Eighty-one percent of construction firms have trouble filling both salaried and hourly positions, according to the Associated General Contractors of America. Meanwhile, 72% expect labor shortages to be their greatest hurdle in the next year. One of the best ways for contractors to solve this labor shortage and scale their workforce is taking a temp-to-hire approach. See the three benefits of a temp-to-hire approach in your construction business—and learn how today’s construction staffing agencies create a workforce plan that fits your business needs.
Reduce the risk of bad hires
The hiring process for full-time roles requires thorough vetting, and even that may not be enough to determine someone’s skills. In some cases, the new employee might not produce the quality of work needed. Or they may have a poor attitude and low motivation. Making the wrong decision could prove costly. The average cost of a bad hire is up to 30% of the employee’s first-year earnings (U.S. Department of Labor).
Taking a temp-to-hire approach can greatly lower your risk of a hiring mistake. This lets you test someone’s skills and assess how they fit in with your team over a short-term period before you commit to hiring them on a full-time basis. Temp-to-hire roles basically serve as an extended job interview, giving you a clearer picture of the worker’s potential. As a result, you make smarter staffing choices without having to add new employees to the payroll only to replace them soon after.
Save time, money and morale for your business
When you’re short-staffed or you expect a heavier workload in the near future, trying to fill open positions is just another task on your list. A temp-to-hire approach can help your productivity and bottom line as well as employee morale:
- Time: When you need staff for future projects or to cover long-term absences, temp-to-hire workers can help prevent delays and keep your project moving forward.
- Money: Compared with full-time hiring, temp-to-hire can reduce the amount of training and overtime costs plus advertising and recruiting expenses.
- Morale: With the right staffing support on your job site, your full-time workforce will be able to focus more and be productive without feeling overworked or unable to perform to the best of their abilities.
Ensure flexibility as you plan for future growth
The 2021 Dodge Construction Outlook reports that total U.S. construction starts are expected to reach $771 billion by the end of 2021. That’s a 4% increase over prior year. This projected growth will require a larger workforce for many contractors across the country. In order to pursue future opportunities, they’ll need to be flexible in how they find and assess workers.
Temp-to-hire staff provide that level of flexibility for your business. They bring a specific skill set to your job site—whether that’s technical ability, training or education—which you might be missing right now. And, if their skills are solid, you can transition them to full time. Temp-to-hire gives you extra support on your current assignments and greater confidence as you bid on future projects.
Construction staffing agencies support your staffing efforts
Partnering with a construction staffing agency that can assist in your staffing process is a great asset. Construction staffing agencies manage the costly and time-consuming task of finding the right construction staff. That includes general laborers, general or skilled construction workers, or skilled tradespeople. They have industry experts and access to ideal-fit candidates for your job site right now.
Construction staffing agencies can:
- Screen, interview and test candidates.
- Verify experience and work histories along with checking references.
- Reduce paperwork and administrative duties.
With a team of expert recruiters and an extensive network of job candidates, PeopleReady is the construction staffing agency you need to deliver a construction workforce. If you’re looking for general construction workers, you can use our app, JobStack, to connect with our associates 24/7. And with our local presence in 600 communities, we also have staffing experts in your area. Need skilled laborers and tradespeople? Our specialized subdivision PeopleReady Skilled Trades can connect you with the workforce you need.
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