2022 Marcum Northeast Ohio 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 97% of respondents have increased pay, which, coupled with inflation and material price increases, is causing G&A spending to spiral – 67% of respondents cited higher G&A spending in 2021, slightly outpacing national results. It’s leaving some executives concerned, 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 that have limited experience but have salary expectations that are 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.”

Some companies 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 stay interviews and other programs. To help 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 (ESOP), which provides inbuilt incentives for loyalty. The number of respondents considering an ESOP increased from 14% to 23% year-over-year. You can learn more about ESOPs in our sidebar article.

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