- Published on:
- Last updated: November 11, 2026
- 12 min read
Table of Contents
Introduction
Many construction businesses can resonate with the challenges of sustaining a sufficient, skilled workforce. The chronic construction labor shortage is no secret. As many as 92% of construction firms report having a hard time finding workers to hire, and 45% say these challenges even lead to project delays.
From a shrinking number of people entering the workforce to an increasing number of large projects, having the right number of skilled workers to confidently complete a project is becoming increasingly difficult. For many businesses, the labor challenge outweighs the challenge of finding new projects. Maintaining a strong workforce requires a focus on both finding skilled workers and retaining the quality workers you already have.
To maintain a healthy business, construction subcontractors must prioritize hiring and retention. By understanding how to hire construction workers, knowing where to find them, reflecting on which positions you need most, building strong internal hiring processes, and creating a positive work environment, you can stay on top of your construction staffing and ensure you are prepared to meet demand for available projects.
Key Takeaways
- Focus your pipeline on the highest-growth segments right now — data centers, power, air transportation, and infrastructure are where the strongest project opportunities are heading into 2027.
- Build pricing transparency and short lead times into your value proposition so contractors see you as a reliable partner when material costs are volatile and unpredictable.
- Get in front of contractors and subcontractors working in growing segments before Q4, since that's when firms lock in their plans and the suppliers already in their network get the first call.
- Lead with labor-saving and prefabricated products when you're positioning yourself to contractors — the workforce shortage makes anything that reduces time and labor on the jobsite a genuine competitive advantage.
- Tighten your own financial safeguards now by monitoring tariff impacts on your materials, shortening payment terms where you can, and maintaining a credit cushion to stay resilient through a higher-rate, higher-cost environment.
The Construction Labor Shortage and What It Means for Your Business
The construction labor shortage affects the vast majority of the industry, meaning your business will be competing to hire and retain talent from a very small pool of workers. To combat this labor shortage, your business must be able to build a management infrastructure that welcomes new talent and creates a comfortable environment where workers want to stay.
Why Skilled Construction Workers Are Hard to Find
Skilled construction workers are becoming harder to find because of an aging workforce, fewer workers entering the workforce, reduced migration from other countries, and a higher demand for large projects. According to the 2026 Commercial Construction Outlook, these factors are putting the most strain on construction labor forces:
- Aging workforce – As experienced workers grow older, they are retiring and leaving the industry, leaving open roles behind.
- Fewer new workers – As workers age out of the industry, fewer workers are entering the field to replace them.
- Changing migration policies – About 20% of subcontractors surveyed by AGC stated that increased immigration enforcement has reduced the number of professionals available.
- High demand – While labor has slowed, demand for construction projects remains high; even when subcontractors struggle to find staff, many large-scale projects are available that require an abundance of skilled labor.
How Labor Capacity Limits the Jobs You Can Bid
When your labor is stretched thin, you have less ability to bid on projects that you have the skills to complete. You can only bid on what you can staff, so workforce planning is a crucial part of business development.
If you are interested in bidding on a project that matches your trade, specialty, and service area, and you have the capacity to bid on it, you may have to withhold your bid if you do not have the on-the-ground labor to complete it. Maintaining a strong foundation of labor supports your bidding strategy by keeping your business agile and able to accept jobs that cross your path and feel like a good fit.
What’s Different About Hiring for Commercial Construction
Hiring for a commercial construction business often involves higher stakes and more expansive expectations than in residential construction, ranging from more extensive credentials to more in-depth safety training. Commercial subcontractors must have a detailed vetting process for their staff to ensure their team meets expectations for projects.
Credentials and Safety Requirements GCs Check
Through a subcontractor prequalification process, general contractors review team safety credentials, such as OSHA course completion and trade-specific certifications. Some important credentials to verify include:
- OSHA 10-hour card, required for most commercial projects
- OSHA 30-hour card, required for foremen, safety coordinators, and supervisory personnel
- Fall protection certificate, for workers performing tasks six feet above the lowest level of the project
- Additional certifications for specialized trades, such as confined space entry, scaffolding, or trenching
Safety requirements and preferred credentials may depend on the type of job as well as the preferences of the general contractor, project owner, and state laws. Because general contractors will often require this safety experience, it’s important that your team of workers can easily demonstrate their experience.
