General contractors (GCs) are struggling to hire senior construction leaders due to a perfect storm of challenges: a rapidly aging workforce, federal infrastructure projects increasing demand, and a widening skills gap. As of February 2024, there were 456,000 unfilled construction positions - the highest in two decades. Nearly 41% of the workforce is expected to retire by 2031, and modern projects demand advanced technical skills like BIM, data analytics, and cloud computing, which many seasoned leaders lack.
To address these issues, GCs are:
The stakes are high: federal initiatives like the Infrastructure Investment and Jobs Act (IIJA) and CHIPS Act are driving a surge in complex projects, making leadership recruitment and retention more critical than ever.
Construction Leadership Talent Shortage Statistics 2024
The construction industry is grappling with a massive workforce gap, with approximately 500,000 positions unfilled. This shortage is especially pronounced in leadership roles like project managers, superintendents, estimators, and foremen - key players in mission-critical infrastructure projects. In fact, 92% of construction companies report challenges in filling open positions, underscoring the scale of the problem.
Adding to the complexity, modern projects increasingly demand advanced digital and technical skills. Since 2019, there’s been a 15% rise in demand for cloud computing expertise, a 13% increase in software development skills, and a staggering 40% jump in the need for metal fabrication knowledge. However, many seasoned leaders lack the digital proficiency required for today’s high-tech projects. This skills gap is further compounded by the industry’s aging workforce, which threatens to drain decades of critical expertise.
The construction sector is feeling the effects of an aging workforce more than ever. The percentage of workers aged 55 and older has nearly doubled over the past 20 years, climbing from 11.5% in 2003 to 22% in 2023. Compounding the issue, 2020 saw a significant wave of retirements, with 3.2 million baby boomers exiting the workforce - over a million more than in any previous year since 2016.
This retirement surge is creating a knowledge vacuum. Without structured programs to transfer institutional expertise, years of valuable experience are lost as senior leaders leave. Meanwhile, younger professionals are less likely to follow traditional career paths, with 26% expecting to switch companies at least five times for career growth. This shift in career expectations makes it even harder to maintain stability in leadership pipelines.
Unlike past regional construction booms, today’s labor shortage spans the entire country, leaving no region with surplus workers to recruit from. Between late 2019 and 2021, construction wages rose by 7.9%, but transportation and warehousing wages grew even faster at 12.6%, intensifying the competition for skilled talent.
Interestingly, suburban areas are now seeing wage growth outpacing traditional construction hubs, making recruitment even more challenging. Labor shortages have also led to widespread project delays - 25% of material deliveries are late or incomplete - and driven labor costs to double compared to prepandemic levels. Historical trends show that severe labor shortages can slash productivity by 40% and extend project timelines by 20% to 25%. These challenges are especially pronounced in specialized sectors like renewable energy and high-tech infrastructure, where leadership expertise is both rare and highly sought after.
General contractors (GCs) are rethinking their recruitment strategies to tackle the ongoing talent shortage and skills gap.
With 92% of firms struggling to fill key positions, many GCs are turning to recruiters who focus exclusively on construction leadership roles. These specialized recruiters provide pre-screened candidates equipped with the technical and digital expertise needed for modern projects.
To reduce the risks associated with hiring, success-based pricing models are becoming more common. These agreements tie fees to successful placements - often calculated as 25% of the candidate's first-year salary or spread over monthly payments across a year. Additionally, a 90-day replacement guarantee offers protection against the high failure rate of new hires, which hovers around 50%. These tailored hiring models allow GCs to be proactive in building their talent pipelines.
GCs are forging connections with trade schools, universities, and industry organizations well before leadership roles become vacant. In 2023 alone, contractors invested over $800 million in trade and specialty programs to nurture future leaders. This strategy focuses on creating a steady talent ecosystem by collaborating with educational institutions, nonprofits, workforce development agencies, and community groups, rather than relying on reactive hiring.
This approach is supported by data: 90% of professionals are open to exploring new job opportunities even if they aren’t actively searching. Initiatives like hosting open houses, offering internships, and providing scholarships keep GCs visible and appealing to emerging talent.
"The future of the construction industry is dependent upon the next generation of workforce" - Associated General Contractors of America
GCs are also expanding their reach by partnering with organizations that represent veterans, women, and other underrepresented groups. This helps to diversify the talent pool for senior leadership roles.
GCs are increasingly adopting data-driven tools to improve their hiring processes. Applicant Tracking Systems (ATS) allow firms to handle larger pools of candidates while ensuring that qualified individuals aren’t overlooked. Social media recruitment has also proven effective for reaching passive candidates, particularly younger professionals who aspire to project management roles within five years. This approach is especially useful for engaging candidates who may not frequent traditional job boards.
But the shift isn’t just about technology.
"With more complex projects, increased schedule demands, and fewer experienced people, among other things, superintendents have to be better today than they were 10 or 20 years ago. Why not accelerate their learning through focused development and education?" - Boyd Worsham, President and CEO, National Center for Construction Education and Research
GCs are addressing the talent shortage internally by offering upskilling programs that fast-track employees into leadership roles. This not only fills critical positions but also strengthens employee loyalty by providing clear paths for career growth.
