Education Vs. Experience Part 3: Recruitment Issues Today = Retention Issues Tomorrow

 

 

The Versus Series

 

 

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Recruitment issues today turn into retention issues tomorrow

 

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*NOTE: This is Part 3 of a series on education vs experience. Part 1 is here and Part 2 is here.*

In the first Education Vs. Experience post, we compared the two to see which one was more valuable (Spoiler alert: Experience is – by every metric). We followed it up with part 2, where I discussed what I believe the future holds.

I left this point off of part 2 because, as you will see, it deserved its own article.

The reason?

It has MASSIVE ramifications that if people/companies/the entire industry doesn’t change and things remain the same, we will see some catastrophic results.

Below is the flow of thought, which we will explore in greater detail.

 

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Recruitment Issues the Past 20 Years = Complacency in the Industry

Complacency in the Industry = Age Gap Now

Age Gap Now = Experience Gap

Experience Gap =  Greater Complacency

Greater Complacency = Recruitment Issues Today

 Recruitment Issues Today = Retention Issues Tomorrow

Retention Issues Tomorrow = ???

 

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The above is a fairly concise way of explaining what’s taking place in the construction industry – and has been, for some time now. What’s more, I don’t take pleasure in being the one to alert everyone, either. Human beings do some truly strange things, and in this case, we do not consider the complexity of problems – instead, we pick low-hanging fruit and state empty platitudes. Not only is this unproductive, it’s also distracting.

Let’s unpack each of the above and see what we can glean.

 

Recruitment Issues the Past 20 Years = Complacency in the Industry

 

The recruitment issues of the past 20 years are not immediately obvious to a lot of people. There are several reasons for this, but for this article the one we will point to is the industry has relied on a steady trickle of people knocking on the door, seeking work because it is what I call a “legacy industry.”

It was always there, ready for people to come and join. And that’s what took place for decades. There was a time when opportunity was less, the industry paid well (inflation, the practice of over-valuing commodities, corporate price gouging, along with devaluing the construction industry have led to stagnant wages for DECADES), and it brought people en mass.

The outcome? The industry has become complacent in its recruitment. How complacent?

Extremely complacent.

This scenario has played out for decades, but over the past 20 + years, those who’ve paid attention have seen a dramatic shift. Why is this? What changes have taken place to bring the industry to this point? Are there things we can specifically point to that help us understand several variables and, ultimately, the complexity of the problem? Our next point, in fact, does.

 

Complacency in the Industry = Age Gap Now

Many in the industry operate under a false sense of security

 

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“You don’t want to work with your hands – work with your head.”

“The future is with computers and technology.”

“You have to go to college to get a good job.”

 

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Ever heard any of these? It could be that you were told this when growing up (I know I was). Perhaps you’ve heard others say them – or some variation. Maybe you’ve said them yourself.

Society has said some form of these for 20 + years now, and the result of this cultural indoctrination?

An entire generation (for the most part – Millennials) is absent from the construction industry. Ask those of us in the industry today, and this is where the demographics are:

25 – 30 year olds

50 year old +

People in their 30s and 40s are RARE in the industry as a whole. It’s also why they have the GREATEST OPPORTUNITY in front of them. It turns out, when you have 20 years of experience and 25 potential more years to give, you are HIGHLY VALUABLE.

What’s more,  I would argue that the ONLY real reason we’re seeing 25 to 30-year-olds getting into the industry now is that the cracks in the “you have to go to college to get a good job” narrative are TOO BIG TO IGNORE, anymore. It has less to do with any strategic recruitment done by the construction industry and more to do with young people telling their stories. People are using social media, documenting their plight – complete with crushing debt coupled with despair – and they are being heard.

It also doesn’t hurt that tuition debt stands at 1.77 Trillion, according to Lending Tree, either.

Oh, and lest I forget, need I remind the readers just 25 years ago, we were using dial-up to access the internet?

DIAL UP!!

Today? An entire economy has been created, with 70 BILLION being shared from YouTube IN THE LAST THREE YEARS ALONE. Check out this tweet I took a screenshot of, from Mr. Beast – the most successful YouTuber there is:

 

And that’s just YouTube! There are so many other websites, platforms, avenues, and opportunities on the internet it’s absolutely amazing.

And what do those of us in the construction industry default to? What do we say?

 

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“Those young people – they don’t want to work.”

 

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Age Gap Now = Experience Gap

Anyone in the industry can tell you the age gap is real

 

It’s nice to see those 25 to 30-year-olds breaking free from the economic slave model perpetuated for decades – but is it too late?

After all, they lack experience. And coming into the industry is one thing – having the experience, however, is another. And the industry needs both.

But this takes time, though – that, and intentionality – and the industry does not want to be the one (well, companies, really) to be intentional about training, mentoring, and raising up the next generation of tradesmen and women.

What happens next is predictable – even if it is lamentable: The rise in headhunting.

 

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Related: Read Headhunting – and It’s Increase in the Workforce

 

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Experience Gap = Greater Complacency

The experience gap is real – and growing

 

Those in the trades know this all too well. Every single company I’ve talked to – without fail, I might add – sings the same song and dance: we could grow by 15-20% IF we could find qualified, experienced people.

But guess what?

Those people you want – you know, the ones with 20 years of experience? They are ALL WORKING. They are one of the most valuable commodities out there today – and other companies know it, too.

