By Matt DiBara, Co-Founder of The Contractor Consultants & Owner of DiBara Masonry
Mass deportation policies could bring major challenges to industries that depend on immigrant labor, with construction and contracting being among the hardest hit. These sectors, already struggling with worker shortages, may face even greater challenges if such policies are enforced. This article explores the potential impact and strategies contractors can adopt to keep their businesses running smoothly.
How Contractors Are Likely to React
If you’re a construction or contracting business, you may already be grappling with challenges like hiring, retaining, and vetting workers – issues contributing to the ongoing labor shortage. Potential mass deportation policies could intensify these problems, pushing contractors to rethink their strategies. Finding ways to stabilize the workforce and maintain project timelines will be crucial for avoiding disruptions.
Strengthening Employee Verification Processes
A significant impact of mass deportation policies is likely to be a heightened focus on employee verification. Employers must ensure their workforce complies with immigration laws, including using the I-9 employment eligibility verification process. Stricter enforcement may lead to closer scrutiny of these processes, making compliance even more critical for employers.
To manage this, businesses may need to invest in compliance teams and advanced verification technologies and conduct regular audits to avoid penalties. For example, the E-Verify system, which allows employers to check the legal work status of new hires, is expected to become more widely used. In 2023, over 1.3 million employers used E-Verify, with 2,300 new employers signing up weekly.
Industries dependent on immigrant labor, such as construction, may need to work closely with legal advisors to ensure their hiring practices remain compliant.
Contractors and Contingent Workers: A Closer Look
Contractors and subcontractors, who often rely on immigrant labor, are on the front lines of these changes. Many are looking for ways to mitigate potential disruptions, such as ramping up efforts to recruit local talent. This might involve offering higher wages and better benefits and forming partnerships with staffing agencies specializing in compliance and legal workforce solutions.
Training programs offer another solution. Contractors can reduce reliance on temporary labor by equipping their current workforce with additional skills. In-house training programs can help contractors get entry-level workers up to speed more quickly and efficiently, creating a loyal and skilled workforce. By partnering with trade schools or community colleges, companies can develop training tailored to industry needs.
While these programs may require higher initial costs, they can lead to a more reliable, compliant workforce and help retain top talent in the long run.
The Role of Outsourcing Hiring
Delegating the hiring process to external HR experts can significantly reduce the strain on contractors. By working with specialized staffing firms or HR consultants, businesses can offload time-consuming tasks such as finding candidates, performing background checks, and ensuring compliance with relevant laws.
Outsourcing these functions allows contractors to access a larger, more diverse pool of talent, while benefiting from the expertise of professionals who understand the nuances of labor regulations and the specific needs of the construction industry. For example, certain staffing agencies focus exclusively on the construction sector, making it easier for contractors to quickly and accurately fill essential roles while maintaining full compliance with legal standards.
Actionable Focus Areas for Contractors
Contractors must focus on key areas to adapt to labor shortages and potential disruptions. Three important strategies include:
- Strengthening Recruitment Pipelines: Partnering with local job boards, trade schools, and workforce development programs can help attract domestic talent. Collaborations with colleges and training institutes also ensure individuals are prepared for skilled roles in construction.
- Improving Retention Strategies: Offering bonuses, career advancement opportunities, and competitive benefits can motivate employees to stay. Flexible schedules and pathways for growth are proving effective in retaining a reliable workforce.
- Ensuring Legal Compliance: Contractors must work closely with legal advisors to ensure their hiring practices comply with evolving regulations, reducing the risk of penalties or delays. Tools like E-Verify and regular audits can help verify employment eligibility.
Why Training Programs Matter
Investing in training programs offers a sustainable solution to labor shortages. By upskilling current employees, contractors can fill critical gaps in their workforce while reducing dependence on temporary labor. Companies that prioritize internal development create a culture of growth and stability.
For instance, on-the-job training for specific roles, such as machine operators or project managers, can shorten the time it takes to make employees productive. Cross-training workers to handle multiple tasks helps maintain workflow during unexpected labor shortages.
Benefits of HR Outsourcing
While in-house training is crucial for skill development, it may not be enough to address the growing challenges of labor shortages and hiring regulations in the construction and contracting industries. Outsourcing HR tasks can make a big difference by offering efficient and compliant solutions to these issues. By leaving the hiring process to experts, you can focus on building your business while they handle these time-consuming tasks.
Companies that specialize in this service will help manage every step of the hiring process with care and expertise, helping contractors build strong and reliable teams by addressing key areas such as:
- Easy Candidate Screening: Careful review of resumes and pre-screened interviews ensures you only meet the best candidates, saving time and effort.
- Complete Verification: From background checks to ensuring all legal requirements are met, outsourcing guarantees everything is done right.
- Clear and Flexible Services: Simple and flexible hiring options, whether you need temporary workers or leadership roles, tailored to your business needs.
- Full Recruitment Support: From writing job ads to managing interviews, every aspect of the recruitment process is handled so you can stay focused on your work.
Partnering with the right HR outsourcing experts, such as The Contractor Consultants, can make hiring simpler, faster, and more effective. With the proper support, you can find top candidates, stay compliant, and focus on what you do best: growing your business.
Conclusion
Mass deportation policies pose significant challenges for industries reliant on immigrant labor, particularly in construction and contracting. However, these challenges present an opportunity to innovate and strengthen workforce strategies. By prioritizing compliance, investing in local talent, and fostering employee retention, contractors can build a resilient workforce ready to weather future disruptions.
While the road ahead may be uncertain, businesses that adapt proactively will not only survive but thrive. Contractors who embrace flexibility, creativity, and resilience will shape the future of the industry.
Growing up in a family of masons, Matt DiBara’s passion for the construction industry was instilled in him from a young age. At just nine years old, Matt began working alongside his father, learning the importance of a strong work ethic and commitment to craftsmanship. As he matured, Matt’s admiration for his father’s dedication and the challenges faced by contractors inspired him to co-found The Contractor Consultants. This innovative company aims to revolutionize recruitment for contractors and help construction companies embrace modern technology, improving their operations and work-life balance. Their services, including a comprehensive 63-module Contractor Hiring Course and an Outsourced Hiring Service, support contractors in building better teams and enhancing work-life balance. In partnership with Indeed, ZipRecruiter, and Angi, The Contractor Consultants offer efficient recruitment solutions for the construction industry.