Seventy-three percent of construction firms plan to

expand their staff in 2017 according to the Associated

General Contractors of America (AGC) and Sage

Construction & Real Estate’s 2017 Construction Survey

and Business Outlook. Contractors are not alone as

architecture and engineering firms are also enhancing

their internal talent in response to current activity and

anticipated growth in both the

public and private markets.

Considering the industry’s limited

pool of talent, mass retirements of

baby boomers, pressure from

owners, and difficulties in attracting

millennials, it’s not surprising that

Architecture/Engineering/

Construction (A/E/C) companies are stepping up their

recruitment and talent management practices.

Tom Helbling, President of Helbling & Associates, has

been a search consultant in the A/E/C and real estate

development sectors for nearly 40 years. Recently, he and

some of his senior consultants sat down to discuss the

changes occurring in the industry, and how companies of

all sizes are adapting their recruitment and talent

management.

Diverse factors are prompting A/E/C firms to improve their recruitment methods

Tom Helbling has seen the A/E/C industry transform itself

many times over due to recessions and other economic

impacts. He says, “As organizations of all sizes dealt with

the ebb and flow of activity, recruitment was most always

reactive. Companies would hire professionals simply due

to attrition, when they were awarded projects, or when

there was a retirement. Recruitment was a response

rather than a plan. That has all changed since the last

recession. It’s a different scenario now because firms are

facing so many diverse issues.”

“We all know the amount of

experienced professionals retiring

from the industry. We understand

the skills gap and how it occurred,

and the difficulties the sector faces

in attracting and retaining

millennials. All of these factors, along with advanced

technologies, new delivery methods, and complex

projects are prompting organizations to diversify and

refine their recruitment processes and talent

management. Companies realize that they must have the

right talent to grow and expand their capabilities, and

achieve their objectives. By ‘right’ talent, I am referring to

talented individuals with strong technical and

management skills and who fit in with a company’s

culture.”

“Another major factor impacting recruitment is coming

from owners – the industry’s customers and end-users,”

says Helbling. “Owners are much more sophisticated in

how they plan their capital programs and projects. And,

some of these projects and developments are larger

IndustryPressuresPromptingChangesinA/E/CRecruitment&TalentManagement

Sami L. Barry

73%ofconstruction.irmsplanto

increasetheirheadcountin2017*

*AGCandSageConstruction&RealEstate2017

ConstructionSurveyandBusinessOutlook

and more complex than we have ever seen before.

Owners are well educated in terms of design concepts,

construction processes, and delivery methods. They want

to be highly engaged in the construction process, and

many have their own internal design and construction

teams who understand costs, schedules, and

constructability issues. They understand the skills and

expertise that are required for their projects, and they

carefully consider an A/E/C firm’s talent and capabilities.

They have high expectations, and the quality of a team is

often the differentiating factor in award selection.”

“These issues, all of which are significant, put pressure on

A/E/C firms in terms of performance and profitability and

both of these rely directly on internal talent.”

How A/E/C firms are improving recruitment

Talent acquisition and management are considered top

priorities among A/E/C organizations. As a result, they

are performing recruitment in a more proactive manner,

enhancing their non-core talent, conducting succession

planning, offering extended benefits and professional

development, and implementing strategies to attract

millennials.

Proactively seeking and attracting talent

“As executive search consultants, we hear about the

limited talent pool every day, and we live it,” says Jim

Lord, Managing Director. “As Tom (Helbling) said, firms

have learned that, if they want to be strategic with which

projects they pursue, they have to be proactive and

strategic with their recruitment as well. If companies

don’t have the right talent to build projects, they’re not

going to get the contracts. So the more progressive

organizations want exceptional professionals on staff

sooner rather than later. They realize the need to keep

their talent pipelines filled.”

“Organizations are also becoming adept at identifying

employees who are under performing and those who are

unengaged. These employees will most likely leave

within a short time-frame. It’s important to stay a step

ahead and acquire talent for when they do leave. When a

company has more time to recruit an ideal professional,

there is less pressure. The reality is that it’s no longer

feasible to wait until you have an actual talent need, then

post an employment ad, and expect a qualified

candidate to apply.”

Strengthening non-core talent

“Having the right leaders in non-core functions, such as

business development, human resources, estimating,

safety, and security, is critical to help support the

operations and execution of projects,” says Helbling.

“The stronger the non-core talent is and the more

innovation and value these professionals can provide, the

stronger the operations side can be.”

