As we wrap up another financial year in Australia, the construction industry is facing some serious challenges, particularly when it comes to the lull and the current economic environment, which impacts on staffing levels and recruitment. The sector, often seen as a indicator for the economy, needs to adapt to the highs and lows of market demands.

Yes we’ve done it before, and we’re capable. I agree totally. However a lot of businesses I’m talking with are saying they are exhausted and need some new ideas or a fresh set of eyes over the problem.

With the end of the financial year often bringing a lull in activity, it’s the perfect time for businesses to re-evaluate and prepare for the future. I’ve been in the industry a long time, am an expert in recruitment and have a high-level and trusted network. I am grateful for the meaningful and in depth conversations I have that give me a high level of insight into the industry.

I’ve included some tips I have gleaned for you. Some are tried and tested tips you have seen before but it is good to refresh, and some tips are new:-

Current Statistics:-

The construction recruitment landscape in Australia for 2024 is experiencing several notable trends and challenges according to Job & Skills Australia. Here are some key statistics and insights:

1. Recruitment Difficulty: As of early in the first half of 2024, 55% of employers reported difficulties in recruiting, up from 51% at year end for 2023, though significantly lower than the peak of 75% in July 2022. This indicates ongoing challenges in finding suitable candidates despite an overall easing trend over the past 18 months;
   
   
2. Employment Projections: The construction sector is expected to continue growing, with a particular emphasis on residential and non-residential projects, driven by ongoing infrastructure investments. The number of construction businesses in Australia has been steadily increasing, despite the record number of bankruptcies, reflecting a 1.3% annual growth rate over the past five years;
   
   
3. Employers Optimism: Expectations to increase staffing levels have been particularly variable across metropolitan and regional areas in recent months. At the end of the financial year 2023-2024, employers were slightly less optimistic about future staffing levels, with the proportion of employers expecting to increase staff numbers in the next three months.

Recruitment Woes

Finding the right people for the job is one of the biggest headaches in the construction industry right now. There’s a chronic shortage of skilled tradespeople—think carpenters, plumbers, electricians—and it’s not getting any better.

According to the National Skills Commission’s 2024 Skills Priority List, over 40% of construction occupations are facing shortages. The workforce is aging, and fewer young people are taking up apprenticeships. On top of that, experienced project managers and specialised professionals are becoming harder to find.

This scarcity of talent drives up wages, adding to the financial pressure on companies. Plus, the temporary nature of many construction jobs makes the industry less appealing to potential recruits, who often seek job security elsewhere.

Tips for Going From Woe to Go

To mitigate these challenges, successful construction firms are focusing on strategic planning including their recruitment efforts. Building quality relationships with recruiters, a workplace culture model to become an employer of choice, a robust talent pipeline, leveraging online job platforms and social media, and participating in networking events are some of the strategies being employed to attract and retain talent.

During these slower periods, construction businesses can focus on several key areas to strengthen their operations and gear up for future growth. Here are three areas you can revisit to bring forth a new way of thinking or approach to your business in the upcoming financial year:-

1. Stability is the name of the game: Embracing Former Business Owners

The end of the financial year typically brings a slowdown in the construction sector. Projects wind down, and new ones haven't started yet, leading to a dip in activity. The Australian Industry Group’s Construction Outlook report for 2024 indicates that while there has been a moderate increase in activity due to infrastructure projects, residential construction has slowed down significantly. While this can be challenging, it also provides a valuable opportunity for businesses to take stock and strategise.

An emerging trend in the construction industry is the influx of skilled tradespeople who once owned their own businesses but are now seeking salaried positions. Many of these experienced professionals are attracted to the stability and benefits that come with regular employment, such as consistent income, health benefits, and reduced administrative burdens. Some have been burned by the numerous bankruptcies the sector has experienced recently, and the slowing down of payment timelines. Profits can be precarious in these times, and stability is rising as a high priority.

For employers, this shift represents a valuable opportunity to tap into a pool of highly knowledgeable and seasoned workers who bring a wealth of expertise and a strong work ethic. By hiring former business owners, companies can benefit from their entrepreneurial mindset, problem-solving skills, and ability to manage projects efficiently, thereby enhancing overall productivity and project outcomes.

Employers might initially be hesitant to hire former business owners, fearing that these candidates might be too independent or have difficulty adapting to a structured, employee role. However, this mindset overlooks the substantial advantages these individuals bring to the table. Former business owners possess a deep understanding of the construction industry, strong leadership skills, and a proven ability to handle complex projects and solve problems on the fly. Employers should reconsider and embrace the opportunity to leverage these attributes. By tapping into this talent pool, companies can gain professionals who not only enhance operational efficiency but also contribute innovative ideas and a fresh perspective, ultimately driving the business forward in a competitive market.

2. Make the Most of Quiet Times

Economic uncertainties—like changes in government spending on infrastructure or fluctuations in the housing market—can also impact the industry. However, these quieter times are perfect for planning and making your operations more efficient.

Hunting for Tender Opportunities: Do Your Homework: Spend time researching upcoming projects and tenders. Work out if you can move up or down tiers. Networking with industry peers and attending events can uncover valuable leads and opportunities on the horizon. We all get a bit frantic when times are busy, so make the most of your time connecting with your peers and network groups that can help you in the future. You may want to read my article for tips on tenders at: “The ‘Big Build’ & Tenders For the 2032 Olympics".

Polish Your Bids: Use this time to improve the quality of your bids. Understand client needs better, refine your selling points, and make your proposals stand out. Often bids are rush, rush, rush, so develop clear strategy, policies and procedures so your tenders are highly polished and standout when the time comes.

