The poor image of the construction industry makes it difficult to attract skilled labor. In a report by the Business Round Table (BRT), a shortage of skilled construction workers was cited as the primary problem facing the construction industry in the late 1990’s. Lack of continuous employment, low real wages, and a lack of a clear path are causing workers to leave construction in search of jobs in other industries. Other industries are more attractive because they have environments that are more pleasant, cleaner, and safer. In order to retain current workers and to recruit new workers, it is necessary to find ways to improve their situations and add value to the industry.
Background
Tremendous challenges face the construction industry in attracting and maintaining a qualified workforce. The CCIS Executive Advisory Board, CII member companies, and the Business Roundtable (BRT) have recognized these challenges. While most responses have been extremely short term and tactical in nature, the CCIS workforce thrust area was formed to take a more measured approach. Although not started until ten months after the initial funding, the group has achieved a high level of activity. It is led by Professors Tucker and Haas and enjoys strong participation and support from Professors Glover, Borcherding, and Kelly. Its purpose is to help develop for the industry a better understanding of the underlying mechanics and dynamics of workforce development and utilization, while also identifying the impact of industry trends on the workforce.
Because of increasing concerns regarding worker recruitment and retention, the Workforce thrust enjoys a high level of industry involvement on its Steering Committee. It consists of thirteen industry leaders, including the president of the United Brotherhood of Carpenters and Joiners of America, the chairman of a multibillion dollar merit shop contractor, the director of the National Center for Construction Education and Research, and director-level representatives from leading owner and constructor firms from around the nation. The Steering Committee meets regularly in Austin to review and provide direction to the project. To select study areas, the project team has worked with its Steering Committee to identify critical workforce challenges facing the industry and associated research topics.
Several summary reports have been released on Workforce thrust research, and additional reports are near release. As with the other Sloan reports, they have been distributed widely to study participants, to CII members, and to the academic community. Steering Committee members have remarked favorably on the content and potential impact of the reports. Archival journal articles have been submitted and are beginning to be accepted for publication [Burleson 1998, Rodriguez 1999, Allmon 2000]. Conference papers have been published as well [Goodrum 2000]. Several more are in progress. Results have been widely presented to industry members through venues such as the CII Board of Advisors meetings and to the academic community through meetings such as the ASCE Construction Congresses.
Summary of Phase I and II
The shortage of skilled construction workers in the US is a growing crisis that is only ameliorated by the recent economic downturn. Lack of investment in training and competitive pressures that drive the shortage remain as serious challenges. CCIS initial efforts in addressing this crisis involved several studies:
Developments in Multi-Skilling: Multi-skilling is being used extensively in construction, yet its practice has not been formally or analytically justified. CCIS research has resulted in several articles ranging topically from recommendations for implementation of multi-skilling within a firm to multi-objective optimization for allocating a multi-skilled workforce to a particular project.
Impacts of Technology on Labor Productivity: Statistical analysis of the impact of technology advances on construction labor productivity and wages, between 1970 and 1998, at the activity level, confirmed that construction technology advances in general serve to improve productivity and relieve wage pressure. However, increased IT skills usage can lead to increased wages and potentially more responsibility.
Two-Tier Workforce Concept: Recognizing that higher wages and a career path are the primary drivers to attract and retain a skilled workforce, the limitations of piecemeal solutions quickly became apparent. Short of major legislative action, a comprehensive yet revolutionary approach was required. CCIS researchers met with industry advisors, convened two major workshops, and worked internally to develop what emerged as the Two-Tier Workforce Strategy.
As previously mentioned, Tier II represents a forward-thinking strategy that emphasizes multi-skilling, management skills for craftsmen, and high-value-added workplace concepts that collectively can lead to significantly more productive workers that are worthy of increased wages. Conversely, the Tier I management strategy is about effectively utilizing existing lower skilled and transient sectors of the workforce. While Tier II should eventually dominate, Tier I will be a complementary strategy given the highly cyclical nature of the industry.
Analyses thus far have revealed that: (1) the metrics developed to assess degree of Tier I and Tier II implementation are valid, (2) the craftsmen are highly receptive to the specific elements of Tier II implementation, and (3) there is tremendous room for improvement in making managers and workers more effective.
Through conference presentations, hundreds of industry leaders are now familiar with the concept and the response has been tremendously encouraging. Tier I and II implementations now need to be correlated with project success and workforce retention metrics (which is discussed further under Plans for Phase III).
Plan for CCIS Workforce Thrust Phase III
Phase III workforce activities will focus on four related areas: (1) continuation of the Two Tier Work Force Strategy data collection effort to refine metrics and to substantiate the relationship of the strategy to project success and skilled workforce retention, (2) launching of two Tier II pilot projects, (3) development of broad-scale implementation strategies, and (4) development of an approach for sustained workforce research and knowledge transfer.