Site Access on Secured Projects
On secured projects, such as data centers or government facilities, employees may need to meet additional requirements, which can include:
- Background checks – Staff will likely need to complete a background check and fingerprinting to verify a lack of criminal history for secured projects.
- Screening – Some jobs may require additional screening, like drug screening, depending on the project owner’s requirements.
- Security clearance – For high-security government projects, additional clearance may be necessary to enter restricted job sites.
For government projects or those that maintain especially high security standards, subcontractors should verify before bidding what criteria may be expected of their team, as additional requirements may limit the workers available for the job.
Union, Open Shop, and Prevailing Wage
Commercial subcontractors must consider what represents a reasonable wage as they aim to advertise competitive pay to prospective workers. Consider the following influences as you determine how to set pay for your team:
- Union wages – Negotiated union agreements typically set standardized wage scales and defined benefits between a construction business and its employees.
- Open shop – A non-unionized workplace where subcontractors set wages and benefits they are willing to offer.
- Prevailing wages – Legally mandated minimum pay for publicly funded projects, as mandated by the Davis-Bacon Act.
Keep in mind that rules may often vary according to state laws and signed contracts. The wages you will be able to offer will depend on the workers you are interested in hiring and the type of project you are working on.
Plan Your Workforce Before You Bid a Job
Hiring should always be a well-planned and thought-out process. Consider your team’s current structure, your flexibility, and your biggest needs to ensure that your hiring process aligns with your business’s future direction.
Match Hiring to Your Backlog and Bid Pipeline
While hiring is important for building a reliable workforce, ensure your work pipeline is sustainable before committing to new employees. Relying on a new employee only makes sense when you know you will benefit from the role long-term in relation to the amount of work you will be able to sustain.
Consider performing a full calculation of your bid-hit ratio, current backlog of work, expected awards, and headcount by month so that you have a clear vision of how many labor hours you will need to fill. Also think carefully about the types of projects your business handles most often, so you hire for the positions you need most as you take on larger projects.
Types of Construction Workers on a Commercial Crew
Commercial construction staffing requires several roles to keep work flowing smoothly. From on-the-ground workers like the laborers and foremen to the administrative positions like the superintendent and estimators, a commercial construction project involves the work of several important roles.
Role | Job Description | Typical Credentials | Where They Come From |
Laborer | Carries out manual tasks such as digging, clearing debris, mixing concrete, and assisting tradespeople | No formal credentials needed, but an OSHA 10-hour card is a common requirement | Usually hired without extensive prior experience as an entry-level role |
Apprentice | Learns a skilled trade by working alongside experienced tradespeople to expand their knowledge | Registered apprenticeship through a sponsor, usually 3-5 years with a set number of hours and instruction | Union halls, trade associations, employer sponsors, or registered apprenticeship programs |
Journeyman | Works independently as a fully qualified tradesperson to perform skilled tasks and may train apprentices | Completion of an apprenticeship and passing a state or trade licensing exam | Promoted from the apprenticeship program after completing required hours and training |
Foreman | Leads a crew on a specific job site, assigns daily tasks, monitors work quality, and reports on progress | Usually several years of experience with leadership training and OSHA 30-hour certification | Promoted from journeyman or lead positions based on skill, reliability, and leadership ability |
Project Manager | Manages subcontractor projects, including trade-specific budgets, schedules, labor, materials, and coordination with general contractors. | Experience in construction or trade management; a relevant degree may be preferred but is not always required. | Often promoted from foreman, estimator, or project engineer roles. |
Estimator | Reviews plans and specifications, calculates labor, material, and equipment costs, and prepares competitive bids for trade-specific work. | Strong knowledge of the trade, blueprint reading, and estimating software; a degree is not always required. | Often advances from skilled trade, estimating assistant, or project coordination roles. |
Full-Time, Seasonal, or Temporary Construction Workers
Construction businesses typically have several staffing options available to them between temporary, seasonal, and full-time workers. While full-time workers are the easiest to have on hand for consistent specialty projects, a temporary worker provides more flexibility for one-off projects without the overhead. Ultimately, each type of construction worker has its own benefits and level of commitment depending on the overall goals of your construction business.
