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Matt Verderamo is a consultant with Well Built Construction Consulting, a Baltimore-based firm that provides strategic consulting, facilitation services and peer-to-peer panel discussions for construction executives. The opinions are the author’s own.
One of the biggest challenges construction business owners must face in the coming years is adapting their culture to accommodate the next generation of workers.
About 41% of the current one The construction workforce is expected to retire by 2031, according to a National Center for Construction Education and Research, which will intensify the urgency to hire a new generation of qualified professionals.
This is more than a personnel problem, it’s a cultural problem.
As almost half of the workforce leaves, they will be replaced by a generation with different expectations about leadership, development and work culture. If companies don’t adapt, they will struggle not only to recruit talent, but to keep it.
Traditionally, construction culture has valued hard work, following direction and leaving emotions at the door. The business is expected to be profitable and decisions are made accordingly.
Matt Verderamo
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Meanwhile, the next generation of construction professionals often value soft skills, meaningful development and a clear vision for the future. They want defined career paths, opportunities for growth and reconciliation of work and family life. They place significant emphasis on the integrity of leadership and the overall experience of people within the business.
No mindset is right or wrong. But if construction companies want to remain competitive, they must learn to integrate both.
The right balance
Becoming a “construction company of the future” requires finding the right balance between profit and people. This is not a choice between being tough or being supportive. It is about building a culture where excellence and development coexist.
You should prioritize benefits by:
- Making excellence non-negotiable.
- Build systems and SOPs that support scalable growth.
- Make people accountable for their roles and responsibilities.
You must prioritize people to:
- Create an environment where high performers want to build a long-term career.
- Demanding integrity and transparency in leadership.
- Establish a clear vision and strategic plan that all team members understand and support.
Here’s the key: profitability and people development are not opposites. Profitability is what funds long-term growth, opportunity and stability. A company that cannot generate profits cannot sustainably invest in its people.
Be careful not to overcorrect
In an effort to adapt to the next generation, many construction companies are increasing their focus on employee culture and experience. This is necessary. But there is a danger in overcorrection.
A few years ago, we started working with a mid-market general contractor whose owners really wanted to create the ideal culture for the next generation. They believed this meant prioritizing flexibility, avoiding conflict and minimizing pressure.
But they went too far.
Eroded responsibility. Roles and responsibilities became suggestions. Low performance was not addressed. Employees routinely came in late and left early. Tough conversations were avoided.
The company was losing money, but bonuses were still handed out every year because the owners wanted to “do the right thing.” Was it well-intentioned? Absolutely. Was it sustainable? Not even close.
The result was a culture of complacency. The business lost money year after year and the owners were on the verge of closing their doors.
Profitability is not the enemy of culture
To restore the organization, we had to face a harsh truth: companies are not required to give bonuses. They are not required to give annual increases. They are not obligated to make employees feel good every day. They are bound to survive.
Without benefits, there is no stability. Without stability, there is no long-term opportunity. Without opportunities, there is no meaningful career path for the next generation.
When employees saw five years of financial results and realized that the owners had consistently lost money, the mindset began to change. They understood that a culture of no accountability hurts everyone.
Today, this company is still in the process of cultural transformation. Profitability is improving. Leadership has strengthened accountability. Expectations are clearer. And employees now understand the role they play in building a business that can truly care for its people.
The future belongs to balanced companies
Adapting to the next generation doesn’t mean abandoning the principles that built the industry. It means to elevate them.
The construction companies that will prosper are those that combine the traditional commitment to excellence and profitability with a modern commitment to culture and leadership.
Profit makes opportunity possible. Responsibility protects culture. And strong leadership brings the two together.
If you want to secure your place as the construction company of the future, create a culture where people thrive and performance matters.
This is the balance that the next generation really needs.
