The U.S. construction industry is grappling with a historic labor shortage and is projected to need 439,000 additional workers in 2025, according to a model from the Associated Builders and Contractors.1 This gap, compounded by an aging workforce and a lack of skilled entrants, is pushing up wages. Construction craft professionals now earn approximately 20% more than the private sector average, based on data from the U.S. Bureau of Labor Statistics. To remain competitive, construction firms must strategically rethink how they attract, onboard, and retain talent.
This article explores proven strategies and technology tools that can help contractors build resilient, engaged teams.
The Labor Market Challenge
Labor shortages have become not just a hiring issue but a profitability issue. Ninety-two percent of construction firms struggle to find qualified candidates,2 and more than 50% of applicants lack required certifications or experience.3 This gap can cause longer hiring cycles and increased risk on job sites.
Vacant roles and underqualified hires may result in costly rework, compliance issues, and inefficiencies across projects. These challenges can adversely affect project timelines, turnover costs, and overall productivity.
When an employee leaves, the replacement expense can range from 50 to 200% of their annual salary, factoring in recruitment, background checks, and training.4 Investing in retention, therefore, is more than a people strategy; it may be a financial imperative to help stabilize operations and protect the bottom line.
Building a Culture of Retention
Retention is built on a foundation of communication, development, and recognition. Firms should adopt a structured approach to help foster loyalty and reduce churn, especially among younger workers seeking purpose and progression.
A proven five-stage retention framework (as outlined below) provides a practical model:
- Onboarding: Create a structured, welcoming experience that gets new hires ready for the job quickly and safely.
- Development: Offer continual training, certification opportunities, and clear career growth paths.
- Engagement: Foster open, transparent communication and feedback loops between the field and office.
- Recognition: Celebrate milestones, contributions, and safe work practices.
- Advancement: Provide clear, supported paths for promotion from within.
In addition, incorporating flexible schedules, wellness programs, and transparent communication is essential for building a culture of retention and innovation.
Promoting from within and recognizing achievements can help improve workforce stability and engagement.
Technology Tools: Integration Is Key
For construction, HR technology should not be a standalone solution. HR tech often is most effective when it is a component of your enterprise resource planning (ERP) software. Modern applications like Trimble Viewpoint HR Management, part of the Trimble Construction One platform, use the same HR data for job costing, payroll, compliance, and field operations, all in real time.
Here’s how direct integration can work:
- Spectrum HR Management can sync labor and equipment data by job and phase, allowing field teams to enter timesheets and expenses directly from mobile devices. These entries flow into payroll and job costing systems automatically.
- Vista HR Management can support real-time tracking from application to offer, with digital breadcrumbs to aid compliance. Field staff can submit time, expenses, and documents from various devices, helping reduce paperwork and improve accuracy.
A seamless and direct integration of HR tech with ERP tools can support the retention framework in multiple ways, including:
- Accelerated Onboarding (Stage 1: Onboarding): Digital templates and automated processes can reduce paperwork and automatically track certifications.
- Compliance (Stage 2: Development): Real-time I-9 and certification tracking helps provide digital breadcrumbs for audits and confirms workers are ready for job phases.
- Accurate Payroll (Stage 4: Recognition): Field teams enter timesheets and expenses directly via mobile devices, syncing in real time with payroll and job costing. This can help finance teams provide timely, accurate pay.
Automated onboarding can accelerate new hire documentation and training, helping to reduce time to productivity.
Workflow Map Example: Before vs. After Integration
| Before Integration | After Integration With Trimble Viewpoint |
|---|---|
| Manual onboarding packets | Digital onboarding templates auto-fill union, federal, and state forms |
| Paper timesheets | Mobile timesheet entry with job-phase coding |
| Delayed payroll approvals | Automated payroll sync and approvals |
| Disconnected compliance tracking | Real-time certification and I-9 tracking |
Measuring Efficiency Gains
The gains from HR tech in your ERP platform can be measurable and directly impact the bottom line. Companies using streamlined systems report significant reductions in work-to-billed-to-paid time, freeing up crucial cash flow and helping to reduce administrative overhead.
| Metric | Before HR Tech | After Trimble Viewpoint |
|---|---|---|
| Time to onboard | 5–7 days | <2 days |
| Payroll errors | Higher error rates (manual entry) | Lower error rates (automated sync) |
| Billing cycle examples | 10–14 days | 5–7 days |
These process improvements help HR and administration teams operate more efficiently. By reducing administrative tasks and speeding up critical cycles, fully integrated HR tech can deliver measurable returns that can translate into improved project performance, reduced risk, and enhanced profitability.
How Forvis Mazars Can Help
The construction industry’s labor challenges demand proactive solutions. Firms that embrace technology, prioritize candidate experience, and invest in workforce development will be well positioned to thrive amid ongoing market pressures.
Ready to transform your HR operations? Connect with professionals at Forvis Mazars for a personalized HR tech assessment and discover how our experience in implementing integrated platforms like Trimble Construction One can help your organization recruit effectively and build a culture of retention and innovation.
- 1“Construction Spending and Employment Forecast,” abc.org, 2025.
- 2“AGC Survey Finds Construction Workforce Shortages as Leading Cause of Project Delays,” constructconnect.com, September 2, 2025.
- 3“New Survey Shows How Nation’s Failure To Invest In Construction Education & Training Programs Makes It Hard For Firms To Build,” agc.org, August 28, 2024.
- 4“The ‘Great Resignation’ Is Really the ‘Great Discontent’,” gallup.com, July 22, 2021.