Type of Worker | Cost | Commitment | Ramp-Up Time | Best Use Case |
Temporary | Hourly wage plus a markup for the staffing agency | Per-Project | Considerable training needed to get workers up to speed on your processes | During peak schedules with high demand and a strained workforce |
Seasonal | Hourly wages for the project plus any costs incurred from hiring or markup | For Several Months at a Time | Moderate, as they will need extra support for the first few projects | During the busy season where extra support for your main team is beneficial |
Full-time | Costs for the hourly wages for the project plus additional overhead, like benefits and hiring costs | Permanent | The least amount of ramp-up time as workers are already familiar with key processes | Specialized, long-term, and safety-critical work |
How to Hire Construction Workers: Step by Step
Hiring construction workers involves advertising the job to stand out to potential employees, knowing where to look for talent, and having a clear process for screening and onboarding workers. Consider these tips for hiring construction workers.
1. Write a Job Posting That Gets Applicants
With many other businesses also posting jobs, it’s important that you create a posting that grabs attention and includes all the information an applicant would want to know upfront. The most important elements of a job posting include what’s expected of them, what qualifications are required, and the compensation they can anticipate.
Include the following information:
- Pay range
- Schedule
- Project types and trade specialties
- Travel requirements
- Tools provided
- Advancement path opportunities
Write the job posting in a straightforward manner, rather than in overly corporate HR language. Authentic, relatable language is most likely to resonate with workers looking for opportunities.
2. Know Where to Find Construction Workers
Knowing where to look for a quality candidate helps take weight off your search and the hiring process. Consider some of the following avenues for finding talent:
- Employee referrals – Best when you have a trusted employee who you can rely on to recommend talent that would be a good fit for your team.
- Trade schools – Creating a system for holding apprenticeships for recent graduates can help you find new talent and provide training in your unique processes to potentially foster a long-term employment relationship.
- Staffing agencies – Staffing agencies can help construction businesses find quality workers when they need temporary support on a project, but some may offer the opportunity to hire workers full-time.
- Union halls – Union halls can serve as a hub that connects skilled union members seeking work with contractors seeking temporary or permanent support.
Sometimes programs can help you connect with skilled construction workers looking for opportunities. For example, Helmets to Hardhats creates a pipeline for veterans seeking opportunities in the construction industry in various unions and trades.
3. Prepare Effective Screening and Interviewing
Develop a screening and interviewing process that can be repeated as you take on new candidates. It’s advisable to have a template of basic questions you can use and then customize that list of questions according to the position you are hiring for.
Some questions worth asking in the process include:
- What types of projects do you have experience in?
- What safety credentials do you have?
- What trade licenses or certifications do you have?
- Does your experience involve commercial projects, residential projects, or both?
- What is your typical availability relative to the project’s schedule?
- How do you handle workplace safety protocols?
These are just a few foundational questions, but it’s best to adjust and change them according to the demands of the specific role. In addition to the interview questions, a paid working interview or skills test may be beneficial for fully assessing workers applying for a job that requires specialized skills.
4. Know What to Verify Before Day One
Before your first day working with the employee, it’s important to verify their credentials and ensure they’re a good fit for the role discussed. You should verify some of the following criteria, depending on what’s expected of the new position:
- Certifications, like OSHA 10 or 30
- Trade licenses, where required
- Employment eligibility
- Drug and alcohol policy awareness
- Driving record, when required
- Professional references
Keep in mind this list of criteria is simply a reference and will generally depend on the role, your state’s laws, and your company’s expectations based on the job to be completed.
Construction Staffing Agencies: When They Make Sense
Construction staffing agencies can be a helpful resource for finding temporary talent to support on jobs, especially when your business is facing a staffing pinch. Compared to direct hire, a staffing agency has the disadvantage of a less robust vetting process, but it can be convenient and save considerable stress when you can gain support from a reputable agency.