Tom Dunn, Senior Managing Consultant, notes, “Non-

core talent can come from outside the industry so

consideration is being given to non-traditional

candidates provided they have applicable experiences

and backgrounds. A/E/C hiring managers are more

open-minded to these professionals due to the strong

competition for talent. Furthermore, they want to see a

cross section of talent who can bring different

perspectives and ways of doing business. Quite simply,

companies desire to do things differently than they have

in the past. If they want that, they have to look beyond

the direct competition and obvious venues.”

Performing succession planning

“Progressive firms are also conducting formal succession

planning,” says Dunn. “It’s understandable that some

companies do not prioritize succession planning because

it takes a lot of consideration, time, and effort away from

competing priorities,” says Dunn. “There’s never a good

time to focus on it. But, businesses, especially those that

are family-owned, are realizing they have to do it

proactively if they want their organizations to exist for

another generation.”

IndustryPressuresPromptingChangesinA/E/CRecruitment&TalentManagement

IndustryPressuresPromptingChangesinA/E/CRecruitment&TalentManagement

He says, “FMI Chairman

Hank Harris recently said

in a Construction Business

Owner article that it takes

10 years to properly stage

and develop a succession

plan. As search

consultants, we are asked

to solve this type of issue

in three to six months with

a search. That can be

difficult, and at its core, it

is somewhat unrealistic.

But, if a firm begins

talking to us early on in

the succession planning

process and we

understand the type of

talent and skills they are

going to need both today

and several years from

now, the search can still

be challenging, but we have a clearer path regarding

how we can add value. If an organization thinks they will

have to replace a key executive in the next two to five

years, they need to start thinking about it now. It takes

time to prepare a team and organization for a shift in

leadership.”

Enhancing compensation structures, employee benefits, and professional development programs

In a recent study, the AGC found that 52% of survey

participants were planning to increase base pay rates,

and make investments in training and development. A

good percentage were also increasing their investments

in technology, and providing incentive and bonus

compensation. All of these are being done to recruit and

retained qualified staff. Dunn says, “The limited talent at

all levels in the industry and the competition for quality

professionals is prompting organizations to analyze

compensation structures, benefits, and professional

development programs.

They want to retain their

people, and they also

want to attract new talent.

They’re investing in their

employees and they’re

communicating regularly

with them. That’s one of

the reasons why strong

leadership on the human

resources side is

extremely critical. Human

resources professionals

are often the ones who

are running point for these

types of initiatives.”

“Offering professional

development

opportunities is critical for

strengthening and

growing a business,” says

Dunn. “Every candidate I work with wants to see and

hear about potential career progression when taking a

new position, and they want to join a company that

provides development opportunities for all levels of

employees.”

Implementing specific programs to attract millennials

Educating young individuals on the progressive aspects

of the A/E/C industry and what it can offer in terms of an

exciting career is important for the sector to continue

moving forward. “In terms of drawing people to the

industry, it’s awareness,” Dunn says. “I don’t think most

people outside of the industry understand what goes

into construction or real estate development and what is

entailed in these huge programs and projects that are

being built. The ‘good ole days’ of construction have

given way to organizations utilizing 3D printing, building

information modeling, iPads/tablets in the field,

AccordingtoAGC’sandSageConstruction&

RealEstate’s2017ConstructionSurveyand

BusinessOutlook,most.irmsreportedthey

wereplanningtodothefollowingin2017to

recruitand/orretainquali.iedstaff:

• 52%-increasebasepayrates

• 52%-increaseinvestmentsintraininganddevelopment

• 40%-increaseinvestmentsininformationtechnology

• 35%-provideincentives/bonuses

• 28%-increasecontributionstoemployeebene.its

Helbling & Associates is a retained executive search firm specializing exclusively in construction, engineering, facilities management, and real estate development.

w w w . h e l b l i n g s e a r c h . c o m

innovative alternative delivery methods, and multiple

other new technologies. Progressive firms of all sizes are

leveraging these technologies in attracting younger

professionals to the industry. It will take time, but

promoting these advancements and articulating the why

to the prospective talent pool will continue to attract the

next generation of talent into an evolving industry.”

As the industry continues to adapt to owner demands,

advanced technologies, and the shift in workforce

generations, we will see A/E/C firms adjust their

recruitment and talent management practices to sustain

success. We have already seen a positive transformation,

and it will be exciting to see how the industry as a whole

progresses into the future.

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IndustryPressuresPromptingChangesinA/E/CRecruitment&TalentManagement