There is an exceptional pool of talent coming onto the market, so if you are looking for exceptional staff, now is the time! You may just get Tier 1 talent at Tier 2 pricing where you both feel you’re winning.
The construction industry is experiencing a notable transformation in workforce dynamics at the moment, with a growing number of skilled workers opting to move from tier 1 companies to tier 2 companies. These professionals bring with them a wealth of experience, adding significant value to projects.
This movement is driven by various factors, including the number of bankruptcies in the industry, tendering processes showdown, companies no longer taking on unprofitable work, dissatisfaction with job management practices, workplace culture, lifestyle preferences, and the desire for more fulfilling work environments. This shift is giving building companies an exceptional pool of high-quality candidates to choose from, heralding a shift in the traditional dynamics of the construction labour market.
This presents a strategic opportunity for companies to seize upon this shift in workforce dynamics. By capitalising on this movement, companies can enhance their workforce, accelerate project timelines, improve project outcomes, and foster a dynamic work culture that attracts and retains top talent. In essence, this strategic move is a proactive step towards securing a competitive edge in the rapidly changing construction landscape.
So let’s look at why this talent pool is moving, and what you can do to provide the right enticement and environment for them to join your team:-
1. Job Satisfaction
Another compelling reason behind this significant movement of professionals from tier 1 to tier 2 construction companies is the desire for greater project ownership and a tangible impact on outcomes. In 2023, job fulfilment has escalated to a top priority for employees, with a staggering 78% of professionals considering it a ‘crucial factor’ in their career decisions and overall job satisfaction.
In tier 2 companies, employees often find themselves playing a more integral role in the decision-making processes and project execution. They have the opportunity to see a project through from start to finish, which can be immensely fulfilling and professionally satisfying. This level of involvement offers a sense of ownership over the work they contribute, providing a platform to showcase their skills and innovations. Professionals seeking a more meaningful and hands-on engagement with their projects find tier 2 companies to be a better fit for their aspirations, thus driving them to make this transition.
In 2023, studies have shown that job fulfilment directly correlates with a 21% increase in productivity, highlighting its critical importance in the contemporary workforce. This means that if you place the right person in the right job, it makes a substantial difference to both the employee and the employer. If you can secure one of these ‘movers’, it may make a significant difference to your company.
2. Lifestyle Hours and Choices
The lifestyle choices and working hours offered by tier 2 companies are becoming increasingly attractive to construction industry professionals. Many tier 1 companies have a reputation for demanding long working hours and erratic schedules, leading to burnout and strained work-life balance. Tier 2 companies, in contrast, often offer more predictable and reasonable work hours, allowing workers to have a better balance between their professional and personal lives. A report by Randstad revealed that 58% of workers cited a desire for improved work-life balance as a key factor influencing their decision to move to tier 2 companies.
3. Dissatisfaction with Job Management
One other reason for the exodus of workers from tier 1 companies is the dissatisfaction with the way jobs are managed within these organisations. Tier 1 companies are often large, handling massive projects with extensive bureaucracies and incredible workloads. This can lead to a lack of personal involvement and a sense of detachment from the projects. Workers, especially those seeking a more hands-on, impactful role, find the environment in tier 2 companies more fulfilling. A study by the Construction Industry Institute revealed that 67% of construction professionals felt more engaged and valued in tier 2 companies due to the more direct involvement in projects and decision-making processes.
4. Unhealthy Workplace Culture
Workplace culture plays a pivotal role in job satisfaction and retention. Tier 1 companies, due to their size and organisational structure, can sometimes struggle to maintain a positive and inclusive culture. Workers often complain about bureaucracy, a lack of communication, and a sense of being just a cog in the wheel. On the other hand, tier 2 companies, being smaller in scale, are often able to foster a more intimate and collaborative work environment. A survey conducted by the Chartered Institute of Building found that 72% of professionals cited a healthy and encouraging workplace culture as a primary reason for moving to tier 2 companies.
Now is the time to dip into this high-quality pool
Now is the opportune moment for construction companies to seize the advantage presented with access to a high standard of candidates. This transition presents an opportunity to enhance their workforce with a wealth of talent from a high-quality pool, ultimately contributing to improved project outcomes and the overall growth of the industry.
By recognising and addressing the reasons behind their movement from tier 1 to tier 2 companies—such as their desire for a more engaging, hands-on, work environment and a better lifestyle, employers can tailor their offerings to meet these expectations and secure a great team member.
Offering a more involving role, fostering a positive and inclusive workplace culture, and promoting a healthier work-life balance can be significant attractions. By leveraging these preferences, construction companies can not only enhance their projects' efficiency and quality but also establish themselves as employers of choice within the evolving construction industry. This strategic approach in talent acquisition can drive long-term success and growth for the company.
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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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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 well-being, collaboration, trust and, of course – results!
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