6 Ways the Construction Industry Can Attract & Retain Gen Z Workers

Shift From College Degrees to the Trades

Since 2019, career expectations have changed. More young workers are considering alternatives to traditional four-year degrees.

Recent data points to Gen Z moving into the trades faster than previous generations; industrial businesses have a unique opportunity to build a skilled, tech-savvy, entrepreneurial workforce. This represents a unique opportunity for industrial businesses to attract and retain a generation that can help sustain their talent pipelines for the foreseeable future. 

According to research from the National Student Clearinghouse Research Center, between 2019 and spring 2024, enrollment of bachelor’s degree students fell by 3.6 percent, and enrollment of associate’s degree students fell by 15.9 percent. However, vocational enrollment rose by 4.6 percent during the same period.

Moreover, new labor market data published by ADP Research in Issue 7 of the quarterly Today at Work found the blue-collar share of employment for workers 20 to 24 was 18.6 percent in January 2024, 2.3 percentage points larger than that of the same age group in January 2019 and 2.5 percentage points larger than that of workers 25 to 39.

Why Gen Z Might be Opting for Trades 

Several possible factors contribute to Gen Z's growing interest in industrial business careers.

1. Stability and good earning potential: Industrial-based businesses often offer stable employment and competitive wages. For many Gen Z workers, avoiding the financial burden of student loans can also be a significant motivator. Trades like carpentry, plumbing, welding, machining, and electrical work can offer pathways to well-paying jobs without needing a four-year degree.

2. Hands-on learning and career development: Trades often provide a direct route to career growth through on-the-job training and certifications, which could allow young workers to climb the ranks faster than they might in other sectors. 

3. Technological integration: Modernizing the construction and trade sectors through innovations like drones, artificial intelligence (AI), 3D printing, and back office software could also be a selling point for Gen Z workers who are eager to blend physical work with technology. This tech-forward environment can provide a new appeal to what has traditionally been seen as a hammer-and-nail industry.

How to Attract & Retain Gen Z Workers

With the influx of Gen Z workers moving toward industrial careers, it is essential to focus on retention strategies. Below are six strategies to consider when trying to keep these young workers in the industry:

1. Provide career development opportunities

Employers can offer clear career development roadmaps that help young workers envision their future in the company. Whether they’re moving from an entry-level position to project management, gaining specialized skills in electrical or plumbing work, or transitioning to environmental and infrastructure projects, the opportunities for growth in construction are diverse.

Employers can also offer talent management tools to help managers track progress and ensure workers receive the training and guidance they need to advance in their careers. Companies can demonstrate their commitment to employees’ long-term success by providing a structured growth plan.

2. Offer a path to entrepreneurship

Many Gen Z workers are naturally entrepreneurial, desiring autonomy and the freedom to lead. Embrace this entrepreneurial spirit by providing resources that teach the ins and outs of running a business.

Instead of fearing that workers will leave to start their own ventures, companies can use this aspiration as a retention tool. When workers know that staying with their employer might eventually give them the skills and experience needed to become senior leaders, they’re more likely to stay.

3. Develop tech-forward jobs and training opportunities

Technology integration in the trades can be a major selling point for Gen Z workers. As technology revolutionizes the industry, younger workers need opportunities to learn new skills related to cutting-edge technologies like AI and drones. Employers who invest in training programs and technologies that teach these skills might have more success retaining workers by helping them remain relevant in an evolving job market.  They’ll also help you increase your business’ performance!

A tech-forward job environment also demonstrates that industrial businesses are not static. Instead, they adapt and change, making them exciting and dynamic workplaces.

4. Stay competitive on pay

Competitive pay will always remain a tentpole retention tactic. Companies should keep pace with salary expectations and regularly benchmark their compensation packages against industry, age, and geographical standards. Compensation benchmarking tools can help employers stay on top of market rates, helping ensure they offer attractive wages that keep young workers engaged.

But don’t be a slave to compensation comparables - One A-level player is worth 3 B-players.

5. Provide a tech-savvy workplace

Gen Z has grown up in a digital-first world. As a result, they likely prefer their work experience, from the hiring process to day-to-day operations, to be tech-enabled and mobile-friendly. Employers can leverage technology platforms that help simplify processes such as work boot reimbursements, scheduling, and payroll.

A streamlined, digital approach can make life easier for employees and improve engagement and retention by helping create an intuitive and responsive work environment.

6. Offer competitive benefits tailored to younger workers

Gen Z has a unique perspective on benefits. While traditional benefits like medical, dental, and retirement plans are still significant, younger workers prioritize non-traditional perks such as mental health counseling, days of service, pet insurance, and flexible work schedules. According to an ADP Employee Pulse Survey of 3,000 full-time employees, paid family and medical leave, employee training, and tuition reimbursement are among the most sought-after benefits for this generation.

Construction companies could better attract and retain Gen Z workers by offering a comprehensive benefits package that addresses both traditional needs and new ones aligned with Gen Z values.

As Gen Z moves toward industry faster than previous generations, construction and other blue-collar organizations have a unique opportunity to build a skilled, tech-savvy, entrepreneurial workforce. Companies can offer career development opportunities, competitive pay, tech-forward training, and benefits that align with Gen Z’s values to attract and retain these workers.