Construction employment is often labeled as "not well-paid" or "vulnerable to economic downturns." These concerns are not entirely unfounded. Priya Kapila, head of compensation practice at FMI Corp., points out that historically, contractors have often controlled costs by keeping base salaries low, especially for entry-level positions, and compensated with bonuses. However, this model is being challenged.

Layoffs related to the economic downturn in the mid-2000s further reinforced this negative impression. Kapila said, "The business cycle has inherent challenges, and even today, we see some people who leave the industry are reluctant to return." She added that this is not conducive to attracting a younger generation seeking economic stability. But Kapila also emphasized that the construction industry's "low pay" reputation is not entirely fair, especially for graduates of construction management programs. FMI research shows that the industry offers competitive compensation compared to other sectors. As the talent market becomes more competitive and wages rise across industries, "the low-pay strategy no longer works."

Brent MacDonald, a construction management instructor at Indiana State University, agrees: "If you're a drywall contractor, finding people requires skill... You can't just pick someone off the street. You have to train them to become drywall finishers and pay them accordingly. The talent market is competitive now; you can't pay $13 an hour anymore."

Exploring Flexibility

However, the issue is not just about pay. During the pandemic, many companies adjusted operations to accommodate more flexible work arrangements, including fully remote and hybrid work. The on-site nature of construction work conflicts with working from home and may have complex effects on recruitment.

Paul Crovella, assistant professor at the State University of New York College of Environmental Science and Forestry, said, "People are reassessing what contributes to quality of life." He noted that while the pandemic has not reduced overall interest in construction careers, it may have prompted people to prefer work arrangements that rely less on being on-site. Some students view on-site work as a positive experience: "For these individuals, it's like leaving the office and working in a factory or workshop."

Kapila believes that flexibility "is still a topic the industry is figuring out," but employers have the motivation to pursue it because employees in their 20s may place less value on traditional selling points like retirement benefits and profit sharing. "When engaging with candidates, you have to consider the total compensation package and think about which parts matter most to them."

Even before the pandemic, industry analysts acknowledged a conflict between young workers and on-site expectations. In a 2016 report by Marcum LLP, researchers Anirban Basu and Joseph Natarelli wrote that the millennial workforce shows a preference for flexible working hours, but this expectation "is inconsistent with most construction activities."

Nick Apanius, senior vice president at Cincinnati-based Messer Company, oversees human resources and believes remote work raises cultural issues: "How are we different from those who build the building?" He added that even employees who can work from home show a desire to be face-to-face with their teams and on-site. "We believe people need to be in the office, and I know it's challenging." But Messer has implemented flexible work guidelines for years, even for field operations, especially during the pandemic when workers needed to care for aging parents, children, or other dependents.

Attracting the Values of Gen Z and Millennials

Experts say the challenge of selling construction to young workers may seem daunting. Donald "Bo" McNabb, senior lecturer in construction management at Indiana State University's College of Technology, joked, "If you hand them a hammer before they get their iPhone, maybe you have a chance. That's what they're competing with."

Multiple sources suggest that employers need to attract potential workers earlier. Casey Welch, CEO of Tallo, a platform for employment and scholarships aimed at young workers, noted that this process can begin before students graduate from high school. "The best way to get talent is to start cultivating it. If you want them, you need to reach them early and often."

External groups can also play a role. MacDonald mentioned an initiative partially supported by the local industry association Wabash Valley Contractors Association, which implemented an exhibit at a local children's museum this summer, allowing kids to engage in hands-on activities like painting, welding, and assembly. Such initiatives may encourage the next generation to "put down their phones and pick up something real," but not all outreach succeeds. MacDonald shared his experience speaking to local middle school students, where he tried but may not have succeeded in helping students connect everyday experiences to construction.

A Strong Recruitment Toolbox

For newer graduates or those already in the workforce, construction jobs carry an entrepreneurial element that can be appealing. Welch said that some who enter the industry eventually start their own businesses, which may offer financially focused young workers opportunities that other career paths cannot match.

Other sources support this view. Anirban Basu, chief economist at Associated Builders and Contractors, told Construction Dive that young workers "grew up during a period of debt crisis," which leads them to worry that a college education alone does not guarantee a good future, potentially sparking interest in possibilities in fields like construction. "For example, many electricians start their own companies, and so do plumbers and roofers," Basu said. "They may find that attractive. So there is still hope, but the industry must make sustained, coherent efforts to reach these potential groups."

Isabel Perez, a recruiter at Messer, said the pandemic "created a terrible environment for starting adult life and a career." She added that young workers "want to work for a company that makes them feel like part of a team and helps them grow." Perez herself did not consider the construction industry early in her career, but Messer's employee ownership structure played a significant role in her decision to join. "We all have a stake in this game, and everyone is here to support each other and help you grow," she continued. "I knew that's where I wanted to be. That mattered most to me."

Technology can also be a tool for recruiters. Apanius noted a surge in investment in construction technology, especially AI systems, enabling engineers to plan projects virtually before going to the field. "The way we build buildings now is vastly different from 20 years ago."

Construction employers can learn from recruitment strategies in other industries facing similar shortages. Welch mentioned Tallo's work with the trucking industry, incorporating gamification into recruitment apps, and seeing trucking companies emphasize immersive technologies like virtual reality to give candidates a better sense of the job. Crovella had similar thoughts: "Contractors have the opportunity to use some of the immersive technologies that captivate this generation." He cited examples of companies using VR to simulate critical skills like welding.

Several sources noted that while these strategies may not always work, construction jobs offer advantages that other industries find hard to match. Apanius said, "What we do isn't for everyone, but at the end of the day, you can look back at something you created from nothing." This tangible sense of achievement is another passion that drives industry veterans. MacDonald said, "You want to drive by somewhere and say 'I helped build that,' and as an accountant doing budgets, you can't do that."

Zachary Phillips, assistant editor at Construction Dive, contributed to this article.