Over the next few months, we will likely see a pattern of states expanding and contracting their reopening plans due to Covid-19. As the development of a vaccine continues, each state is figuring out how they can keep the virus under control while also returning to some level of normality.
Despite widespread unemployment, many small businesses as well as the service industry, are having a hard time filling jobs as they try to reopen. One of the most affected sectors is construction. The Associated General Contractors of America found that more than half of all general contractors in the U.S. are having a hard time filling much-needed craft positions.
The construction industry has long suffered from a shortage of skilled labor. While Covid-19 may have exacerbated the problem in some ways, it has also highlighted some solutions for the industry as a whole.
Why Do Construction Workers Not Want to Return to the Job Site Right Now?
Understandably craft workers with families have legitimate safety concerns. Many are reluctant to return to work when building sites have been the source of many small breakouts of Covid-19. But there are ways that you can reassure your workers, by introducing strict measures to make your site biosecure:
- Provide adequate Personal Protection Equipment (PPE) and make it mandatory on site at all times.
- Introduce mandatory training about PPE and virus transmission.
- Temperature checks at the site's point of entry
- Hand sanitizer readily available throughout the site
- Strict cleaning of any communal areas
- Have a track and trace policy: If an employee becomes sick make sure they self-isolate, then test and isolate any other colleagues they worked with.
Before Covid-19 Labor Shortages Were a Problem in Construction
Even before Covid-19, labor shortages were nothing new. Construction has been struggling with a shortage of skilled workers and a dwindling labor force since the recession caused by the global financial crash of 2007-2008. Even when the economy (and construction industry) eventually recovered there weren’t workers available to take the jobs. A large number of that workforce were baby boomers who had since retired, and many other workers had already moved on to different industries.
How Has Construction Traditionally Dealt with its Labor Shortage?
The only solution for industry leaders has been to look at different labor markets for new workers while also streamlining the resources that they already have. Traditionally this has been done by:
Embracing New Technologies
Using new technologies helps to attract the Gen Z and millennial workforce, who intrinsically understand tech and prefer to work for companies who deploy these tools well. Embracing new technology not only helps you attract bright new candidates, it also streamlines work processes and improves communication between the back office and your labor force. A well-run site is a huge pull when attracting and retaining key staff. If you are already using innovative construction techniques and software, ask yourself, how will your candidates know that? Are you using the right platforms to advertise your tech-literate jobs? Where are those Gen Z’s looking for their new opportunities and do your job advertisements speak their language?
If you are thinking of modernizing some of your back office processes, check out Hourly. It streamlines small repetitive tasks such as data entry and it even gets rid of the need for paper timesheets. It’s great for your Gen Z workforce who would rather swipe than scribble.
Outreach to New Labor Markets
More Americans are getting a college education than ever before. A college education has traditionally been seen as the best route to a lucrative career. As college enrollment has been on the rise, traditional apprenticeship programs in construction have dwindled. However, there has been a concerted effort by The Association of General Contractors of America (AGC) and construction companies to re-introduce these apprenticeships. They have then used outreach programs in high schools to help raise awareness on the benefits of working in the construction industry. If your company is not already running an apprenticeship program, perhaps this is now the time to start.
How Has Covid-19 Affected Construction Recruitment?
Although less young people have been entering the construction sector, that might be about to change with Covid-19. The crisis has created a recruitment opportunity for construction. There is now a whole generation of skilled graduates who will be looking for work in the worst economic downturn of the century. They may have to drastically rethink their careers. It’s important that your company helps these graduates understand how working in construction can support them in achieving their career ambitions.
Can You Do Further Recruitment of Bilingual Supervisors?
The construction industry has the largest language gap between skilled workers and managers on-site, according to a 2019 report from the American Council on the Teaching of Foreign Languages (ACTFL). And 53 percent of construction managers surveyed expect an increase in the demand for foreign language skills on the jobsite in the next five years. If you are able to employ bilingual supervisors, they can assist with outreach to communities to recruit new team members as well. According to the Occupational Safety and Health Administration (OSHA), the use of bilingual supervisors also greatly reduces the number of mistakes and accidents that happen due to misunderstandings. This can help reduce costly lawsuits and workers’ comp claims.
What Candidates Are You Overlooking?
Consider the large pool of corporate middle managers who may have recently found themselves collecting their severance package. Those who have worked in supply chain or project management have easily transferable skills that can help run a construction site. You might also consider the female workforce, who are a growing part of the industry.
Is it Time to Try Something Entirely New?
In recent years a new way of running a construction site has been developed in Europe called Lean Construction. A leading British expert, Dr. Peter Court, advises American companies on best practices for Lean Construction. Put simply he explains:
“Lean construction transforms a traditional construction site into a modern process of assembly. Much of the build can take place off site in a more tightly controlled and cost-effective environment.”
