highlights some of the main stats and figures that employing managers must know in order to remain competitive in a construction job market where supply and demand is likely to change dramatically in the coming years.


 

 

 

From the infographic, we can see there are several factors that are sure to make a big difference when looking to hire the right people. Here are two big insights that can be pulled from the figures.

1. Increasing Competition

As previously mentioned, the last few years have seen the construction industry show dramatic growth, and this trend is expected to continue. By 2026, it's projected that construction managers will see a further 11% growth, which includes 7 million new roles and 2.1 million project management roles. This increased growth of employment in construction means that the talent pool is likely to get smaller, making it harder for recruiting businesses to attract the right talent.

 

When it comes to the most significant factors shaping the business goals of construction businesses, the top factor was the availability of skilled workers. This was a factor that 46% of businesses agreed was significant in them hitting their goals. Considering the demand for workers will only increase in the coming years, it can be deduced that businesses will need to work hard to beat this increased competition for workers.

2. Salary Expectations

With increased competition for jobs, there’s likely to be a knock-on effect when it comes to the salary expectations of job seekers. This means that hiring managers must consider both the current average salaries for the roles they’re filling and the future prospects in any role they are offering, helping them remain competitive in the job market. The current annual median salary for a project manager working in construction is $100,000, with those working in manufacturing earning an average of $108,500.

For employers, offering potential employees a clear route of progression once they are in their role is another key factor. Fifty-three percent of project managers say their organization has an informal career path that connects them to roles in upper management, and 40% say their set of performance skills is clearly defined in writing. These two factors will be vital when it comes to offering employees more than just money in their role, providing them with clear goals to accomplish and potential for progression.

The Next Steps

For those looking to employ in the construction industry, the next steps listed below are vital in order to stay in the best position for hiring the best possible talent. GetApp has put together a checklist for hiring managers, offering advice for choosing the right people and how to ascertain what they’re worth before heading to the negotiating table. Here are some of the steps that you should remember:

  1. Finding and training a replacement member of staff can cost a business 6 to 9 months of an employee’s salary. this makes it vital to ensure you are following the right process and making the right hires for your business. Getting it wrong can mean starting this whole process again.
  2. The best job prospects belong to those with a bachelor’s degree in construction science, construction management or civil engineering. However, you should be aware that this means you’ll likely be paying the average salary, which surpasses six figures.
  3. Emphasizing your company’s commitment to training and promoting employees can be a huge selling point for your business. Remember that potential employees are looking for much more than just the size of their pay—progression and training are key factors.

Using the statistics provided in the infographic and some of the tips for hiring managers, your business can help ensure that it stays competitive in the job market as times change. Making sure you have the right hires in your construction management roles will allow your business flourish along with the industry, attracting and retaining more talented people and ultimately leading to business success.