Top Challenges for Home Builders in 2018 and Recruiting FAQs

March 9, 2018 | Sherry Seaton

You know what isn’t a challenge for home builders (or recruiters for home builders) in 2018? Not enough work.

As a recruiter working exclusively for home builders and construction firms, I’ve been swamped with searches the last two and a half months. I love a bona fide construction boom as much as my clients, but it’s not without its challenges.

Talking to home builders and job candidates across the country every day, I have a lot of discussions about what challenges home builders are facing this year and how it affects recruiting top talent. A few questions come up daily, and I’d like to share my answers with you.

1. What are the biggest issues facing home builders this year? The cost and availability of labor along with building material prices are the two most significant problems builders are facing in 2018. I hear it every day from my clients, and a recent survey of NAHB members confirms it, with 84% of respondents citing these two issues as major challenges. Lumber prices were on an upward trend even before last year’s natural disasters, which further served to increase prices. Some industry experts cite the new tariff on Canadian lumber, which the U.S. is heavily dependent on as partly to blame for the increase, along with high demand. Another challenge many home builders are facing is the limited buildable land supply, with finished lot prices exceeding the prior 2006 peak by two percent.
2. How do you recruit in an environment in which skilled labor shortage is a top issue? I have database of construction talent that I’ve spent years building. For the vast majority of orders I receive, I have a candidate, whom I already have a relationship with, in mind for the position. I help clients tailor their messages and offers to win the candidates they want because I know what they value. You don’t have to offer the most money or have the best perks to attract top-tier candidates. Recruiting in a competitive environment is all about knowing candidates well enough to know what will motivate them to make a move.
3. What motivates employed candidates to leave their current positions for an opportunity with another construction firm? This is different for every candidate, and a good recruiter will have enough of a relationship with the candidate he or she is sourcing to know what this is. In my recent post The Construction Candidate’s Wishlist for 2018, I discuss some of the top things candidates say they look for when considering a new employer. One item discussed in the post, which is especially true for millennials, is that candidates want to know your “why”. If you’re doing something they believe in, getting them to leave their current employer is a much easier negotiation.
4. Which part of the country has the highest demand for construction workers right now? Not surprisingly, the states hit by natural disasters last year have a high demand for construction workers. California, Texas and Florida are in need of construction employees at every level for disaster recovery and rebuilding efforts, as well as previously planned projects. Arizona and Nevada also have a huge demand for skilled construction workers this year due to economic growth and high profile projects. In Arizona, the growth rate for Construction Laborers is 48% and Construction Managers is at 34%.
5. How have the wildfires in CA and other natural disasters of 2017 affected recruiting in the construction industry? As discussed above, California, Florida and Texas have high demand for construction workers and finding enough skilled labor is a huge challenge. Competition in those states is driving up wages and making labor more expensive. There are more candidates willing to relocate from other states for the comp opportunities, which allows recruiters to expand their search beyond normal geographic limitations. The increased demand for workers has created some pretty fierce competition for top candidates, which means my relationships with candidates and involvement with the construction talent community are critical to making successful placements this year.
6. What intrinsic qualities do you look for in candidates for construction management roles? To effectively manage the speed, quality and cost of their projects, managers must have the ability to lead their teams in a relatively unstructured environment. To find strong leaders, I look for candidates with good communication skills, the ability to delegate tasks and understand workers’ skills, optimism, above average problem-solving skills, and calmness under pressure.

The success of your projects depends on being able to attract and retain strong construction leaders and skilled workers. What questions do you have about filling your human capital needs in a competitive environment? Comment below or contact me to have a conversation.