2022 Marcum National Construction Survey

WE CAN WORK IT OUT

As labor costs increase and skilled labor becomes a precious commodity, construction companies are attacking the problem with multiple tactics, starting with compensation. A whopping 95% of respondents have increased pay. Of those increasing pay, 67% offered raises of 4% or higher, and 13% increased compensation by more than 8%. Keeping up with labor costs concerns some executives, with one noting, “Our greatest challenge is being able to hire qualified individuals at a rate that is sustainable for the long term. We interview a lot of individuals with limited experience that have salary expectations way beyond their qualifications. This is a challenge because we need good, qualified individuals, but we also need the pay rates to be sustainable for long-term company growth.”

Twenty-seven percent of respondents are filling skills gaps when they bid for jobs by forming or considering joint ventures with complementary companies. Others are implementing programs with local trade schools and working to retain employees with not only raises but also stay interviews and other programs. To ensure you’re as competitive as possible on salary, view the Marcum compensation report . Finally, more construction companies are turning to employee stock ownership plans (ESOPs), which provide built-in incentives for loyalty. The number of respondents considering an ESOP more than doubled since last year’s survey, and the number of ESOP companies increased by 5%.

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