The construction industry has long struggled with hiring and retaining skilled workers. The root of this problem is not a lack of available workers but our industry’s reputation and appeal. Construction consistently ranks among the least desired industries in America, which begs the question: What would it take for construction to become the industry of choice?
Contractors looking to combat hiring and talent retention woes must rethink their recruiting playbook, ensuring the employee experience matches the customer experience.
This approach informs Frampton Construction’s recruiting strategy, which is why historically so many of the mid-sized firm’s employees have exceeded the average construction industry job tenure (4.2 years, according to the U.S. Bureau of Labor Statistics) and why the firm receives so many applications from highly qualified candidates.
There are numerous actionable ways contractors can collectively change construction’s “undesirable industry” perception. To actively create a fear of missing out, or FOMO, for potential candidates considering a firm for future employment, employers must invest in their human resources (HR) department.
According to the Society for Human Resource Management, the average HR staffing level is approximately one employee per 100 employees. Research also shows that businesses with understaffed HR departments have higher turnover rates than those with adequate staffing levels.
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From an industry perspective, Frampton Construction has over-indexed its HR department with a People and Culture team four times larger than that of comparable mid-sized companies.
“It’s like sending a student to school with a high teacher-to-student ratio,” said Keaton Green, Frampton Construction’s Senior Vice President of Strategy. “You’re going to get a more personalized experience and better outcomes. Our People Team is specifically designed to elevate the employee experience, and we want our people to be better because of their jobs.”
The hiring process is a two-way street. Just as your company is vetting talent, talent is vetting your company. Applicants evaluate your firm throughout the interview process. Reducing your time to hire and time to fill demonstrates operational efficiency and provides a strong first impression.
Time to fill refers to the number of days between opening a position and extending a job offer. High time-to-fill rates can have a significant financial impact, and lost productivity during a vacancy period can set projects back, potentially impacting customer satisfaction and dissuading existing customers from becoming repeat customers.
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Meanwhile, time to hire refers to the time between your company’s first contact with an interested job candidate and when they receive and accept a job offer. The current industry average is 60 days; Frampton Construction’s average is 45 days. Fifteen days may not seem like a big leap, but if your daily lost productivity is considerably higher than the cost of employing someone in a given role, these expenses will cut into your profits.
A lengthy hiring process can also cause candidates to lose interest in a firm or doubt leadership’s competence. Conversely, firms utilizing artificial intelligence, digital platforms, and other systems to reduce vacancies and expedite hiring instill confidence in their capabilities.
The American workforce is becoming increasingly tech-savvy. Companies should follow suit if they wish to appeal to Gen Zers, who are eschewing four-year degrees in favor of nontraditional fields and could fill construction’s labor gap.
Platforms like JazzHR and Breezy HR provide applicant tracking, performance management, and learning management systems that can streamline hiring and operations. Yet many contractors resist adoption for various reasons, including cost and reliance on traditional onboarding methods. Leveraging technology can help company leaders collect the information necessary to reach and hire more talent and make faster, data-driven decisions about their teams.
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AI tools like Fetcher, Humanly, and hireEZ improve recruitment candidate relationship management through automation. By defining hiring criteria within these platforms, you can reduce your HR team’s time reviewing resumes and screening candidates who might not be a good fit. You can also simultaneously post SEO-optimized job descriptions to hundreds of job boards from one platform, casting a wider net into the construction talent pool. Lastly, many of these platforms include reporting capabilities to see who is responding to your job ads. These helpful analytics enable companies to refine their recruiting process and target their ideal candidate.
In addition to AI, contractors can utilize human resource information systems like Namely, BambooHR, and Workday to improve the employee experience. These systems offer simple payroll processing, benefits administration, HR management, employee self-service, and learning management all in one place.
Data warehouses are another valuable tool for centralizing data collection to support HR operations. Similar to the reporting functions of AI HR tools, employees can run queries and generate specialized reports in-house, providing incredibly accurate hiring trend analyses. They can then synthesize the data to visualize gaps and improvement opportunities.
Frampton Construction currently employs a technology and analytics manager who oversees the company’s tech stack to ensure it adequately supports hiring, onboarding, continuous training, and other standard operating procedures.
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Contractors who wish to improve the industry’s appeal should adapt recruitment strategies that cater to generational differences. Partnering with local high schools, trade schools, and community organizations to provide technical training and mentorship for next-generation builders promotes a positive industry image and inspires trade interest.
Another way to reach younger demographics is to produce social media campaigns that appeal to these audiences.
Frampton Construction currently runs targeted social media campaigns advertising its internship program using geofencing — virtual boundaries around geographic areas like university campuses with reputable engineering and construction management programs. This strategy has enabled the firm to recruit top-tier talent for its Foundations Internship Program from Clemson University, University of North Carolina at Charlotte, The Citadel, and more.
According to recent estimates by Associated Builders and Contractors, the construction industry must attract 439,000 new workers in 2025 to keep up with service demands. Contractors can tap into new segments of workers to fill these gaps, but they must first ensure they are giving their employees and job candidates the same level of service they provide their clients.
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| Brandeis Machinery |
While traditional recruiting and hiring practices must evolve for construction to become an industry of choice, attracting good people is only half the battle. The other part involves empowering employees and providing career clarity to build a loyal workforce.
Editor’s Note: Watch for part two of this article with tips for improving morale and employee retention.
Photos courtesy of Frampton Construction.
LV Hanson, SHRM-SCP, ACC, is Senior Vice President of People and Culture at Frampton Construction Company, a full-service firm providing planning and design support, preconstruction, and construction services. Hanson has over a decade of talent management and HR experience. Contact him at lhanson@frampton.construction.
