Building a workforce that lasts

By Eric Vittardi, Foundation Software.

Construction’s talent crunch is real — and HR is on the front line.

It’s not just hard hats and heavy machinery that keep construction projects on track — it’s people. And right now, the people are getting harder to find. Across the U.S., the construction industry is grappling with a labor shortage that’s a daily reality. Human resources teams are under pressure to fill roles fast, retain talent longer and rethink how they build a workforce from the ground up. At Foundation Software helping construction companies meet that challenge head-on is a top priority. This isn’t about plugging gaps — it’s about futureproofing an industry that’s quite literally built to last.

Key takeaways for HR managers in the construction industry:

• Recognize the factors contributing to the labor shortage, including an aging workforce, negative perceptions of the industry and competition from other sectors.
• Utilize targeted recruitment, strong employer branding and employee referrals to attract top talent.
• Offer competitive compensation and benefits, invest in career development, foster a positive work environment and promote employee engagement.
• Utilize HR management software like hrHQ to streamline processes, improve efficiency and enhance employee experience.

Understanding the construction labor shortage

Before we dive into solutions, it’s important to understand what’s driving the construction labor shortage.

For starters, many skilled workers are retiring and fewer younger workers are arriving to take their place. The aging construction workforce has created a significant gap, especially as fewer people pursue trades.

Then there’s the perception issue. Construction jobs are often seen as physically demanding, with limited growth potential — an image that doesn’t reflect the reality of many rewarding careers in the industry.

Other industries, like tech and manufacturing, aggressively compete for the same talent pool and offer enticing packages, making it harder for construction companies to stand out.

Additionally, according to a report by the U.S. Bureau of Labor Statistics, the construction industry had a turnover rate of 5.2% in 2024, higher than the national average of 3.7%.

This high turnover rate can make it difficult for construction HR personnel to effectively recruit and retain workers.

Understanding these underlying issues is the first step toward crafting a solid plan to address them.

Effective recruitment strategies for obtaining construction workers

Here are some actionable strategies to help HR professionals in construction overcome the labor shortage.

Targeted recruitment for construction workers

When it comes to finding new construction talent, a one-size-fits-all approach won’t cut it. Instead, ask yourself, who are you targeting:

• Young graduates?
• Veterans?
• People looking to change careers?

Tailor your outreach to these groups by using platforms they frequent, like social media or online job boards.

It’s also worth building relationships with vocational schools and trade unions by offering construction internships or apprenticeships.

These partnerships can connect you with candidates who already have some of the skills you’re looking for or who are eager to learn.

Hosting workshops, job fairs or training programs can establish your construction company as a go-to employer in the field.

Construction employer branding

If you want people to choose your construction company, you need to show them why it’s a great place to work.

This is where employer branding comes in. Highlight what makes your workplace special, whether it’s opportunities for growth, competitive pay or a supportive team environment.

Use your website and social media to share real stories from employees, showcase completed construction projects and give a glimpse into your company culture.

The goal is to make your company a place people are excited to join.

Employee referrals

Your current employees can be some of your best recruiters. They know what it takes to succeed in your construction company and can recommend people who’d be a great fit.

To encourage referrals, consider offering rewards, like bonuses or extra vacation days when someone they refer gets hired.

And don’t forget to recognize employees for their efforts — it helps build a sense of pride and teamwork.

Helpful strategies for retaining construction employees

By implementing these approaches, construction companies can build a sustainable workforce ready to tackle industry challenges.

Competitive compensation and benefits

Once you’ve built a strong team, keeping them happy is key. Competitive pay is a must, but don’t stop there.

Think about benefits like health insurance, retirement plans and performance bonuses.

Flexibility can also go a long way — options like adjustable schedules can make a big difference in work-life balance.

Construction career development opportunities

Employees want to grow and if they can’t see a future at your company, they’ll look elsewhere.

Invest in training programs, offer mentorship opportunities and create clear paths for advancement.

When people know you’re committed to their development, they’re more likely to stick around.

Fostering a positive work environment

People want to work in a place where they feel valued. That starts with open communication.

Regularly check in with employees, celebrate their successes and address any issues quickly.

Even small gestures, like recognizing someone’s hard work in a team meeting, can go a long way in building morale.

Engagement matters

Engaged employees are happy employees — and happy employees are more likely to stay.

Plan team-building activities, social events or even casual get-togethers to strengthen relationships.

Encourage feedback and make employees feel heard; when they know their opinions matter, they’re more likely to be invested in the company’s success.

How construction HR technology simplifies recruitment and retention

<INSERT PHOTO 1>

Managing recruitment and retention in the construction industry can be daunting, especially when you’re juggling multiple projects and teams.

This is where a construction-specific human resources management app can be a game-changer. Automating human resources processes can streamline HR tasks, making it easier to find and keep the right people.

For recruitment, these apps offer ways to simplify new hire onboarding. Instead of shuffling through paper forms and manual data entry, new hires can upload and manage their required documents securely through a centralized platform.

Look for features like digital document sign-off tools that ensure compliance by enabling mobile signatures for policies and forms, while tracking completion.

Many also include features for managing employee referrals, saving you time and ensuring no leads slip through the cracks.

On the retention side, these apps often offer tools like an employee self-service portal that allow construction workers to access their:

• Paystubs
• W-2s
• Benefits information
• Personal data
• PTO
• 401(k) withholdings

By giving employees more control and visibility over their information, you can foster trust and reduce administrative burden.

Additionally, automated payroll and benefits management can help ensure your team feels supported and valued.

By using HR technology, you’re not just keeping up — you’re staying ahead in the competition to build and maintain a strong, satisfied construction workforce.

Original article and photo source: Foundation Software