Unique Industry Challenges
It is well understood that recruiting in the construction and associated industry sectors requires a tailored, strategic approach due to its special demands, significant skills shortage notwithstanding the unique cultural characteristics that most people associate with this sector.
These costs associated with “rough and ready”
These characteristics are often described in terms of “rough and ready”, tough, fast-moving, back breaking and relentlessly pressured.
Organisations in the sector are not often recognised for polished leadership / management and especially not seen as polished in their recruitment practices. The direct financial consequences of this “rough and ready” approach can be huge.
The cost of hiring the “wrong” person
The cost of hiring the wrong person in any sector can amount to three to four times the employee’s annual salary and includes direct financial expenses like severance pay, recruitment fees, training, and lost productivity.
Indirect costs are also significant, such as damage to team morale, lowered productivity, weakened company reputation, and the time managers spend dealing with performance.
According to Oxford Economics and Unum, the average cost of taking on an employee (on a salary of £25k) is £30,165. This incorporates an average spend of £5,433 on recruitment and absorbing the loss of productivity, while training the new employee to a level of proficiency, taking an average of 28 weeks!
Hidden Costs and Other Consequences of Bad Hires
Of course, other ‘hidden costs’ may be incurred as a result of a poor hiring decision, that are not so easily quantifiable. For instance, the new starter may display toxic behaviours that hurt their colleagues’ morale and wellbeing.
Or, they may simply not fit in well with the team and company culture. These are all factors that can damage a business’ culture and employer brand, as well as hurting them financially.
Read more: www.agencycentral.co.uk
Thorough vetting
To avoid these costs, thorough vetting, culture add assessment, and careful consideration of values and attitude during interviews are crucial.
Easier said than done!
Providers (there are 893 construction recruitment agencies in the U.K.) offer a huge array of interview methodologies, tools, instruments, questionnaires, tactics, tricks and approaches that promise to help you find the right person.
Construction Industry Research Points to Specific Solutions to Improve Recruitment
Here are the top 3:
- Focus on Retention:
Address issues like low pay, poor conditions, and burnout to keep experienced workers in the industry. - Invest in Training and Development:
Provide ongoing training and opportunities for upskilling to meet evolving digital and technical skill demands. - Improve Work Culture:
Implement supportive mental health programs, regular check-ins, and improved safety measures to foster a positive work environment.
Construction / Health and Safety industry clients I am currently working with (notably Havio) understand the importance of the top 3 and as a result they:
- Focus on retention from day 1
- Invest in a highly relational (friendship focused) person-centred culture
- Apply world-class temperament and personality profiling instruments to achieve rare insight on candidates
- Spotlighting the importance of authenticity and honesty whilst insisting upon it
None of the above come cheap.
The alternative failed strategies cost much, much more in the short, medium and long terms.
Finally, AI’s role in recruitment
Recruitment is a core activity within an HR department’s remit and is therefore relevant to many CIPD members. Areas where AI could be used in recruitment include targeted job advertising, CV screening and auto-transcriptions of interviews.
As AI is being increasingly embedded in the recruitment process the pace that it’s evolving could leave people professionals behind when it comes to using it responsibly.
Furthermore, the line between advanced technology and AI can be blurry. People professionals can and should play a role in reviewing government guidance on how to use AI responsibly in recruitment.
As AI is used more frequently by organisations and within HR teams, it’s essential that guidance should be practical for the people who need to use it.
Read more: www.cipd.org
Give me a call on 07850 143 209, write to me at email@dannymcguigan.com or connect with me on Linkedin.
