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Creatively Attracting Talent: HUB Construction Outlook 2023

By: John Wallen Vice President and Wisconsin Construction Practice Leader Hub International www.hubinternational.com

The construction business is booming. Across the country, the industry is short 650,000 workers to meet current demand.1 And right here in Milwaukee, employment in the construction industry increased 7% between June 2021 and June 2022.2

Indeed, the single biggest issue facing the industry in 2023 will be worker availability. Construction firms fighting to attract the limited supply of workers will need to come up with new approaches to onboarding, training and benefits.

Finding the Best

In this market, there is no choice: Enhance benefits or risk being left behind. Construction firms looking to attract the best and the brightest are offering benefits previously unheard of in the industry, including:

Safe workplaces: The construction industry accounts for the largest number of fatal work injuries of any industry.3 Yet everyone would prefer to work with a firm that prizes safety. A Safe workplace is a more profitable and productive workplace.

Competitive benefits: Firms with a non-unionized workforce are beginning to offer dental and vision plans, as well as paid time off – including vacation and sick days.

Personalized benefits: As part of a benefits strategy centered on delivering quality employee experiences (QEX), personalized benefits increases worker satisfaction and engenders greater loyalty.

Retirement plans: Companies are adding employersponsored retirement plans, including auto-enrollment and an employer contribution match.

Employee stock ownership plans (ESOPs): A newly popular option, ESOPs allow company owners to strengthen their capital structure while increasing worker loyalty. Nearly 20% of the nation’s top contractors have opted for ESOPs4— a trend that is expected to snowball in 2023.

Making the Plan

In this uncertain economy, innovation will be the key to success. Follow this approach to create a plan to attract and retain talent:

1. Select the right benefits. Only you and your workers know which benefits are the most important. But companies that prioritize health, safety and well-being demonstrate that they care about their employees through their benefits offerings.

2. Prioritize training. Proper training emphasizes the company’s commitment to protecting the workforce and serves to reduce the number of incidents. Make safety a priority, and ensure workers understand expectations and commit to maintaining a safe work environment.

3. Work with your broker. Your broker is your strongest ally and should have the experience and resources to help. Share any business changes you introduce with your broker so there are no surprises at renewal time. Consider your insurance and risk management needs early so your broker can identify the best options and partner with you to develop a plan to move forward.

About the author

John Wallen is Vice President and Wisconsin Construction Practice Leader for global insurance brokerage Hub International. He has more than 30 years of experience providing risk management consulting, effective insurance solutions and innovative risk and cost reduction strategies for the construction industry. John is active in multiple construction industry trade associations including ABC, AGC, ASA, Plumbing and Mechanical Contractors Associations as well as the Construction and Financial Management Association. John has been a featured speaker for several of these and other construction associations on various risk management topics.

1Construction Dive, “Construction faces over half-a-million-worker shortage,” Feb. 23, 2022.

2Mortenson, “Milwaukee Construction Cost Index, Q2 2022,” accessed November 7, 2022.

3U.S. Bureau of Labor Statistics, “Number and rate of fatal work injuries, by industry sector, 2020,” accessed November 7, 2022.

4Forbes, “Why Construction Companies Are Leading The ‘Decade Of ESOPs’ Trend,” February 21, 2022.