*CHAPTER 2*
The Future of the Workforce
*THE FUTURE OF THE WORKFORCE LIES IN EMPOWERING PEOPLE*
Competitive compensation and benefits
Work-life balance
Career development and advancement
Safer jobsites supported by technology
Other
To address labor concerns, the workforce of the future may have non-traditional backgrounds and a broader array of skills. Company culture will evolve as well, with an increased reliance on skills like programming, business development, project management, collaboration, and people management, over physical ability. This shift will help to offset the labor shortage, building resilience as workers retire or leave the industry.
It’s going to be increasingly important to prioritize worker upskilling in order to attract and retain a skilled workforce. As new workers seek out opportunities to develop professionally, companies proactively providing growth opportunities will retain the competitive edge. According to the state of construction survey, more than 60% of construction leaders say they stay in construction for financial growth, career advancement, or skills development.12
As the workforce changes, company culture becomes a moving target. Enabling the workforce with career growth opportunities will be the key to retaining workers.
Click on the graph to enlarge.
The workforce of the future will empower workers by focusing on the root causes of burnout and mental health challenges. According to the survey, common work-related experiences include factors like long hours and unpredictable schedules (35%), wage issues (24%), and limited career advancement opportunities (23%),13 which can contribute to burnout and/or mental health challenges.
The good news is that staff well-being is already of great importance to construction organizations.
According to the How We Build Now report, 48% of respondents have a wellness and mental health policy in place to reduce the likelihood of burnout14 and 57% of companies offer mental health benefits.15 And yet, 45% of survey respondents say that burnout is a primary reason people leave their companies, with that concentration being even higher among medium- sized companies (50-500 employees).16 Similarly, only 26% of construction workers are likely to seek mental health care.17
Advancements in productivity enabling flexible hours and a stronger work-life balance will result in positive culture changes. Approximately half of respondents surveyed said that they would like to see culture improvements focused on work-life balance in the next 2-3 years.
In the future, investments in workforce-empowering technologies and leadership training will make for a more fulfilling place to work.
“Wearable tech will be a focus for Studson and helmets happen to be one of the best places to start.
Monitoring live worker health will be very important. We already see development going that way.
We have a lot of requests from the people we work with, specifically about monitoring heat stress, which will probably be one of the first things that we’ll see addressed. Then being able to, in real- time, tell that worker or tell management, ‘Hey, you need to go on break, you need to eat, you need to drink 16 ounces of water immediately and take a break for a half hour.’ This is an area where wearables can be impactful and really help save people out there in the field.”
We have a lot of requests from the people we work with, specifically about monitoring heat stress, which will probably be one of the first things that we’ll see addressed. Then being able to, in real-time, tell that worker or tell management, ‘Hey, you need to go on break, you need to eat, you need to drink 16 ounces of water immediately and take a break for a half hour.’ This is an area where wearables can be impactful and really help save people out there in the field.”
The construction industry is facing a ticking clock: 53% of the workforce is expected to retire by 2036.18 And, according to the Bureau of Labor Statistics, the average age of a construction worker increased over the past 7 years from 40 to 42, double the national average for other industries.19 This mass exodus will result in the loss of knowledge and expertise. 30% of construction leaders say some of their most experienced people will retire within the next few years, taking valuable knowledge with them, according to the How We Build Now report.20 This reality will create a knowledge gap that leaders should be solving for now.
Maximizing knowledge transfer not just downward, from senior workers nearing retirement, but upwards, from next-generation workers to those above them, will increase workforce engagement.
Those just joining the workforce will learn what they need to know about legacy tools, equipment, and processes, while those same workers will teach the existing workforce how to utilize technology to augment their task flows. This knowledge share and transfer will also help address generational challenges experienced by 96% of construction leaders surveyed.21
Intentional knowledge transfer will help lead to a culture that is more welcoming to the next generation and more enriching for those further along in their career journeys — resulting in career longevity and increased engagement.