What happens, then, is that companies realize they want/need/desire/seek that experience out – while at the same time do not want to spend any effort to recruit/train the next generation or change their culture that actually attracts people – so they do the same old, same old: post job openings online (Indeed, Monster, etc.) with one new, growing tool in their arsenal: Headhunting.

Head hunters is a slang term used for the recruitment industry. They search for your next candidate and that next employee likely came from somewhere else.

You’re elated and static since that person comes with the experience you’ve wanted.

But what’s good for the goose is good for the gander: Other companies are doing the same thing, and the possibility they will recruit (read: steal) one of your experienced employees is not just possible – it’s probable.

Therefore, instead of addressing our own unwillingness to train, recruit, and build a company culture that’s attractive – what do we do, instead? Stay lazy, offshore our recruitment to headhunters, and all we are really doing is increasing our recruitment issues and woes.

 

***NOTE: For what it’s worth, this IS a tight labor market – and will continue to be one for years to come. You don’t get skilled tradesmen and women out of thin air; they have to be taught, mentored, and gain experience on the job. This takes intentionality, time, and the willingness of all parties involved to change their thinking.

For these reasons (and numerous others), we at The Wealthy Ironworker advocate that companies partner up with a union – no matter their trade. If you are an electrical outfit, perform pipefitting work, employ ironworkers, etc., you can, and would, have a willing partner in your success. In the coming years, this will prove a substantial move in the right direction. You can reach out to The Wealthy Ironworker, and we can help you begin the conversation.***

 

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Related: Read 10 Benefits of Being a Union Contractor

 

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Greater Complacency = Recruitment Issues Today

 

I’m hopeful of an operating change – but, if I’m honest, I’m not optimistic. People are creatures of habit and that includes the bad ones, too.

If people continue to do the same thing over and over, that greater complacency then turns into current recruitment issues today.

Why is that? What is it we are doing that turns into recruitment issues that continue to this day?

If you want to solve a problem, you need to understand as much of it as possible. Moreover, it doesn’t matter the size; this is applicable to all size problems – that includes the construction industry’s recruitment problems.

Except many in the industry do not take the time to understand the complexity surrounding this structural problem. Recall that an entire generation has been culturally brainwashed into thinking the skilled trades are deplorable and degrading. Remember that the internet has made a lot of people a lot of money. Oh, and then there is a growing overreliance on headhunting. And, worst of all, most of us in the industry and older – believe younger people do not want to work.

Where does that leave us?

In a systematic rut that adds to the recruitment industry woes of today.

 

Recruitment Issues Today = Retention Problems Tomorrow

There will come a time when it doesn’t matter how much you pay people

 

Now we get to the heart of why I began to write this article in the first place. Simply put, the recruitment issues we face today will become the retention problems of tomorrow.

How? I’ll explain.

Because the industry has been very complacent, unwilling to acknowledge the severity of its problems, and explore new ways to attract talent, they continue to do the same old same old.

As a result, the recruitment issues will continue and when the latter half of the baby boomers retire (in the coming decade), the industry will REALLY feel the shortage – projected to be somewhere between 2 to 3 million.

What’s more, that is JUST our projected shortage – which is, those retiring and their replacements. That doesn’t address the infrastructure investment we see (and DESPERATELY need), the manufacturing onshoring, or normal GDP industry growth.

Since we are not being creative during this turmoil, there will be a greater reliance on those already in the trades – and that reliance is likely to turn into burnout. And burnout has some serious implications.

First, there are going to be people who will learn the hard way The Power of NO (article to come), but learn it they will. There are others who will simply decide that even with the abundance of opportunity in the trades with the shortage (and there most certainly will be), they will decide to move on. And then there are others who, as they feel the burnout, are poached by other industries.

If you think headhunters only exist in the construction industry, you have another thing coming.

Headhunters exist in EVERY career field, and many in the skilled trades look appealing to other industries, ready and willing to recruit them.

In fact, this is already happening today. Government, Longshoring, Manufacturing, Engineering and Construction Management, Heavy Industrial – numerous industries are looking at the trades and salivating at the ripe recruitment field.

Mark my words:

 

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Recruitment Issues Today = Retention Problems Tomorrow

 

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Retention Problems Tomorrow = ???

 

Up to this point, the picture painted has been clear. Contractors, at least for the past decade or more, weren’t hiring apprentices and not being intentional about training up the next generation. Everybody wants someone with 20 years – but we are all working. Headhunting will NOT solve the problem – no matter how much people wish they did. This will cause detrimental problems in the next two decades – and the industry is headed full speed ahead toward uncharted waters.

Everything up until this point is almost an absolute certainty – unless, of course, these words inspire others to take action. It’s a seismic endeavor, but it is one that we can address – if we have the will.

What follows, however, is the most likely outcome from everything above.

With all of the opportunities available in the trades, all of the coming work, and the absolute requirement for infrastructure reinvestment, the implication is that the trades will not be able to meet all of the demands – and we will see a retraction – or, if you will, an implosion of the industry. What this looks like, how severe it is, its impact on the economy – and overall society, is a SWAG (Scientific Wild A** Guess).

I’m open to alternatives; I don’t have a crystal ball, after all. It seems the most plausible, though, given the preponderance of evidence.

 

Conclusion

 

My preference is that I deliver good news; I mean, who doesn’t like good news?

However, like the prophet Daniel, I can see the writing on the wall. The industry is set in its ways, unwilling to acknowledge the stigma against it, its own participation in how it’s perceived, or even its refusal to address the growing competition it faces when recruiting – and ultimately retaining – people.

The industry needs a wake up call – I hope this is one.

 

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