Arcoro Partnered with Associated General Contractors of America for Annual Workforce Survey: Here’s Our Take
Arcoro partnered with the Associated General Contractors of America to conduct an annual workforce survey revealing that nearly 95% of construction contractors struggle to fill positions, with over 54% citing talent shortages causing project delays, while despite these challenges, more than 65% plan to increase headcount and are adopting new recruitment tactics, yet only about 20% utilize HR technology like Applicant Tracking Systems, contributing to high turnover rates where over half of new hires quit quickly or fail to show up, highlighting opportunities for improved hiring and onboarding processes through better HR tech adoption.
Every day Arcoro supports the needs of the construction industry with HR solutions that help companies hire, manage, and grow their workforces. As a result, Arcoro is aware of the issues the industry faces and works with customers to help solve those challenges.
Partnering with AGC
Arcoro partnered with the Associated General Contractors of America (AGC) for their annual workforce survey to gauge how contractors see and address their most pressing people concerns.
An Industry Looking for a Lot of Good Recruits
The survey results show that almost all contractors continue to find it difficult to fill open positions, with just under 95% reporting challenges in finding employees.
Over 54% of firms say that lack of talent is contributing to project delays, impacting company bottom lines and the industry's ability to bid on and complete work, especially as more federal infrastructure projects come online.
Despite hiring challenges, over 65% of firms expect to increase headcount in the coming year. Companies are turning to new tactics and techniques, such as online social media strategies to target younger workers and engaging with career-building programs, to find talent.
HR Tech is Being Underutilized
HR technology adoption remains an opportunity for companies to streamline recruiting and hiring. Only about 20% of contractors have implemented software like an Applicant Tracking System to automate job distribution and hiring processes.
A notable statistic from the report is that over 50% of respondents indicate their new hires either quit very quickly or don’t show up for work at all. This high turnover is costly, as the process of finding and onboarding new employees must be repeated frequently.
Possible reasons for no-shows and high turnover include poor hiring decisions, poor onboarding, and competition for workers. HR technology can help companies be more efficient and impactful with workforce activities, including streamlining hiring and onboarding processes to provide a better candidate experience and showcase company culture.
Companies Are Focusing on Training Employees
Companies are taking positive steps in training and upskilling workers. Training is both a productivity and retention tool. 42% of firms are increasing or initiating spending on training and development, with this number rising to over 50% for larger firms with more than $500 million in annual revenue.
Just over a quarter of all firms have increased their focus on online training, which can help proliferate learning. As more young people enter the industry, career planning and clear advancement paths can help increase retention rates and provide an edge in recruiting.
However, just under 38% indicate they haven’t made any changes to their training program, possibly due to a lack of resources—both human and technological—to focus on training and other recruiting and retention strategies.
Some Companies Aren’t Leveraging HR Expertise
Overall, 22% of respondents indicate they don’t employ HR staff, meaning workforce challenges are being addressed by employees with other primary responsibilities. This could contribute to high turnover rates, as half of the companies surveyed say new hires aren’t showing up or are quitting quickly.
For larger companies (over $500 million in annual revenue), this number drops to 38.27%. For firms with revenue less than $50 million, it’s 52.27%. About 85% of firms over $500 million employ HR staff, compared to around 70% of firms with less than $50 million in revenue.
Even when HR staff are present, they often spend significant time on manual administrative tasks, limiting their capacity to focus on recruiting, company culture, and retention, which can lead to costly turnover.
The Winning Combination
The data shows an industry working hard to bring in new talent, trying new techniques, tactics, and technology, but not always combining these efforts with the professional focus necessary to maximize their investment. Firms with both HR staff and HR technology may be best positioned to hire, manage, and grow valuable talent.
Related
Top 5 HR Challenges in Construction: What Keeps HR Leaders Up at Night
A survey of 300 HR professionals in small to mid-sized U.S. construction companies reveals the top five HR challenges—finding and hiring the right candidates (65%), performance reviews (22%), time and attendance tracking (22%), onboarding new employees (21%), and tracking certifications and compliance (21%)—with workforce shortages driving hiring difficulties and HR technology like Applicant Tracking Systems offering solutions to streamline recruitment and alleviate these persistent industry pain points.
Top 5 HR Challenges in Construction and How HR Tech Helps Solve Them
A survey of 300 small and mid-sized US construction companies revealed the top five HR challenges—finding and hiring candidates, performance reviews, time and attendance tracking, onboarding, and tracking certifications—which can be effectively addressed using HR technology tools like Applicant Tracking Systems, performance management software, and automated time tracking to streamline hiring, enhance employee engagement, and improve compliance.
Should You Be Recruiting Internally?
The article advocates for internal recruitment as a strategic, cost-effective approach to building a winning team by leveraging existing employees' talents, reducing risks and expenses associated with external hiring, and enhancing employer branding through employee engagement and development.
Construction HR Software Onboarding | Arcoro
The article discusses how construction HR software addresses the industry's unique onboarding challenges—such as a diverse workforce, dispersed job sites, high turnover, safety regulations, and compliance complexities—by streamlining processes to enhance productivity, safety, retention, and company culture from the first day on the job.
Construction Software Integration Solutions: Unifying Workforce Management
Construction software integration solutions unify disconnected HR and workforce management systems in the construction industry, addressing challenges like complex time tracking, compliance risks, and inefficient data handling by automating processes, improving visibility, and ensuring regulatory compliance to enhance overall productivity and project management.
Arcoro’s Insights: Looking Back on 2024 - Arcoro
In 2024, Arcoro leveraged its deep expertise in construction HR to provide industry-specific insights and solutions—highlighted in various publications by experts like Carrie Gardenhire and Samantha Stephenson—that addressed workforce challenges such as labor shortages, talent pipeline development through student internships, and increasing female recruitment, ultimately helping construction companies become more strategic, compliant, and better equipped to handle hiring and operational demands amid record job openings.