Construction Contractors Will Always Be in Need. Here’s How to Attract Them
Labor shortages. It’s a problem that’s been plaguing the construction industry for decades, yet construction contractors are always in need.
Finding qualified construction contractors and subcontractors to complete the needed work shouldn’t be difficult, considering the potential for six-figure salaries that these positions hold [Fox Business]. Yet, according to a report by The Associated General Contractors of America and Sage Construction, 78% of construction firms report difficulties finding qualified contractors to fill open positions, and an even higher percentage report labor shortages as their number one concern [ACG].
Employee retention is of the utmost importance in a world where it’s so difficult to find qualified workers. So what is it about the construction industry that makes it so hard to find and keep skilled laborers, and what can construction firms do to attract them?
Why Are Qualified Construction Contractors Hard to Come By?
Demand for new construction projects is high. But labor shortages make it difficult for construction firms to complete projects on time. This creates a domino effect. It keeps further construction projects from starting on time. It increases the risk for lenders and creates problems in the payment schedule, often resulting in employees being paid late. And in turn, new workers hesitate to jump into a line of work that is notorious for lots of overtime and not getting paychecks on time.
Late payments are a huge deterrent for new employees in the construction industry. Over 43% of contractors report being paid two months late, with 30% waiting even longer to be paid [For Construction Pros]. You’d never catch employees in another industry accepting payment terms like that.
How to Attract and Retain Construction Contractors
The ACG report highlighted steps construction firms are taking to attract construction contractors, including 59% of firms raising the base pay rates, and others offering signing bonuses, and increasing training for new employees [ACG]. But raising pay rates and offering bonuses won’t make any difference until they solve the problem of delayed payments.
Some construction firms might say “but this is the way things have always been done.” That doesn’t make it acceptable. New technology has reinvented the way construction payments are made, making inefficiencies and late payments a thing of the past.
Digital payment solutions give lenders real-time access and insight into each loan so that they can rest assured that everything is in order. They automate payments so they are made on time, every time. Contractors can rest assured that draws will be made on schedule so they can pay their employees and suppliers without missing any due dates. And there’s no better way to keep your contractors and subcontractors around than paying them on time.
CoFi Is Here
Having trouble paying your subcontractors on time? CoFi is here to help. Our digital payment software was created to ease the pains of construction lending for both construction contractors and lenders. Say goodbye to outdated spreadsheets, late payments, and high employee turnover as you welcome in the new age of construction technology with CoFi. See how CoFi can help your business. Schedule your personalized demo today!