Attracting the right candidates

Hiring and retaining good construction employees and finding skilled, reliable workers is an important focus but also a real challenge for employers. Turnover rates remain high, job seekers have increased expectations, labor shortages persist and employers feel pressured to meet project deadlines with a weakened workforce.

Organizational development veteran Larry Kokkelenberg has more than 40 years of experience coordinating workforce efforts with employers, training more than 200,000 leaders, authoring two books and witnessing firsthand the costly consequences of hiring mistakes.

With the labor shortage and workforce challenges at the forefront of issues for the construction industry, Kokkelenberg presented a session on the importance of recruiting and retaining high-quality workers at ConExpo-Con/Agg 2023, sharing insights and strategies to attract top talent and build a resilient workforce.

The cost of the wrong hire

Recruiting the wrong person for a skilled construction role can bring long-term challenges, including high turnover, increased training costs and project delays. Kokkelenberg said effective hiring starts with identifying the traits and habits of successful employees to create a framework for interviewing and selecting ideal candidates.

This backward approach to recruitment, outlined in Kokkelenberg’s free online e-book “Hiring and Retaining Good Employees” helps companies attract individuals with the right technical skills, safety competencies and a mindset for teamwork. When companies hire the right people, they reduce turnover and foster programs where existing employees recommend candidates from their networks.

“When employees communicate to their friends and family about good pay, great management and growth opportunities, they help develop referral programs,” Kokkelenberg said. “This method of getting the word out to local candidates is particularly useful and fills open employment opportunities with quality candidates.”

Leveraging outreach and training

Kokkelenberg stressed the importance of proactive outreach to find qualified talent. Initiatives such as summer internships, partnerships with community colleges, soliciting the U.S. Department of Labor and working with the Department of Defense SkillBridge Program for transitioning service members help employers build pipelines of skilled workers. Digital platforms, local job fairs and community partnerships also play a role.

However, the construction industry saw extraordinary labor shortages throughout 2024. According to U.S. Bureau of Labor Statistics, in September 2024, the unemployment rate was 3.7 percent and the construction industry had about 288,000 open positions.

In a recent Workforce Survey Analysis by the Associated General Contractors of America (AGC), Arlington, Virgina, 94 percent of respondents reported having openings for skilled labor positions in the construction industry, a 9 percentage point increase from 2023.

“It’s hard to get the exact experience you want today,” Kokkelenberg said. “More organizations will need to invest in training once they hire the right person.”

Further, the AGC survey noted 42 percent of respondents increased spending on training and development, while 61 percent reported increased pay rates for hourly skilled labor just within the last year.

Retention starts with employer accountability

Once the right people are hired, retention becomes a shared responsibility. Kokkelenberg argued that salaries, work-life balance, job security and leadership opportunities are critical to keeping employees engaged.

“If employees see no growth opportunities or feel undervalued, they’ll look elsewhere,” he said.

Retention also requires investment in training that goes beyond basic requirements. Employees who feel valued and see that their employer is invested in their development are more likely to stay.

“Training should show employees they are part of the company’s future,” Kokkelenberg added. “It’s not just about compliance; it’s about demonstrating their worth.”

Continuous recruitment: A strategy for stability

Even with positions filled, to prepare for unexpected turnover Kokkelenberg advised companies to maintain an ongoing recruitment strategy.

“You are hiring and looking for good people all year long,” he said. “Even when all your crews are together, you’re still looking for good people.”

Employers also must address internal factors, such as pay scales, work environments and opportunities for advancement, to minimize turnover and build a stable workforce.

The construction industry’s labor shortage remains a pressing issue, but as outlined in “Hiring and Retaining Good Employees,” the right strategies can make all the difference. From effective interviewing practices to strong onboarding programs, employers can create a workforce that not only meets today’s demands but also drives long-term success.

The Association of Equipment Manufacturers is a trade organization based in Milwaukee, Wisconsin, representing off-road equipment manufacturers, serving more than 1,100 member companies. To learn more, visit www.aem.org.