Review and Revamp: Take a good look at your organisational structure. Identify inefficiencies and areas where roles and responsibilities can be streamlined. Consider implementing this on a regular basis to ensure that the structure evolves in line with the organisation’s growth and changing objectives. Additionally, engage with employees at all levels to gather insights and foster a collaborative approach to restructuring, ensuring that changes are practical and well received.

Embrace Tech: Consider implementing or upgrading project management, CRM systems, automated reporting and accounting software and leverage technology to automate routine tasks and improve communication and collaboration across the organisation. Digital tools can significantly enhance efficiency and reduce errors. Managing change and the time to become expert with new tech is a challenge for most businesses It is often a point where employers loose key personnel. Not because a change is needed, but the implementation time is too fast and the pressure can be too much. So slow times are ideal to implement the changes for your teams and make the experience enjoyable and comfortable.

Cutting Costs:

• Expense Check: Conduct a thorough review of your expenses. Identify non-essential costs that can be trimmed without compromising quality.
• Supplier Deals: Negotiate better terms with suppliers or explore alternatives that offer better value.
• A great article on this I’ve written is” “Protect Your Business: 4 Critical Due Diligence Checks You Can’t Afford to Skip”.

3. Smart Staffing Strategies

Effective staffing is crucial for managing costs and maintaining flexibility as market conditions change. Here are some additional strategies to enhance staff management:

On Demand Skills: Build strong relationships with reputable labour hire agencies (like us) to ensure a reliable supply of qualified workers when you need them – both professional and trades. During peak periods, use labour hire services to bring in additional skilled workers. This approach allows you to scale your workforce based on project demands without the long-term commitment and costs of permanent hires. If you want to know about the advantages of this approach, you can read my article: “Labour Hire Done Differently”.

Rethink Your Team: Maintain a core team of essential staff who are versatile and skilled in multiple areas. This skeleton crew should be capable of handling various tasks during quiet times and scaling up quickly when projects pick up.

Map Current Structure and Role Clarification: Create a detailed map of the current organisational structure, highlighting all positions, departments, and their interconnections. This visual representation can help in identifying redundancies and inefficiencies more clearly. Ensure that every role within the organisation has clearly defined responsibilities and outcomes. This minimises overlap and ensures that each team member knows their specific contributions to the organisation’s success.

Efficiency Analysis: Analyse workflows to identify bottlenecks or unnecessary steps that slow down processes. Engage with employees to understand their daily challenges and gather insights on how tasks can be performed more efficiently. Where overlaps and inefficiencies are identified, consider redefining roles and responsibilities. This might involve merging similar roles, eliminating redundant positions, or redistributing tasks to better balance workloads.

Cross-Training: Invest in cross-training your employees. This not only broadens their skill sets but also ensures your core team can manage a range of tasks, reducing the need for extra hires during busy periods. Providing these opportunities to employees not only boosts morale but also improves overall competency within the organisation.

Regular Reviews: Conduct regular performance reviews to ensure your team is operating efficiently. Provide additional training for underperforming employees or consider letting them go to boost overall productivity. Tips on conducting reviews can be found at: “The Art of Conducting Effective Employee Reviews”.

Flexible Work Options: Offer flexible work arrangements to retain talented staff who need non-traditional hours. This can also attract new recruits who value work-life balance.

Mentorship Programs: Establish mentorship programs where experienced employees can guide less experienced staff. This helps in skill development and boosts morale.

Employee Engagement: Foster a positive work culture through regular team-building activities and open communication channels. Engaged employees are more productive and loyal.

Career Development: Offer clear career paths and professional development opportunities. Investing in your employees’ futures can increase retention rates and attract new talent.

Work-Life Balance: Promote a healthy work-life balance by offering flexible schedules, remote work options, and sufficient time off. This can prevent burnout and improve job satisfaction.

Performance Incentives: Implement a performance-based incentive program. Rewarding employees for their hard work and dedication can motivate them to maintain high standards.

4. Other Ideas for Growth

Besides staffing and economising, here are some additional strategies to build a robust construction business:

Diversify: Explore new markets or services that complement your existing offerings. This could include sustainable building practices, renovation services, or even branching into real estate development.

Invest in Training: Offer continuous training and development programs for your staff. Keeping up with industry trends and new technologies will give your business a competitive edge.

Strengthen Client Relationships: Foster strong relationships with existing clients and seek their feedback to improve your services. Happy clients are more likely to provide repeat business and referrals.

Boost Marketing: Enhance your marketing efforts to build brand awareness and establish yourself as a workplace of choice. A strong brand can attract new clients, projects and top tier staff, even in competitive markets.

As the construction industry navigates the end of the financial year, strategic planning, smart staffing, and operational efficiency will be key to sustaining growth and overcoming recruitment challenges. By taking proactive steps during quieter times, businesses can set themselves up for success in the year ahead.

Our Superpower

Our leading 'superpower' is attracting and retaining quality team members who share our values of honesty, integrity, diligence, and service, allowing us to deploy quality team members on client sites quickly.

Our team member's superpower is being motivated, prepared and ready to enthusiastically contribute to the projects at hand, more than just a pair of hands.

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Read other informative articles for both employers and workers at: https://www.siteforcerecruitment.com.au/blogs

Chantal Penny is the Director with Superpowers of SiteForce Recruitment. A thought leader in the industry, Chantal, based on her expertise and industry perspective, offers unique guidance, inspiration, and influence in the industry. Chantal Penny is also a thought leader in the industry with her Podcast, Talent Instinct, which is available at:
  https://talentinstinctpodcast.libsyn.com/site

At SiteForce Recruitment, we specialise in labour-hire and permanent recruitment in the construction industry. We are committed to valuing people, safety and wellbeing, collaboration, trust and, of course – results!

CONNECT with us via our contact page or bookings links on our website if you are looking to recruit for, get your dream job, or join our amazing labour force team.