The more controlled and efficient build negates costly on-site variables. Issues with materials, delays or even having enough skilled labor to finish a task are minimized or avoided completely. Curious about other construction trends emerging abroad? Check out UK Construction Blog.
Adaptation is Key
The construction businesses that survive this crisis will be the ones that have found new, adaptive, and safer ways of working through the pandemic.
1. Introducing Yourself
Your introductory email needs to pack a lot of information into a small package. Try something like this:
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Hello Jane,
My name is John Doe and I work for ABC Agency, where we provide business insurance policies to many of Dallas' rockstar small businesses.
Congratulations on your new business, Jane's Bakery. Are you wondering if you have all the insurance you need? Or if your policies will really cover you in a pinch?
At ABC Agency, we pride ourselves on providing robust, comprehensive coverage options to companies like yours with flexible, pay-as-you-go plans.
Are you available this week to talk more about how we can help? I can help you find the most affordable rates and the best policies out there.
I look forward to speaking with you soon.
Cheers,
John Doe
2. Presenting a Quote
Once you've met with your potential client, a quick reply with their quote will get the ball rolling.
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Hi Jane,
Thanks so much for meeting with me this morning. I loved touring Jane's Bakery–I can still smell those delicious chocolate chip cookies baking! You have a great location, and I'm sure you're going to do great on Front St.
After reviewing my notes, I've pulled together an insurance quote for you (attached). I recommend a business owner's policy. A BOP includes several insurance products in one: liability, property insurance, and business interruption insurance. It offers robust coverage at a competitive price.
I'll call you in a few days to see what you think about this insurance plan. In the meantime, if you have any questions, don't hesitate to email me or call me at [phone number].
Again, thank you for your time today. I look forward to working with you in the future.
Cheers,
John Doe
3. Thanks for Purchasing a Policy
Gratitude is important! It's never a bad idea to thank your clients for their business.
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Hi Jane,
Thank you for choosing a business owner's policy with ABC Agency. We know it's so important to get the right coverage for your business, and we are honoured you've placed your trust in us.
We're excited to work closely with you, and our no. 1 goal is to make sure you're business is always protected.
Do you have any questions? We are here to help. Reach out whenever something comes to mind.
Thank you again for choosing ABC Agency to insure Jane's Bakery.
Cheers,
John Doe
4. Welcome Email
A welcome email helps clients feel like you're there to help–and can softly pitch other insurance products you offer.
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Dear Jane,
Welcome to the ABC family! We are thrilled to have you as a new customer and can't wait to meet all of your insurance needs.
As an independent insurance agency, we work with multiple insurance providers to find the best coverage options for all our customers. If you need any other type of insurance–like [include additional offerings unique to your agency, like life insurance, health insurance, home insurance or anything else]–we can help you too.
Do you want to discuss any of these policies?
Cheers,
John Doe
5. Introducing a New Product
A happy client may want to expand their business with you.
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Hello Jane,
I hope all is well with you and Jane's Bakery. I stopped in yesterday for a blueberry muffin and coffee, and they were delicious. I loved the hint of cinnamon in the muffin! Was that your idea?
I wanted you to be the first to know we are now offering commercial vehicle insurance to our policyholders. Auto insurance for your catering vans is super important since your personal car insurance won't cover them.
We're offering this insurance coverage solely to our current business clients at the moment and have some very competitive rates.
Would you like me to work up a quote for you?
As always, thanks so much for being a part of the ABC family.
Cheers,
John Doe
6. Asking For Referrals
Once your relationship is established and comfortable, let your clients help you grow.
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Hi Jane,
You've been a valuable member of the ABC family for two years now, and we so appreciate your business–not to mention the muffins you supply for our monthly meetings!
Because you are a valued policyholder, I wanted to ask a quick favour. I know you are active in the local Chamber of Commerce, and I'm hoping you might know some colleagues who would benefit from working with our insurance company.
Referrals are one of the most effective ways to connect with our community since people really trust their friends, family and colleagues. Is there anyone you'd recommend I speak with?
Remember that in addition to business insurance products, we offer everything from life insurance policies to pet insurance.
As a thank you for your help, we will send you an Amazon gift card of $100 when your referrals buy insurance from us.
Thanks so much for your help!
Cheers,
John Doe
7. Policy Renewal
If your client needs to renew their policy with you, send an email like this:
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Hi Jane,
I hope you're doing well! What a year it's been—from being listed as one of the top 5 bakeries in Dallas to being an official vendor for the city—you have so much to be proud of.
Just a heads up that your business owner's policy is up for renewal soon and will expire on June 15, 2023.
If you're still happy with the coverage, we can easily renew it for you.
Do you have some time to chat this week?
Looking forward to serving you again!
Cheers,
John Doe