Offering competitive pay isn’t enough to attract top-tier senior construction leaders. General Contractors (GCs) need to pair attractive compensation packages with a strong employer brand that highlights opportunities for growth, meaningful impact, and a sense of purpose. This combination works hand-in-hand with efforts to proactively recruit and develop talent.
Executive salaries in the GC sector reached a 5.8% increase - marking the highest growth since 2000. Heavy civil executives saw similar growth at 5.7%, largely driven by federal infrastructure spending. The most significant pay bumps went to Executive Vice Presidents (EVPs) and Senior Vice Presidents (SVPs), as companies sought to secure succession-ready leaders ahead of expected retirements.
Jeff Robinson, President of PAS, notes that the urgency for extravagant pay increases is tapering off. Moving forward, firms are projecting more modest salary hikes between 4.7% and 5%, with regional differences. For example, the Southeast and Central U.S. are averaging 5.8%, while New York and New Jersey are closer to 4.4%.
Beyond base salaries, GCs are enhancing total rewards packages with perks like sign-on bonuses, vehicle allowances, relocation assistance, and expanded PTO. There’s also growing emphasis on skills-based premiums tied to expertise in areas like AI, cloud computing, and managing complex projects. With health insurance costs expected to rise by 6.5% in 2026, comprehensive benefits are becoming an essential tool for attracting top talent. These shifts in compensation trends underscore the importance of a strong employer brand that promises growth and meaningful contributions.
Once competitive salaries are in place, employer branding becomes a critical factor in drawing in leadership talent. Work-life balance is now a key consideration for future leaders. Jeff Wittenberg, Managing Director at Kaye/Bassman, explains:
"For today's mid-level managers, work-life balance is very real for them. That's a future generation of [C-suite] leaders, and work-life balance will factor into their decisions".
To meet these changing expectations, GCs are focusing on upskilling programs that prepare employees for emerging technologies. With 44% of current job skills projected to evolve by 2028, offering training in areas like AI and automation signals a forward-thinking approach. Structured mentorship programs are another strategy, allowing senior leaders to pass on their expertise while nurturing the next generation of talent.
Jeani Ringkob, Chief Brand and Growth Strategist at StoryBuilt, emphasizes the shift in employee expectations:
"It is a buyers' market for the employees and what worked before is not working anymore".
To stand out, GCs are showcasing clear career advancement opportunities and leveraging multimedia - such as employee testimonials, workplace photos, and videos - to build trust and social proof on platforms like LinkedIn and career websites.
Beyond competitive pay and growth opportunities, senior leaders are drawn to roles where they can make a meaningful impact. GCs can set themselves apart by highlighting involvement in high-profile projects funded by initiatives like the Infrastructure Investment and Jobs Act (IIJA), the Inflation Reduction Act (IRA), and the CHIPS and Science Act. Manufacturing construction, particularly for semiconductor and high-tech facilities, saw a 20% spending surge as of May 2024.
The demand for leadership skills has skyrocketed, with people management skills increasing 77% since 2019, and business management skills up 41%. This trend reflects the growing complexity of mission-critical projects, which require leaders who can navigate sophisticated stakeholder dynamics. Employees who feel their work contributes to societal impact are far more likely to remain with their employer for five years or longer.
Gary Kastenbaum, Managing Partner at Boyden, notes a shift in priorities among seasoned candidates:
"We see a number of tenured candidates who have decided they really want to leave their mark and have opted to move to smaller firms where bureaucracy is less prevalent, and the strategy is crystal clear".
Attracting top talent is only part of the story - keeping and growing senior leaders is just as critical for maintaining success in high-stakes projects. With 41% of the U.S. construction workforce set to retire by 2031, companies are doubling down on initiatives to retain expertise and prepare future leaders. These efforts not only sharpen skills but also help ensure long-term loyalty.
Formal training is a cornerstone of retaining senior leaders, especially in an industry that’s constantly evolving. The best programs weave learning into the daily workflow instead of treating it as a one-off event. For instance, one company blended classroom instruction with hands-on field training, embedding new skills across 45 project managers.
While technical know-how like value engineering and scheduling remains vital, soft skills - such as negotiation, conflict resolution, and coaching - are becoming just as important. With demand for people management skills rising 77% since 2019, leadership development is now a top priority for general contractors. For more insights into workforce strategies, check out our jobs and workforce guide.
High-potential (HiPo) programs are another powerful tool for retention. These initiatives focus on nurturing standout employees through tailored learning experiences. One contractor with operations across the U.S. launched a program to build strategic thinking and relationship management skills in emerging leaders. Over three years, 20 out of 21 participants stayed with the company. Cristina Alonso, Associate Partner at McKinsey, underscores the importance of such efforts:
"Systemic capability-building is no longer an option; it is a necessity".
With 22% of construction workers now aged 55 or older, nearly double the percentage in 2003, mentorship has become essential for passing down expertise. Senior leaders contribute more than technical skills - they bring insights into project dynamics, problem-solving, and stakeholder management.
