As inflationary pressures and a continuing labor shortage push construction wages to record levels, contractors are looking beyond monetary reimbursement to attract and keep talent.
Contractors are reviewing their budgets to find creative ways and additional financial incentives to retain workers in today’s inflationary environment, said Misha Nikulin, managing director at Deloitte’s engineering and construction practice.
Average hourly earnings for construction workers climbed 6.1% from December 2021 to December 2022, exceeding the 5% rise in average pay for all private sector production workers, according to Associated General Contractors of America’s 2023 Construction Hiring & Business Outlook.
Even though 72% of contractors increased base pay rates and about a third boosted bonuses and benefits in 2022, 80% reported having a hard time filling positions, the report found. The survey gathered data from more than 1,000 construction firms.
But workers care about more than just a good salary.