The skilled labor shortage predicted for so long – what many call “the war for talent” – is here. One of Sundt’s strategies for success is to invest heavily in craft training in order to attract and retain the best people in the industry, thereby turning the challenge into an opportunity for growth.
“The best skilled craftspeople have their pick of where to work,” says Ken McKenzie, Sundt’s director of craft talent development. “How do they choose from among three or more top contractors? Most of them will pass up location and even money to work for a company that has good leadership at the front line. That tells us a lot. People want to work for supervisors with strong leadership skills, and they want to be with a company that invests in their training and long-term career goals.”
Research also shows that training pays. A study conducted by the Construction Industry Institute (CII) found that an investment of one percent of labor cost, directed toward craft and frontline supervisor training, will produce a benefit of 2.3 times that amount. CII’s findings indicate an average productivity improvement of 11 percent, a turnover cost decrease of 14 percent, absenteeism decrease of 15 percent, injury decrease of 26 percent, and rework decrease of 23 percent.
Sundt currently has three active apprenticeship programs (form carpenter, equipment operator and equipment mechanic) and is planning to add new programs while increasing overall participation. The skills McKenzie plans to focus on are the ones he says have the most direct, positive impact on safety, quality, and productivity improvement. He is also planning to implement a program to help frontline supervisors plan their career paths and identify and achieve their goals.
“We’re not just focusing on technical skills, but also on what are often called “soft skills:” leadership at the crew level, effective communication, planning, etc.,” he said. “Those abilities, in combination with strong technical skills, are rare, but they can absolutely be taught.”
By seeing the war for talent coming ahead of time, and responding with a robust craft training plan, Sundt is in an excellent position to achieve its goals: to be the contractor of choice for its employees and clients.