The Australian Bureau of Statistics this week released data showing detached house approvals increased by 1.4 per cent in the three months to April 2022 to be 16.8 per cent higher than the same three months in 2019, while renovations approvals jumped by 6.6 per cent in April to be up over the last 18 months by 42.6 per cent on pre-pandemic levels.

Labour force shortage and lack of skilled labour present major challenges for long-term economic viability and project performance. Projects facing a shortage of skilled talent generally have a tight schedule to achieve project targets, and shortages in candidates impact affecting time, cost, quality and safety.

The talent shortage is widely recognised as one of the biggest challenges in recruitment right now.

While international borders have reopened and migration has returned to most regions, there is still an overwhelming deficit in construction skills. Several factors are driving skills shortages in the construction industry.

Fewer Jobseekers

Increased demand has undoubtedly played its part as activity outstripped supply following the COVID-19 recession and its resulting redundancies. In addition, socio-cultural trends have been drivers for tightening the labour pool when many workers’ preferences changed during the pandemic. Known as ‘The Great Resignation’ and the ‘Great Retirement’, many workers reconsidered the role of employment in their lives as they faced sickness and burnout. This prompted a mass resignation, where people are changing their employers, careers, and industries to suit newfound priorities. 

The construction sector has not been immune to this. Growing skills shortages and changes in employee preferences have prompted workers to demand higher pay and changed working conditions or seek opportunities elsewhere. This trend is expected to continue for some time, while the global skilled worker deficit continues.

Fewer Apprentices

According to research from the Mitchell Institute at Victoria University, the number of new apprenticeships and traineeships is expected to decline by 30% within two years. That equates to about 130,000 fewer new apprentices and trainees between the start of the pandemic and mid-2023. The number of currently enrolled apprentices and trainees is also tipped to go down. Apprentices are highly affected by what is happening in the wider economy, because often employers are reluctant to commit to a 3-4 year placement during economic uncertainty. Tanya Plibersek, Labor’s spokesperson worries about the implications: “The number of apprentices and trainees has been in decline for seven years, but without serious government action, things are about to get a whole lot worse. If the government fails to intervene, apprentice and trainee numbers will fall off a cliff – we will lose a generation”.

1. Re-engaging Your Talent Pool

Reach out to candidates in your talent pool. Check in with them to see how they are going, how they have progressed their career, to see if they are ready for a change and interested in new opportunities.

2. Show-case your Employer Brand

There has been such a movement and focus on developing a culture that supports employees, from workplace benefits, to inclusiveness to mental health programs. Showcase your brand and your ‘work for us’ messaging by ensuring you have a clear brand message to potential candidates in why they would choose you to work for. Often, the focus on employer websites is why they are the best choice for a client, but they leave out why they are the best choice for a candidate, and a lack of any message, may be interpreted as a lack of care or interest for their workforce.

3. Update Your Facts on Prospective Talent

Top candidates progress their careers. Keep in mind that a Site Manager you spoke with four years ago might be a great fit for a Construction Manager you are currently trying to place! Alternatively, someone who was originally located in Sydney, may now live in Brisbane.

Engaging with candidates takes time, but is crucial to developing a current pool that may fit with upcoming opportunities. Of course, a great Recruiter has a great network, and this is part of their modus operandi that you can tap into when looking for talent.

4. Build a Cadet Program

Create a pipeline of talented construction professionals that align with your culture and build an active and structured Cadet Program. Take the development of cadets seriously so they contribute to the growth of the organisation, and don’t treat them as a ‘spare pair of hands’. Ideally rotate cadets within different teams and areas of the business unit to accelerate their development through depth and variety of experiences, building technical skills, and identifying areas of interest that cadets excel in to find the role they want at the end of the program.

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