Any innovation that technology offers the construction industry can’t be fully realized without a workforce able to use it. With so many people retiring over the next decade, up-leveling the current workforce through training is critical to maximizing technology effectiveness. According to the How We Build Now report, 47% of respondents already have training programs in place for upskilling and reskilling, while 41% plan to implement them in the next 12 months.22 Training and upskilling workers will maximize technology's impact on construction while also creating the career growth opportunities workers crave.
New leadership styles will emerge as the construction workforce evolves. Beyond technical skills, leaders will be challenged to deepen their self-awareness and people management skills. Soft skills will become increasingly important. Additionally, increasing communication and promoting openness and transparency was stated as the single most important thing to improve culture by 28% of respondents.23
According to our survey, 41% of respondents want their company to focus on leadership skills.24 Respondents also reported that they wanted a focus on executive development. By investing in leadership development, companies will create well-rounded leaders who have both the technical skills and the people skills to support a healthy culture, employee well-being, and high-performing teams.
Companies will need to define and understand their unique value proposition in order to recruit the next generation of construction workers. It must be technology-forward and focused on every stage of the employee lifecycle.
An effective and supportive onboarding program presents an ideal opportunity to highlight the organization’s dedication to workforce experience and meaningful work. This has a significant impact on the employee journey and tenure.
Additionally, conscious succession planning lets companies proactively and intentionally design their future, ensuring the next generation of leaders can succeed.
"The building trades have traditionally relied on the passing down of knowledge from generation to generation. When experienced workers retire, their expertise leaves with them. Compounding this issue, fewer people are entering the trades.
The key challenge lies in improving recruitment and training practices to inspire new talent.
Advanced technology is key to attracting new talent to the trades. Tools like drones, robotics, 3D modeling, and a more seamlessly connected jobsite will transform planning and execution, appealing to the next generation of workers.
A unique challenge for the building trades is overcoming the stigma. Technology is the key to doing that, and will play a critical role in meeting construction demands, improving recruitment, and enhancing project execution. Technology lays the foundation for new generations to transform and evolve the industry for years to come.”
Rogers-O’Brien (RO), a Dallas-based construction company, aims to “build a better Texas.” The RO team has built everything from residential housing to houses of worship. To accomplish its ambitious goals, RO relies on a culture of innovation.
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That means better tools, more efficient processes, and a tech-savvy workforce. The RO leadership believes that construction isn’t just a vocation — it’s a way to find fulfillment in life.
RO also has more practical ways to bring young, enthusiastic workers onto construction sites. The workforce of the future can expect safer working conditions, a greater focus on mental health, and less drudgework. “Part of changing the image of construction is getting people to understand how much meaningful and purposeful work can be done.
It’s not just a job or a career in construction. For me, this is a calling. And I can’t think of a greater responsibility than to be able to shape the geometry for everyone who lives on this little blue marble”, says Todd Wynne, Chief Innovation Officer, Rogers-O’Brien.
“You can see the writing on the wall of how big of a challenge we’re going to have ahead of us. What we’re also trying to do is lean into automation and augmentation, and leveraging technology. I’m very bullish on robotics and AI. We’re going to have to automate the three Ds. If it’s dull, dirty, or dangerous, let’s automate it.”25
At Peninsulators, a window covering installation company in San Jose, California, the staff knows when to work hard and when to take it easy.
In an era of smartphones and cloud computing, workersoften feel the need to be on-call 24/7. Instead of driving employees to exhaustion, Peninsulators uses remote work technology to help their crew maintain a healthy work/life balance.
Modern productivity software can streamline simple administrative tasks, allowing employees to be more productive during the workday. Databases organize projects automatically, meaning employees don’t have to sift through huge, unsorted binders. VR and AR software let crews work from their own homes and neighborhoods rather than living out of hotels and airports. On-site robots using sophisticated AI canperform quality checks with minimal human oversight.
Workers can do their jobs more efficiently, then disconnect and live their lives at the end of the day.
“It’s important to focus on the new generation entering the workforce and the rapid technological advancements occurring globally. We have reached a point where we can establish new standards and integrate technology more effectively,” says Courtney Daniels, Chief Executive Officer, Peninsulators.
“As a result, we can thoughtfully evaluate workplace policies, particularly those concerning employee work hours and overall well-being.”26
