Nearly a quarter of construction workers are older than age 55, signaling an imminent wave of retirements that could leave the industry facing a critical labor shortage. As seasoned professionals exit the workforce, the challenge of replacing them with younger, skilled workers becomes increasingly urgent. However, attracting and retaining the next generation of construction talent is a complex challenge due to the industry’s struggle to appeal to younger workers.
To fill the growing talent gap and ensure long-term sustainability in an evolving market, construction companies must rethink their workforce strategies. Embracing innovation, flexibility and a commitment to employee learning and development will be key to successfully navigating this transition.
The growing talent gap in construction
The construction industry has long been aware of the aging workforce issue, but the problem has continued to escalate. The retirement of experienced workers is exacerbating an already significant talent gap, leaving construction companies scrambling to find replacements.
This shortage is compounded by the reluctance of younger workers to enter the field, driven by perceptions of the industry as physically demanding, lacking in technological innovation and offering limited career advancement opportunities.
Traditional recruiting tactics are no longer effective in today’s competitive job market. Younger generations, particularly those who are tech-savvy, seek careers that offer a blend of innovation, flexibility and growth potential—qualities not typically associated with the construction industry. The sector’s high turnover rates also strain recruiting efforts, as companies must constantly hire to maintain workforce numbers amid ongoing project demands.
The geographic reach and location of construction projects further compound recruiting challenges. Skilled tradespeople are often reluctant to relocate or travel long distances, preferring to work independently or for larger, more established operators who can offer better compensation and stability.
The specialization required in many construction roles only narrows the pool of available talent, making it even more challenging for companies to find the skilled workers they need.
4 ways to entice younger workers to the construction industry
To bridge the growing talent gap, your company must adopt innovative strategies to engage the next generation of construction workers. This involves rethinking traditional approaches and investing in solutions that align with new expectations and aspirations.
1. Roll out learning and development initiatives
Robust learning and development programs can attract and retain young workers. In fact, learning opportunities are the top way to keep employees engaged at work. For example, strong project management skills are crucial in the construction industry, where effective management ensures that projects are completed on time and on budget, and meet quality standards. These skills foster client trust and lower barriers to entry by making your company more competitive in securing future contracts.
Offering specialized training—whether in project management, specific trades or emerging technologies—can make a big difference to both employees and your business. Young workers are more likely to stay with a company that invests in their skills development and provides clear pathways for career advancement.
By positioning learning and development as a core component of your workforce strategy, you can create a culture of continuous improvement that appeals to ambitious, career-minded individuals.
2. Streamline administrative processes with technology
Younger workers expect efficiency and convenience in every aspect of their jobs, including administrative tasks. You can meet these expectations by leveraging technology to streamline processes such as onboarding, scheduling and time tracking.
For example, invest in digital tools that decrease time-to-hire and time-to-productivity. The construction industry often loses qualified candidates because of lengthy and cumbersome hiring processes. By automating routine tasks and making the onboarding process more efficient, you can speed up time-to-productivity and create a more appealing work environment, especially for digital-native employees.
Technology can also enhance communication and collaboration across project teams, making it easier for workers to stay informed and engaged. Tools that facilitate real-time updates and streamlined communication can improve the employee experience and increase retention rates.
3. Offer competitive compensation and benefits packages
Securing the next generation of construction workers requires offering competitive compensation and benefits packages. While pay is a critical factor, younger workers are increasingly looking for more than just a paycheck. They value benefits that contribute to their overall well-being, such as health insurance, retirement plans and mental health support — which is especially important in the construction industry.
Flexibility is also key to attracting new talent. Offering options that allow workers to choose how and when they receive their earnings can make your company more appealing to younger employees.
4. Create a workplace that resonates across generations
While older generations might prioritize stability and traditional benefits, younger workers are increasingly focused on ethical practices and how their employer demonstrates responsibility and care.
For example, compliance with employment rules and regulations remains a critical aspect of business operations. Non-compliance can lead to significant penalties, such as hefty fines for I-9 verification violations which can reach over $2,700 per offense, and severely tarnish a company’s reputation. However, beyond avoiding these legal pitfalls, there’s a deeper need to show that your company genuinely cares about its people and operates with integrity.
Younger generations want to work for organizations that align with their values, so it’s important to create a workplace that feels safe, supportive and forward-thinking. This means you need to go beyond mere compliance and intentionally integrate care into every aspect of the employee experience.
Building tomorrow’s construction workforce
As the construction industry braces for a wave of retirements and an expanding talent gap, companies must take action to recruit and retain skilled workers.
By prioritizing learning and development, investing in innovative technology and offering flexible, competitive benefits, your company can position itself as a leader in the industry, attracting the talent needed to navigate the challenges ahead and ensure long-term success.
Opal Wagnac, Senior VP of Market & Product Strategy at isolved, is a seasoned technologist with more than 20 years of experience in developing software solutions. In addition, Wagnac serves as a coach and mentor.
