Industry
Calls for Standard Frameworks and Productive Conversations on Talent Retainment
and Development
RALEIGH,
NC, October 12, 2015
- FMI Corp, a leading provider of investment banking and management consulting
services for the engineering and construction industry, has just released its
2015 Talent Development Survey in the Construction Industry, and the results
reveal intensifying labor shortages, a widening gap between employer offerings
and employee demands, and a lack of standard processes and frameworks among the
top findings in the survey.
“People-development
is critical to companies’ future success and ability to stay competitive. It is
especially important in an environment of skilled labor shortage and increasing
competition.” said Chris Daum, president of FMI Capital Advisors. “Firms need
to have strategic and holistic processes in place for recruiting and retaining
talent in order to stay viable today and in the future.”
The
survey, taking insights from executives and employees of companies in the
E&C industry, presents findings on various aspects of people development,
including talent retaining, labor force structure and dynamics, standard
processes and frameworks, measurements, succession plans and corresponding
company development strategies. The survey examines the challenges and trends
impacting the construction industry as well as identifies the training
strategies that are now required to maximize performance and development.
Skilled
Labor Shortage Grew Over 30 Percent
One
of the leading findings is that skilled labor shortages are intensifying and
broadly affecting construction firms. The survey shows 86% of respondents
reported that their company was experiencing skilled labor shortages, compared
with only 53% two years ago, a 30% increase in the gap. This situation stems
from the structural mismatch of labor capabilities and employer demands, as
well as the continuing fallout of the last recession. Moreover, the extent of
labor shortages is probably more severe than expected and is starting to impact
construction firms nationwide.
The
survey also reveals an intriguing mismatch where employee engagement is
concerned, especially among millennials. Employers surveyed cite offering
competitive pay (89%), providing an enjoyable work environment (81%) and
offering training opportunities (76%) as the top-three methods they use to
retain key talent in the construction industry. Conversely, millennial
employees list the top three important factors for keeping them engaged are
competitive pay (29%), work-life balance (23%), and personal development (16%).
Other
key findings include:
- Companies in the construction industry lack processes to develop and promote high-performing employees.
- Executives and field manages are expected to have the highest attrition rates over the next five years.
- The majority of firms don’t connect training expenditures and performance management metrics
- Annual performance reviews are a top priority for increasing employee performance and development.
- Having a defined and well-communicated vision is critical to retaining key talent, regardless of age.
Business
Implications
The
Talent Development Survey in the Construction Industry offers a roadmap for
companies looking to strengthen existing people development programs and build
out future talent-retaining strategies. Companies can benefit from developing a
firm-wide vision that encourages culture and building project management and
field supervision capacity. In the meantime, companies can invest in creating and
implementing an effective performance management process.
Source: FMI
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