How to Perform a Skills Gap Analysis for the Construction Industry

Last Updated: December 16, 2021

Construction is one of the fastest growing industries. While this boon is great for the future of construction, the shortage of skilled workers makes it difficult to complete builds on-time. Managers must get creative with training and hiring.

As one of America’s fastest-growing industries, construction has no shortage of projects and funding, which are both expected to increase in the coming years. An estimated $1.3 trillion is projected to be spentOpens a new window on construction projects in 2019. Businesses and consumers alike have an increased ability to spend, and for the construction industry, this should mean a promising future. However, there is one area of the industry currently experiencing a massive shortage that can and will delay projects: skilled workers.

An astounding 79% of construction firms aim to hire more skilled workersOpens a new window in 2019 to keep up with increased project demands. Unfortunately, just as many companies will find a large gap between the skills of applicants and the ones needed for employment. The shortage of skilled workers requires construction managers to get creative with how they recruit and train workers. They must evaluate what strengths are missing among their current staff and look to hire accordingly. Start by performing a skills gap analysis to identify the difference between the skills your firm needs and the skills of applicants.

Evaluate What Skills Your Employees Need vs. What They Have

The first step of a skills gap analysis is figuring out areas of need among current staff. Construction employees are required to have a broad set of skills, including reading, math and critical problem-solving. When evaluating what your current team is lacking, it’s important to consider business goals as well as the expectations you have already set for the current positions.

Surveys, assessments, and interviews are all effective ways to evaluate your personnel and get feedback directly from your employees on what areas they feel are currently of need. You may learn your staff thinks you have unreasonable physical expectations, or they simply have not been trained for certain responsibilities.

Getting your staff’s perspective on their current skill set will help you understand how they can improve and evaluate business goals. Once you have a better understanding of the size of the skills gap, you can take steps towards closing it.

On-Site Job Coaching and Training

After conducting a skills gap analysis, you will have a better idea of the training and education your current staff needs. If your employees are reliable, hardworking and loyal, you should always look to develop their skills before hiring from the outside.

Your construction firm should develop a plan to train employees on the jobOpens a new window by consulting local community colleges and the department of labor. Both have apprenticeship programs and on-site training methods to help develop hard skills required in construction. Incentivize your current employees by increasing pay and responsibilities with completed training.

Evaluate Your Hiring and Recruiting Methods

If the skill discrepancy among your current staff is too large, look to bring in new talent. You should be hiring for your areas of need, and that might mean re-evaluating your hiring and recruiting processes. Structured interviews are a great way to make sure you are evaluating every candidate in the same fashion, which allows you to better compare and contrast.

Asking the right construction worker questions during the interview is paramount to finding ideal candidates. Are they physically able to perform construction work? Do they have the math and equipment skills needed to perform multiple tasks? Are they aware of safety requirements? All these are necessary questions to ask.

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The quality of your applicants is directly tied to your recruiting methods. Re-evaluate where and how you are advertising. Trade shows and job fairs at high schools and colleges are a great way to find new candidates willing to develop the skills needed for construction. Your marketing efforts should be concentrated and targeted on finding employees that have the skills you need. Develop a system where you recruit unemployed workers of industries with translatable skills, such as carpenters and HVAC installers.

Hire women. The number of women entering the construction business is growing. In April 2018, there were 485,000 new hires in the construction industry and an additional 232,000 job openings. Many women are skilled and looking for work in anything from heavy machinery to managerial roles.

Partner With Trade Schools and High Schools to Create Apprenticeships and Job Pipelines

It is important to create a job pipeline with high schools and trade schools. Partner with them to develop educational programs during the summer that will teach skilled trades like applicable math and physics. Talk to counselors about recruiting candidates who are interested in the field. Set up apprenticeships with students where they can spend time both in and out of school learning technical skills that are applicable in the world of construction.

Finding young applicants that are searching for a career is a great way to develop and hone talented personnel to your own standards and skills.

Incentivize Workers to Join the Construction Industry

Offering competitive pay, benefits and health care is necessary for attracting the best candidates. Incentive people looking for work by providing on-the-job training coupled with better pay and benefits. This is a great way to find nontraditional applicants that will become interested in construction based on the increased incentives.

It’s vital to provide clear progression paths. Workers want advancement opportunities, so create a system that gives them that chance. Clearly define how they can improve and hit performance expectations. If a company makes it clear opportunities beyond an entry-level job exist, the right candidates will start applying. People don’t just want jobs — they want careers.

By conducting a skills gap analysis, you’ll have a roadmap to improve employee development and hiring processes. Partnering with other schools will also give more direct access to new talent. At the end of the day, it’s about encouraging potential employees to join the industry, keeping current employees engaged in their work all while meeting your ultimate business goals.

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