How Construction Staffing Agencies Work
Staffing agencies work by absorbing most of the cost and procedures for maintaining staff and invoicing the company that uses the workers. The staffing agency serves as the Employee of Record for the workers, handling payroll, taxes, workers’ compensation, and liability insurance.
When you use a construction staffing agency, you will be charged for staff based on an agreed-upon bill rate, which usually consists of the worker’s hourly wage plus a markup. This can be worth it when you are short-staffed and in need of flexible support quickly. Many agencies may offer a temporary-to-permanent staffing option, which can help you retain a consistent workforce.
Before committing to working with a staffing agency, consider asking questions like:
- What trades do you specialize in?
- How do you vet workers?
- Do you offer any safety training?
- What percentage of a cut do you take?
- What are your conversion rates?
- Do you have replacement guarantees if the worker fails to show?
- What insurance coverage do you have?
Onboarding That Keeps New Hires Safe and Productive
Onboarding that adequately prepares new hires for their responsibilities and ensures they are well-prepared for the position and your expectations as a subcontractor. Having consistent onboarding processes for your employees as soon as they join the team provides them with confidence and security to set the foundation for long-term employment.
During the first week:
- Complete all necessary paperwork
- Ensure that they have the necessary personal protective equipment
- Perform a site safety orientation
- Pair the new hire with a mentor who can walk them through important processes
- Provide a clear first assignment
Following the initial hiring process, conduct a 30-, 60-, or 90-day check-in to review your team member’s progress, offer any feedback, and listen to any concerns they may have about their time on the job so far. Quick turnover after a lengthy hiring process is one of the most costly aspects of hiring new talent, so it’s important to create an infrastructure that prevents it.
How to Retain Construction Workers
Staff retention is crucial to navigating the construction labor shortage. Retain workers by ensuring they feel valued and have the resources they need to succeed in their position, with the following steps. Both hiring new workers and turning down jobs you can’t staff are expensive, so retention should be a priority for construction businesses.
Pay and Benefits That Compete
When a large number of construction businesses are competing for a small number of workers, the position has to be appealing for skilled professionals who have many options in a job search. The construction industry has seen average pay increases of 5% year over year, which is about 2% higher than the industry average.
Construction businesses must be willing to keep up with industry pay trends to remain competitive. Other additional valued benefits in addition to base pay can help attract reliable workers, such as:
- Per diem
- A clear overtime policy
- Health coverage
- Retirement benefits
- Paid time off
Training, Apprenticeships, and Career Paths
Employees often feel more fulfilled and are more likely to stay when they have access to opportunities for growth and advancement in their careers. Offering job training, apprenticeships, and career advancement within your organization can be great ways to keep your workers motivated and keep them as part of your team long-term.
Support your team in their growth from laborer to foreman by building an internal process that allows for the following:
- Teaching laborers the necessary trade skills to advance to a foreman role
- Supporting your team members with the time and financial support to obtain certifications like OSHA 30
- Offering resources to your team to obtain other trade-specific credentials, like the NCCER Foreman certification
- Utilizing resources like apprenticeship.gov to connect your employees with apprenticeship opportunities
- Providing opportunities for interested team members to learn new technology and processes above their current role, like blueprinting
Steady Work: How Your Backlog Drives Retention
Crews often leave when work is inconsistent, so having a strong pipeline of work benefits your business in employee retention just as much as it does with revenue. Maintaining a consistent workflow and a predictable pipeline of quality work helps alleviate uncertainty and supports employee fulfillment in their job. Having a resource, like PlanHub, to support your bidding process can help your business find consistent commercial bids and maintain a steady backlog of work.
Culture, Communication, and Recognition
Workplace culture is often an underappreciated factor in employee retention, but it is important to create an environment where workers feel valued and want to stay. You as a construction business can take several little practical steps to advance the culture of your workplace:
- Respect crew input on scheduling
- Show recognition for strong work on site
- Set fair expectations that your team will be able to uphold
- Maintain clear communication in the office as well as the field
Simplifying employee management can also improve the employee experience. Tools like Netchex help construction businesses streamline hiring, onboarding, payroll, and HR processes so they can spend more time supporting and retaining their crews.
