A report by SRS Recruitment Solutions highlights the emerging hiring and workplace trends that will affect UK’s construction products sector and provides insight into how businesses can proactively plan and manage their workforce in 2023 and beyond.
As we leave behind a year that could be described as a melting pot of economic uncertainty, Russia’s invasion of Ukraine, a tightening labour market and the ‘cost of living crisis’, it is undeniable that 2023 will not be void of challenges that will continue test the resilience of businesses.
For the UK construction industry, some sectors are set to see less of a decline but none will to be immune to the impact of rising inflation, according to a recent report by the Construction Products Association.
However, Glenigan reported that there are over 88,000 large-scale projects due to start in 2023 and an ‘upturn’ in activity for major projects in the commercial and industrial sectors is expected despite the turbulent economic conditions.
This indicates that opportunities exist for construction product suppliers and their ability to capitalise on these will rely heavily on the strength of their resources, shining a light on the need for a strong and skilled workforce.
Inevitably, market conditions will continue to impact hiring and staff retention across the construction industry and emerging workplace trends along with changes in workers’ attitudes and behaviours will require a more tactful approach to retaining, developing and attracting talent in 2023 and beyond.
Trend 1: Inflation and living cots will put earning more at the top of the agenda for UK workers
The effects of inflation and rising living costs are going to make compensation a top priority for workers this year as they face a continued struggle to cover the costs of utility bills, mortgage repayments and rising food bills.
Market research company ClickUp research reveals that 26% of the British workforce (over seven million workers) plan to change jobs in the new year with 42% citing current economic pressures as the main driver and, more specifically, the need to boost their income to offset increasing living costs.
A study by Unum UK found that 60% of employees cited managing financially in the cost-of-living crisis as one of their biggest concerns for this year with another 16% expecting to take on a second job in a bid to stay afloat. However, research by Totaljobs found that 52% of UK workers were confident that receiving a pay rise in line with inflation would encourage them to stay with their current employer.
A number of businesses are also stepping in to support their employees who are struggling with rising costs of living by offering one-off Cost of Living payments. Other firms have or are planning to offer other types of support in 2023 including discounts, assistance with utility bill payments, sell-back annual leave schemes, free or subsidised meals and salary sacrifice schemes.
Trend 2: Employees will continue to persist in their flight for flexible working
The pandemic-induced shift to flexible working was met with mixed emotions from the construction industry, one that intrinsically relies on in-person relationship building, networking and physical presence on site.
While pivoting to remote working was embraced by many businesses, others were keen to have their employees back in the office, on site and with their teams. Nevertheless, 2023 is predicted to see workers persist in their demand for a more flexible approach from their employers.
While the obvious predicament is that many construction businesses are simply unable to facilitate flexible working i.e. work-from-home practices, especially within production and site-based environments, flexibility around working hours and shift patterns will be a key consideration for those roles where remote work or WFH is not a viable option.
To support this, recent data from Glassdoor uncovered that remote or ‘hybrid’ work will be an enduring feature of the UK workplace in 2023 and its survey found that employees rated their workplace experience more favourably when hybrid working was mentioned in their reviews than those who did not mention it, creating a direct link to job satisfaction levels.
Trend 3: Skills shortage will continue to impact hiring
The skills shortage will continue to plague the construction industry in 2023 where demand for specific skills will still outweigh supply, driven by an ageing workforce with a lack of new entrants to the sector along with a lack of gender diversity.
A 2022 study by industry association VDMA found that 60% of businesses expected an increase in demand for skilled workers and engineers in the next 12 months, while another survey undertaken by Autodesk in December 2022 found that 36% of UK construction firms were struggling to hire talent and 58% citing the inability to find the skills they require.
Categorised as a ‘shrinking workforce in a growing market’, the challenge will remain for UK construction suppliers to identify and hire the skills, experience and qualifications they need to capitalise on opportunities for market growth.
The ManpowerGroup 2023 employment outlook survey found that retaining talent will be a key priority for many UK organisations in 2023 as employees’ choice over their workplace and working conditions remains high resulting in an increase in job hopping.
Trend 4: Mental health and wellbeing at work
Mental health and wellbeing continues to be a pressing topic in the workplace with a spotlight being shone on male-dominated industries such as construction in recent years where the male mental health stigma has been a key focal point.
While the World Health Organisation estimated that the COVID pandemic affected the mental wellbeing of people worldwide and created a 25% increase in general anxiety and depression, Gartner HR's research emphasised that, while COVID related mental health concerns have subsided for many, they have now been replaced by mental health issues related to inflation, cost of living crisis, layoffs and a forthcoming recession.
As we head into 2023, there is little doubt that workplace mental health and wellbeing will remain a priority and there are some key considerations to highlight. Research by Deloitte in 2022 showed that 52% of UK employees felt unsupported by their employer when it came to mental health at work.
Additional research leading mental health app Wysa found that one in three workers suffer from moderate to severe depression or anxiety with the highest rates among younger people (under the age of 24). It should therefore come as no surprise that younger workers/the new generation (Gen Z) of workers (widely known as the demographic most difficult to encourage to take up careers in the construction industry) are putting mental health and wellbeing at work as a major factor in job satisfaction and in choosing an employer.
Final thoughts
Employees and job seekers will expect more from employers in 2023 including improved benefits packages that go beyond the standard, more focus on mental health and wellbeing at work and more openness to flexible working practices.
It will be vital that businesses do not ignore these concerns and, instead, find ways to address them in order to avoid becoming victim to what a number of HR experts have dubbed the ‘great resignation’ of 2023.
Businesses in the construction industry should expect an uptick in financially motivated resignations as their competitors fight to offer more attractive salary packages. They should also expect renewed difficulties in recruiting as counter offers become more common and monetary ‘golden cages’ put around high performing employees create a barrier to attracting talent from the competition.
Many businesses will find themselves seeing counter offers as a necessary evil in order to retain their best employees. However, in the long-run, throwing money at a problem is not a viable solution as the probability of an employee resigning within 12 months from accepting a counter-offer is extremely high. This situation is only delaying the inevitable.
Finding ways to bridge the skills gap while managing employee expectations will need to be a top priority for construction product suppliers in the year ahead. The trends show that employees will continue to hold leverage over employers and job seekers control the hiring landscape but with the continued threat of recession and consequent rise in unemployment, this may tip the scales and increase employers’ leverage as long as the right strategies are implemented.
