Construction labor shortage update!
For some years now, the construction industry in Canada (and even more so in Quebec) has been facing a major problem: the scarcity of manpower. Vacancies are piling up, and progress on construction sites is sometimes compromised. In 2024, this is still our harsh reality on the subject!
The situation in Canada's construction sector is currently rather tense. By 2023, the industry was already short more than 80,000 workers. A huge number! Yet things don't look set to get any better... Experts predict that things are likely to get even worse in the coming years.
So how can you successfully recruit and retain qualified staff?
This shortage affects all trades, from bricklayers to machine technicians, but specialist trades are particularly hard hit: plumbers, electricians, carpenters, roofers, etc. As you can imagine, this has an impact on the industry. As you can imagine, this has an impact on the industry. Construction costs are soaring, and productivity is taking a hit. Coupled with the slowdown in demand and the end of compulsive catching up on sites put on hold during COVID, it's really not ideal for the sector. It's all the more unfortunate given that, at the same time, the country is facing a housing crisis that's not getting any better, and ever-increasing needs for roads, bridges and public structures.
But how did we get here? A number of reasons have come together.
An aging workforce
First, our skilled workers are getting older. It is estimated that one in five workers will retire in the next 10 years. That's a huge number! And unfortunately, we can't find qualified personnel available quickly enough to replace them.
Young people's disinterest in construction trades
Let's face it, most young people are less and less interested in the construction trades. Long studies have been democratized, and many prefer to obtain diplomas to get better-paying jobs that are considered less tiring. It's a sad fact, and one that doesn't seem to be improving. It's up to us to make them want to join us! Their diplomas are useful in construction!
Working conditions perceived as difficult
Construction work often gets a bad press. People think it's physically hard, that you have to work outside in all weathers, that it's difficult to get time off, and so on. And while it's true that it's not always easy, there are also plenty of positive aspects that are often overlooked!
With this in mind, it is possible to predict how the situation will evolve in the short, medium and long term.
Housing starts are currently slowing down. In practice, this means that fewer new projects are starting up. The impact of this is to relieve some of the pressure on the workforce. But this situation is only temporary, and provides only temporary respite.
Indeed, even with this slowdown, the shortage of skilled workers is expected to continue. Unfortunately, so few people are training and taking up this career path, that the situation is unlikely to improve in the short term.
Looking ahead 5 to 10 years, the experts are not very optimistic. They predict that the shortage will continue, and even worsen, notably due to the large number of people retiring. We can see the storm coming, but we don't yet know exactly when it will erupt.
Fortunately, there are solutions to this growing problem. Being creative in finding new talent (and retaining it!) is gradually becoming an obligation.
Gone are the days when people thought construction was just for the big guys! Companies are working hard to show that it's a modern sector, with high-performance, efficient software. The digitization of the sector is becoming a must, with the ability to offer transparency on the tasks accomplished and the progress of the worksite.
Companies are putting their faith in training. They offer apprenticeship programs that make young people want to take the plunge. Particularly as specialized trades are evolving so fast, regular training is becoming an imperative for growth and profitability.
More and more, we are seeing players in this sector collaborating with schools and universities. They organize site visits, internships, presentations... By adopting this approach, they are able to spot talent even before they finish their studies, and recruit them straight from school.
Finally, companies are beginning to realize that they have a vested interest in broadening their recruitment pool. They are making efforts to attract more women, immigrants and people from diverse communities.
With recruitment increasingly complicated, as we have seen, we need to focus more on talent retention. And there are many aspects to this.
The days when simply paying a salary was enough are definitely over! Today, companies need to offer benefits that set them apart from their competitors. We're talking about top-notch health insurance, attractive pension plans, team activities and so on. The idea is to stand out from the crowd and show that you care about your team. However, offering a competitive salary, particularly for certain professions, is still the best way to recruit talent.
The atmosphere and communication within a company have a direct impact on collaboration and therefore on your company's performance. But to guarantee good communication and transparency on the various aspects of projects - in addition to dedicated software to facilitate exchanges - there's the company culture. This helps to cultivate a sense of togetherness and fosters a healthy, fulfilling working environment for everyone.
Nobody likes to feel like they're standing still. That's why it's highly recommended to offer opportunities for growth and development so that your employees can move up the ladder. Training, chances to take on more responsibility, maybe even job rotation to discover other aspects of the business.
A true modern-day issue, work-life balance is now an essential pillar for every employee. Being able to see their children grow up and spend a few days with their families is a sine qua non for more and more employees, and we understand them! In practice, this means flexible working hours, telecommuting when possible (well, on a building site, that's not easy), and really respecting employees' free time (no calls or e-mails during vacations, for example).
In short, the key to overcoming the labor shortage is to combine everything. The companies that succeed will be those that are able to both attract new talent and retain the talent they already have. The world is changing, and so are workers' expectations, so you need to keep your finger on the pulse and be ready to innovate. As Canada's construction industries face increasing job vacancies, employers need to mobilize more resources for hiring.
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