When it comes to attracting and retaining employees, the construction industry is years behind equivalent sectors like manufacturing. Without the introduction of attractive benefit schemes and a clear career development pathway, construction businesses continue to see some of the highest employee turnover rates in the US.
However, by adopting just a few changes to how they approach employee management, construction leaders can transform their firm into a desirable home for long-term retention.
With this in mind, let’s take a closer look at why the construction industry is lagging behind when it comes to attracting and retaining skilled workers and what construction leaders can do to change the narrative.
Why is The Construction Sector Lagging Behind?
The construction industry is constantly under constraints from increasing labor demands and a rapidly aging workforce.
Over 30% of the workforce is 50 years or older, with more than 40% of the labor force planning to retire by 2031.
As a sector struggling to retain its employees long-term, the construction industry is currently facing a mass labor shortage.
Attracting skilled workers is a true task for construction companies, especially as the industry itself still suffers from an image problem. Younger generations perceive the construction industry as a male-dominated, non-innovative sector that offers poor pay and little opportunity for growth.
Don’t forget that Gen Z and Millennial workers are also digital natives. With such little coverage of the construction industry on platforms such as TikTok and within modern media, it’s no surprise that younger workers are less attracted to labor-based roles.
If construction bosses hope to encourage younger, skilled workers to join their workforce, significant changes must be made. The industry must learn how to talk to Gen Z, create attractive opportunities for growth, and rebrand classic stigmas pushing young workers away.
How to Attract and Retain Skilled Workers as a Construction Business
There are plenty of ways to attract and retain skilled workers in a construction business. The key here is to offer your employees constant opportunities, support, and benefits that encourage long-term loyalty.
From career development and mentorship to promoting employee wellbeing, here are some easy, low-cost strategies for a more attractive workplace.
Invest in Career Development and Mentorship
Skilled workers are driven by opportunities to develop their careers and refine their abilities. Creating a robust career path for skilled workers is a brilliant way to take advantage of an employee’s desire to keep learning and provide guidance as they shape their future within your company.
When onboarding new employees, assign them a skilled mentor who thrives in their favorite field of work. Creating structured training programs and providing mentorship from day one encourages a skilled worker to grow and develop within your organization and move up through the ranks of the labor force.
With a strong career path in sight, employees are less likely to resign prematurely, instead dedicating themselves to the company long term.
Keep Upskilling Your Workforce
The construction industry is constantly evolving. More businesses than ever before in the sector are adopting AI and automation to enhance project efficiency and maximize productivity.
From BIM to CAD to AI-powered ERP systems, there is plenty of tech to play with as a contractor in 2025.
Upskilling your current workforce and offering skilled apprentices the chance to train on these technologies is a great way to maintain a powerful workforce and offer skilled workers the chance to develop their abilities in-house.
Promote Employee Wellbeing
According to the Centers for Disease Prevention, construction occupations have the highest rate of suicide.
In order to attract and retain your workforce, it’s imperative that their wellbeing is taken into account.
Construction companies should offer employees peer-to-peer support, frequent feedback, and dedicated teams to manage staff wellbeing.
Managing construction workforce wellbeing has never been easier with the introduction of employee management software. With the ability to simplify leave tracking, integrate benefits management, and centralize all incident and accident reporting, HR teams can support their employees 24/7.
The key here is to offer your employees a space to seek support. Whether this is an integrated system or a physical location where they can speak to one another, a company that prioritizes wellbeing is a green flag for younger workers.
Promote Equity, Inclusion and Diversity (EDI)
Breaking down barriers to equity, diversity, and inclusion is essential if you want an attractive company dynamic.
In 2025, just 14% of those working in the construction sector are women,with less than 4% working on-site.
With a ‘macho’ identity, the construction industry is undoubtedly a male-dominated sector. In order to attract skilled workers from all backgrounds, it’s important to create a more inclusive working environment.
Diversity should sit at the heart of a recruitment drive. In order to attract and retain workers, ensure that your company has role models to demonstrate career potential, motivate current workers to embrace an inclusive workplace culture, and promote your business as an EDI-friendly environment.
Rebranding the Industry
The construction industry must undergo a giant rebrand if it wants to establish itself as an attractive sector for skilled workers.
Skilled workers thrive in a diverse, opportunity-filled environment. Promote your business as a place to build a skilled career and offer employees benefits for staying in their role long term.
Factors such as employee well-being, development opportunities, and an inclusive culture all drive retention in the workplace.
In today’s competitive market, prioritizing employee well-being and a clear path for development won’t just fill your roles, they’ll build a loyal, skilled workforce that drives long-term success.
