Contractors experience the impacts of industry-wide challenges like construction labor shortages daily. Developing craft training is one way of alleviating this pressure, and while this may seem like an indirect solution, there is growing evidence that these programs deliver benefits in competitiveness and profitability.
The following are just some of the reasons why 41% of companies they are increasing their spending on training and professional development programs.
Recruitment and retention
Despite being particularly adept at overcoming everyday challenges, contractors often find attracting skilled tradespeople a daunting task. Navigating material delays, budget constraints and fast project timelines is familiar territory, but recruitment and retention aren’t always a priority.
An often overlooked method of encouraging employee engagement is skill development and recognition. Craft training and credentials are a source of pride for their recipients. A report that explored the return on investment of manufacturing credentials state the following reasons why employees value them:
- They receive knowledge and training used in their current job.
- It involves being hired, receiving promotions and facilitating professional growth.
- It affects your ability to do your job.
Competitiveness often depends on having a skilled team ready, so employee satisfaction and retention are critical during a labor shortage. Craft training and credentials make businesses more attractive to new entrants and existing craft professionals.
Productivity and profitability
All companies, regardless of sector, can benefit from greater efficiency and quality of work. These factors directly impact revenue by lowering project costs and improving customer satisfaction. The immediate results of craft training have been thoroughly documented in reports such as these Craft training in the construction industry in the United States and Canada and include: reduced turnover, reduced absenteeism and improved safety. The long-term effects are increased productivity and decreased work. The well-known CII report RT 231-11 estimates these benefits as follows:
Estimated effects of investing 1% of the total project budget for wages/labor in craft training:
| Productivity improvement | 10.6% |
| Decrease in turnover | 13.9% |
| Decrease in absenteeism | 14.5% |
| Reduction of injuries | 25.5% |
| Rework Decrease | 23.2% |
These results correlate with a better trained and more efficient workforce. Projects that stay on time, on budget, and run well lead to satisfied customers and repeat business.
Competitive advantage
Many owners have requirements in their RFPs that ensure companies have workforce development. Craft training, along with credentials and certifications, provides an additional level of confidence and is used as proof of skilled labor. To bid on some projects, contractors must have a plan that demonstrates how they will meet these requirements.
A perfect example of project requirements comes from the recently enacted Inflation Reduction Act. It ties several learning requirements to a major tax incentive for many energy-related projects. As a result, many homeowners now require contractors to meet these requirements in order to be considered for these contracts.
With benefits for the contractor, the employee, and ultimately the client, the value of training the construction workforce is abundantly clear. Craft training and improvement should be part of every contractor’s workforce development toolkit. In addition, a standardized credentialing program supported by industry reduces the resources required to implement craft training programs. Contractors using the same standard contribute to the overall growth of the talent pool and improve the skills of the overall workforce.
To learn more about the ROI of craft training and credentials, check out our recent white paper: Future-proofing the construction workforce: The value of training and credentials.
About NCCER
With NCCER’s extensive catalog of trades curriculum and industry-recognized credentials, solutions to fit every contractor’s needs are within reach. To learn more about the benefits of craft training and options for building your company’s workforce development program, contact NCCER’s Workforce Development Solutions team a www.nccer.org/wfd.
