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A WAGE WAR
WON ’ T
WORK
Ian Barrow explains why organizations can ’ t compete on wages alone ; listening to what the people want is the way forward
US construction companies are facing many challenges at the moment , including economic uncertainty , high material costs and skilled labor shortages . With organizations struggling to find enough workers , and the gap between labor supply and demand widening , competition for talent is becoming fierce . In the face of such uncertainty , businesses may be tempted to deflect to salary increases as a means of outcompeting their competitors . However , construction leaders must refrain from entering a war of wages .
Salary is the easiest tool to harness when attracting talent , but a high pay package simply won ’ t retain a workforce in the long run .
The construction and homebuilding industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet the demand for labor , according to a proprietary model developed by Associated Builders and Contractors . Faced with an urgent skills shortage , construction leaders need to attract as many new faces into the industry as possible and importantly , retain them . But how can they achieve this ?
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