In today’s construction industry, finding skilled, reliable workers often feels like searching for a needle in a haystack. With high turnover rates, rising expectations from job seekers, and pressure to meet project deadlines, employers are grappling with significant challenges in workforce recruitment and retention.
Dr. Larry Kokkelenberg, a veteran in organizational development with over 40 years of experience, has witnessed firsthand the costly consequences of hiring mistakes. A former entrepreneur and author of two books on organizational development, he shared his insights during a 2023 education presentation at CONEXPO-CON/AGG, focusing on strategies to attract top talent and build a committed workforce.
Those insights are now available in a free downloadable e-book from CONEXPO-CON/AGG.
The Cost of the Wrong Hire
Recruiting the wrong person for a skilled construction role can bring long-term challenges, including high turnover, increased training costs, and project delays. According to Dr. Kokkelenberg, effective hiring starts with identifying the traits and habits of successful employees to create a framework for interviewing and selecting ideal candidates.
This backward approach to recruitment, outlined in the free online e-book, Hiring and Retaining Good Employees: 4 Critical Steps, helps companies attract individuals with the right technical skills, safety competencies, and a mindset for teamwork. When companies hire the right people, they not only reduce turnover, but also foster programs where existing employees recommend candidates from their networks.
“When employees communicate to their friends and family about good pay, great management, and growth opportunities, they help develop referral programs,” said Dr. Kokkelenberg. “This method of getting the word out to local candidates is particularly useful and fills open employment opportunities with quality candidates.”
Leveraging Outreach and Training
Dr. Kokkelenberg stressed the importance of proactive outreach to find qualified talent. Initiatives such as summer internships, partnerships with community colleges, soliciting the Department of Labor, and working with the SkillBridge Program for transitioning service members, through the Department of Defense, helps employers build pipelines of skilled workers. Digital platforms, local job fairs, and community partnerships also play a role.
However, the construction industry saw extraordinary labor shortages throughout 2024. According to the U.S Bureau of Labor Statistics, in September 2024 the unemployment rate was 3.7%, and the construction industry had 288,000 open positions.
In a recent Workforce Survey Analysis by the Associated General Contractors of America (AGC), 94% of respondents reported having openings for skilled labor positions in the construction industry, a 9% increase from 2023.
“It’s hard to get the exact experience you want today,” Dr. Kokkelenberg said. “More organizations will need to invest in training, once they hire the right person.”
Further, the AGC survey noted that 42% of respondents increased spending on training and development, while 61% reported increased pay rates for hourly skilled labor, just within the last year. These workforce strategies were developed while 62% reported that available labor is simply not qualified to fill skilled roles in the competitive construction industry.
Employee Retention Starts with Employer Accountability
Once the right people are hired, retention becomes a shared responsibility. Dr. Kokkelenberg argued that salaries, work-life balance, job security, and leadership opportunities are critical to keeping employees engaged.
“If employees see no growth opportunities or feel undervalued, they’ll look elsewhere,” he said.
Retention also requires investment in training that goes beyond basic requirements. Employees who feel valued and see that their employer is invested in their development are more likely to stay.
“Training should show employees they are part of the company’s future,” Dr. Kokkelenberg added. “It’s not just about compliance; it’s about demonstrating their worth.”
Continuous Recruitment: A Strategy for Stability
Even with positions filled, Dr. Kokkelenberg advised companies to maintain an ongoing recruitment strategy to prepare for unexpected turnover.
“You are hiring and looking for good people all year long,” he said. “Even when all your crews are together, you’re still looking for good people.”
Employers must also address internal factors, such as pay scales, work environments, and opportunities for advancement, to minimize turnover and build a stable workforce.
The construction industry’s labor shortages remain a pressing issue, but as outlined in Hiring and Retaining Good Employees: 4 Critical Steps, the right strategies can make all the difference. From effective interviewing practices to strong onboarding programs, employers can create a workforce that not only meets today’s demands but drives long-term success.
For additional insights from Dr. Kokkelenberg’s presentation, download this free E-book today!
About Dr. Larry Kokkelenberg
Dr. Kokkelenberg holds a doctorate with dual specializations in clinical and industrial psychology. He brings a multifaceted background as a successful entrepreneur, having founded and led several companies, including an asphalt paving firm. In addition, he has extensive experience as an organizational consultant, working across both private and federal sectors, including serving on a White House council.
Dr. Kokkelenberg is also a published author, contributing to the field of organizational development with two notable books. OD for the Accidental Practitioner provides guidance for individuals who find themselves unexpectedly navigating the field, while its companion volume, OD for the Intentional Practitioner, offers a strategic approach for those pursuing organizational development as a deliberate career path.
About CONEXPO-CON/AGG
Held every three years, CONEXPO-CON/AGG is the must-attend event for construction industry professionals. The show features the latest equipment, products, services and technologies for the construction industry, as well as industry-leading education. CONEXPO-CON/AGG is owned in partnership with NRMCA, NSSGA and AEM and managed by AEM. The next CONEXPO-CON/AGG will be held March 3-7, 2026, in Las Vegas, Nevada. For more information on CONEXPO-CON/AGG, visit https://www.conexpoconagg.com.
About AEM
The Association of Equipment Manufacturers (AEM) is North America’s premier trade organization representing off-road equipment manufacturers and their value chain partners. With a history spanning over 130+ years, AEM serves more than 1,100 member companies across 200+ product lines in multiple sectors, including construction, agriculture, mining, utility, and forestry. AEM supports an industry that contributes approximately $316 billion annually to the U.S. economy while sustaining 2.3 million jobs. Through advocacy, market intelligence, and industry collaboration, AEM works to advance the interests of equipment manufacturers and their partners in the global marketplace.