November 2013

Business Building

Make People a Priority

By George Hedley

Builders, contractors and subcontractors complain they can’t find enough good trained help. It seems like they continually hope for a miracle, but don’t want to put in the time, energy and resources to build a great place to work that attracts, retains and trains great managers, supervisors and employees. There are great people looking for great jobs. And, if you can’t find them, perhaps they just don’t want to work for your company and what it has to offer.

People want to work, accept responsibility and successfully build their futures. Yet, the construction industry suffers from a 25 percent shortage of new workers entering the workforce every year.

The problem? No one wants to work in construction. No one wants to work in dead-end jobs. No one wants to be treated like a ditch digger and only get paid on the days he works. People want to be treated as valuable team members, trained and have an opportunity to move up.

I speak to the construction industry at major conventions and company meetings on business management and how to make a profit. I ask audiences, “Do any of your kids want to work in construction?” Only one in 100 answers, “Yes.”

With such a low response from the children of people in the industry, it should come as no surprise to you that construction ranks number 248 out of 250 career opportunities among high school seniors.

Why work in construction?

Why would any young person ever want to work in the construction field? It’s cold, hot, dirty and dangerous. Field workers are treated like hired hands and expected to follow orders from above, do only as told, and not make waves. They aren’t invited to company events, allowed to participate in profit sharing, or treated as equals with management or office staff personnel. They are seldomly given authority to make decisions, commit the company to spend money without approval, or asked for their ideas on how to improve field productivity. When it rains, they are sent home without pay or benefits. They receive little or no recognition, and are not involved in project or company planning and scheduling. Great opportunity? Not.

Pay for field construction workers has declined steadily for 10 years (adjusted for inflation and buying power), while most other career choices have experienced a net increase. Construction field workers see a pay potential that plateaus quickly and declines as they get older and less valuable than their younger peers. Great upside potential? Not.

Fortune Magazine’s “Most Admired Companies in America” train their people between 40 and 60 hours per year. The average construction company trains their people between one and three hours per year, per employee. Great training? Not. Why would anyone be surprised that nobody wants a job in an industry that offers hard work, low pay, inadequate training, few personal development opportunities, and little career growth?

What do young people want?

Young people today want responsibility, accountability, growth opportunities, high tech, involvement in decisions, and pay based on performance. They want to understand the big picture at the project and company level. They need frequent recognition, rewards and someone to care about their futures. They want a job that pays a lot more than average with an upside potential. Young people want to make a difference and want to be an involved part of an exciting company that leads the competition. They need a vision of the future and want to contribute to the success of their companies.

All the talk, complaining, programs and money will never get young people to seek work in the construction field until builders, contractors and subcontractors change the way they do business.

What’s the solution?

To attract great people, every construction company, large and small, must commit to creating great places to work. Each manager and supervisor must make recruiting an important part of the job. You need to convince people that your company really does offer a great opportunity, and promise the job will lead to a fantastic career. It takes more than placing a want ad or calling the hall to find and attract great people. It takes dedication, commitment, time, planning, strategy, and money to make it happen. For your copy of the “BIZ-Builder Organization Chart,” email GH@HardhatPresentations.com.

To retain great people, companies must have a proactive and aggressive employee development program – not lip service and idle promises. This includes ongoing training and education, programs in team building, computers, supervision, leadership, as well as technical skills. Also required are employee recognition systems, personal development programs, and pay for performance and actual results. Future growth career ladders must be clear, tracked and updated regularly.

To develop great people requires new management and leadership styles that coach, inspire and encourage people to become the best they can be. This requires letting go and trusting people to take it to the next level. This only happens when managers realize that people are their only competitive advantages. Their output equals your input!

When will you start?

I am continually frustrated as I speak to owners and managers. People learn what to do, but don’t do it. Why? Most business leaders are unwilling to try new ideas. They get used to the way it is, get comfortable in their misery, and stay put complaining about the lack of good people to hire. Waiting and hoping great people show up at your doorstep doesn’t work.

My challenge to you is to change your company culture now. Radical innovation, risk taking, and real leadership are desperately needed by everyone. Only you can return your company to favor with potential workers. Now is the time for every construction company owner, leader, manager and supervisor to focus on the problems that have created this “labor shortage,” by implementing immediate and long-lasting solutions at every level. The only question left is, “When will you start?”