Effective hiring strategies reduce turnover, address labor shortages, and build a resilient construction workforce
Initially submitted by Sandra Mason, Association of Equipment Manufacturers and CONEXPO-CON/AGG
edited by Exhibit City News Staff
Hiring and retaining skilled construction workers is a key focus but remains a challenge for employers. Turnover rates are high, job seekers expect more, labor shortages persist, and employers struggle to meet project deadlines with a weakened workforce.
Organizational development veteran Dr. Larry Kokkelenberg has over 40 years of experience in workforce efforts. He has trained more than 200,000 leaders, authored two books, and witnessed the costly impact of hiring mistakes. At the award-winning CONEXPO-CON/AGG tradeshow in 2023, he shared insights to attract talent and build a resilient workforce. These strategies are available in a free downloadable e-book from CONEXPO-CON/AGG.
The Cost of the Wrong Hire
Recruiting the wrong person for a skilled role can lead to high turnover, training costs, and project delays. Dr. Kokkelenberg emphasizes that effective hiring begins by identifying the traits of successful employees to create a framework for selecting candidates.
This approach, detailed in the e-book Hiring and Retaining Good Employees, helps companies find individuals with technical skills, safety competencies, and a team-oriented mindset. Hiring the right people reduces turnover and fosters referral programs where 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,” said Dr. Kokkelenberg.
Leveraging Outreach and Training
Proactive outreach is critical to finding qualified talent. Initiatives like summer internships, partnerships with community colleges, and programs like the Department of Defense SkillBridge for transitioning service members help build talent pipelines. Digital platforms, local job fairs, and community partnerships also play a role.
Labor shortages persist. According to the U.S. Bureau of Labor Statistics, in September 2024, the construction industry had 288,000 open positions, and 94 percent of respondents in an AGC Workforce Survey reported openings for skilled labor—a 9 percent increase from 2023.
“It’s hard to get the exact experience you want today,” Dr. Kokkelenberg said. “Organizations must invest in training after hiring the right person.”
In response to shortages, 42 percent of AGC survey respondents increased spending on training and development, while 61 percent raised pay rates for skilled labor. Still, 62 percent noted that available labor lacked the qualifications needed to fill roles.
Employee Retention Starts with Employer Accountability
Retention is a shared responsibility. 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,” Dr. Kokkelenberg said.
Training that demonstrates an employer’s investment in workers beyond basic requirements also fosters loyalty. “Training should show employees they are part of the company’s future,” he added.
Continuous Recruitment: A Strategy for Stability
Dr. Kokkelenberg advises companies to maintain ongoing recruitment to address unexpected turnover. “Even when all your crews are together, you’re still looking for good people,” he said.
Addressing pay scales, work environments, and advancement opportunities minimizes turnover and builds workforce stability.
Labor shortages remain a pressing issue, but as outlined in 4 Steps To Hiring and Retaining Good Employees, the right strategies—from effective interviews to strong onboarding—can create a workforce that meets today’s demands and drives long-term success.