Measure Turnover and Learn Why People Leave
When you do experience turnover, getting to the root cause helps you address the problem and prevent it in the future. Measure staff turnover by dividing the number of employees who left by the average number of employees, then multiplying by 100 to receive a percent. Have project foremen track this number using this formula:
Turnover rate = (Employees who left/Average number of employees) x 100
Consider conducting short exit conversations with staff leaving and consult management positions like the foreman and your crew for their perspective on what may have caused employees to leave and what improvements could be made. Your team is your greatest resource for understanding on-the-ground concerns and creating a work environment that retains its best workers.
Widen Your Talent Pool
Consider a diverse talent pool as you embrace the hiring process. Tapping into a variety of talent pools, like making an effort to recruit more women, considering second-chance hiring, and partnering with high schools and trade programs, can allow you to access deep talent pools with a lot of potential for a positive payoff.
Taking the time to expand your search into new avenues can help you find talented potential employees where other businesses are not looking. When many construction businesses do not make a concerted effort to reach out to diverse groups beyond basic job postings, you could find your next hidden-gem worker.
Tools That Make Hiring and Workforce Management Easier
Hiring and workforce management can be difficult to stay organized, as there are many moving parts involved, so taking advantage of the right tools can help you streamline the processes. Consider using some of the following tools to your advantage:
- Applicant tracking – Publish job roles, pre-screen candidates based on their resume, and organize which candidates you should reach out to.
- Crew scheduling – These tools can instantly update your crews with their schedules while helping you organize who should work and when to keep jobs properly staffed.
- Mobile communication tools – Mobile communication tools can integrate with applicant tracking systems to allow for direct communication with applicants through text message or a phone app to speed up the connection process.
Conclusion
With the labor challenges of the construction industry, successful construction subcontractors understand how to hire quality construction workers while also taking steps to retain their current workers. Businesses should have clear screening processes while knowing where to look for employees, and create a culture that team members want to be a part of.
As you look to grow your construction business, it’s important you take on the right work for your team. Our subcontractor bidding platform can help you keep your backlog full and find the best-fit projects for your construction business, depending on your crew size and project specialty. Search through actively bidding projects, match with those that are the best fit for your business, and move through the bidding process with collaboration tools that help you make the most of your team.
Try PlanHub for free to see how our platform helps you manage projects more easily.
Frequently Asked Questions
How do I find skilled construction workers fast?
To find skilled workers fast, consider consulting reputable staffing agencies, exploring platforms that connect you with construction labor, gathering employee referrals, and contacting union halls.
Should I use a construction staffing agency or hire directly?
Whether you should use a staffing agency or hire directly depends on your specific project needs. If you need a worker quickly and the job will not require extensive specialization, a staffing agency may be a helpful resource. However, if you need a long-term worker and you have time to dedicate to the hiring and onboarding processes, then hiring a new worker directly is likely worth it.
What are the different types of construction workers?
Subcontractors employ a variety of construction workers, including skilled tradespeople such as electricians, plumbers, carpenters, and journeymen, as well as laborers and apprentices. They may also employ foremen to supervise crews, estimators to prepare bids, and project managers to oversee their contracted work. These positions may be full-time, temporary, or seasonal.
How do I keep construction workers from quitting?
Construction subcontractors can retain workers by offering competitive pay, reliable benefits, and maintaining a consistent flow of fulfilling work. Keeping workers from quitting requires close attention to your business’s operations, people management, and the workplace culture you foster.
What questions should I ask when interviewing construction workers?
When interviewing construction workers, you should ask questions that will help you gather an understanding of their past work history, their credentials, and their reliability for the type of projects you typically staff. Consider asking these questions:
- What types of projects do you have experience in?
- What safety credentials do you have?
- What trade licenses or certifications do you have?
- Does your experience involve commercial projects, residential projects, or both?
- What is your typical availability?
- How do you handle workplace safety protocol?
Why is there a construction labor shortage?
The construction industry faces a labor shortage due to factors like an aging workforce, fewer new workers entering the industry, changing immigration policies, and a growing number of projects that require skilled expertise. Many construction businesses are competing for a small pool of skilled professionals to complete their team, especially when obtaining projects that require specialized labor and a considerable number of workers.
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