Developing and engaging employees, as well as managing their performance and providing clear direction for their careers, are critical steps toward company success. However, achieving that goal in today’s tight labor market has become exceedingly difficult.

While the national unemployment rate hovers around 4% – the lowest since December 2000 – and continues to decline, the number of active engineering and construction (E&C) projects continues to increase exponentially. In turn, this has placed added pressure on companies to optimize current labor pools, develop strong leaders, and attract the Millennial generation to join their ranks.

Further highlighting the talent crisis as a global issue, Duke University interviewed 850 CFOs in a recent survey, nearly all of whom pinpointed “attracting and retaining qualified employees” as their top concern. In addition, 89% of CFOs also said “they don’t expect their companies to be able to pursue the full panoply of value-creating projects that they’d like” thanks to this dearth that has ultimately hindered industry performance and productivity.2 “In especially short supply are the managerial competencies needed to implement ambitious growth initiatives.”

FMI recently completed its 2017 Talent Development in the Construction Industry Survey, which reveals the key talent-related issues plaguing today’s companies, pinpoints what companies can do to overcome these issues, and demonstrates the value of prioritizing talent development as a strategic, organization-wide initiative. This article will explore survey findings and provide recommendations to help contractors address talent development challenges.

Implementing a Systematic & Strategic Approach

Findings from FMI’s 2017 Talent Development in the Construction Industry Survey paint a mixed picture of how companies currently address people development.

Leading organizations recognize the need for more systematic and strategic approaches and are investing in the people and resources required to establish long-term talent management programs.

However, most companies fail to address talent development as a strategic priority.