Mark Dukes, Vice President of Asset Management at Physicians Realty Trust, highlights the importance of creating a supportive mentorship environment:
"Mentorship is a two-way street and that means that an environment must be created so that a mentee feels comfortable asking questions".
For mentorship to work, both mentors and mentees need to be fully engaged. Mentors should provide accessible and supportive guidance, while mentees need to actively seek out learning opportunities. Tyrone Chilcote, Regional Vice President at Able Services, adds:
"You have to find the right people in your organization that want to support and bring in that younger generation".
Tying mentorship to succession planning has proven highly effective. 69% of companies with high-potential programs link them to structured succession strategies. This ensures a smooth transition when senior leaders retire, as prepared successors are ready to step in. Transparent succession plans also boost morale, encouraging employees to invest in their own growth while fostering loyalty.
Even with strong development programs, turnover can still pose a challenge. To address this, some companies are partnering with recruiters who offer replacement guarantees. For example, iRecruit.co provides a 90-day search credit if a new hire doesn’t work out, giving employers peace of mind.
Adopting a skills-focused approach has proven to be a game-changer, with companies 98% more likely to retain top performers when they focus on competencies rather than rigid job titles. Job rotations and internal postings allow senior leaders to tackle new challenges and broaden their expertise, reducing the risk of turnover.
High-potential employees, when given the right opportunities, can be 400% more productive than average performers. By investing in their growth and showing a commitment to their future, companies create an environment where talent thrives. As one FMI Corp report puts it:
"High-potential employees who see the company investing in their long-term potential tend to feel more committed to their organizations".
The demand for senior construction leadership is only intensifying. With 41% of the U.S. construction workforce set to retire by 2031 and 456,000 unfilled positions reported as of February 2024, general contractors face mounting pressure to rethink their hiring strategies. The firms that succeed are those embracing modern recruitment practices - leveraging technology, partnering with specialized recruiters, and proactively building talent pipelines through industry collaborations. In this competitive environment, securing top talent requires more than speed; it demands strategic investments in both compensation and professional development.
But finding the right leaders is just the beginning. Today’s senior leaders have evolving expectations, including comprehensive benefits and opportunities to work on meaningful, high-impact projects. They also want clear signs that companies are willing to invest in their growth. As Michelle Meisels, Principal at Deloitte Consulting LLP, explains:
"Talent management is not just about recruiting and retaining employees; it is about investing in the future of the organization by building a workforce that is agile, adaptable, and ready to meet the challenges of tomorrow."
To retain top talent, companies need to prioritize development programs, mentorship opportunities, and transparent career paths. Research shows that businesses investing in formal training can achieve 218% higher income per employee. When leaders feel supported and see a clear trajectory for their careers, they are far more likely to remain with the organization. These initiatives not only build loyalty but also strengthen the foundation for a sustainable leadership pipeline. For additional insights into workforce strategies, check out our jobs and workforce guide.
As construction projects grow more complex, steady and capable leadership is critical for success. General contractors who combine efficient hiring processes, competitive compensation, and robust development programs will position themselves to lead in this evolving landscape. Those who fail to adapt risk falling behind as key talent migrates elsewhere.
General contractors (GCs) are pulling out all the stops to attract senior construction leaders in today’s competitive job market. A key factor? Building a strong employer brand that highlights the company’s values, workplace environment, and standout projects - elements that resonate with top-tier professionals.
Offering competitive compensation packages is another major draw. This includes not just salaries but also benefits and performance bonuses that make the role more appealing. Beyond pay, many GCs are turning to technology and social media to expand their reach, using these platforms to connect with candidates and boost their visibility in the industry.
To keep talent engaged, career development opportunities are becoming a priority. Leadership training, mentorship programs, and other growth initiatives show a commitment to professional advancement. Additionally, GCs are addressing long-term talent needs by investing in apprenticeship programs and partnering with industry networks or executive search firms. These strategies not only help fill immediate leadership roles but also create a steady pipeline of skilled professionals for future projects.
The construction industry is grappling with a major challenge: an aging workforce that’s leaving critical gaps in leadership and skilled labor. With projections showing that about 41% of the U.S. construction workforce will retire by 2031, companies are under pressure to fill these roles with capable replacements. This shift is creating fierce competition for younger professionals and putting succession planning at the forefront of industry concerns.
Compounding the issue is the difficulty in attracting new talent. A lack of substantial investment in education and training programs has made it harder to bring fresh workers into the fold. To address these hurdles, many companies are turning to leadership development programs, mentorship opportunities, and targeted training initiatives aimed at equipping the next generation with the skills and knowledge they need.
The need for proactive planning has never been clearer. By preparing for these workforce changes now, the construction industry can position itself to adapt and remain resilient in the face of these challenges.
Modern technical skills play a key role in recruiting senior construction leaders. These skills ensure candidates can handle complex projects, adapt to new technologies, and set a strong example for their teams. While leadership and communication remain vital, technical know-how directly impacts credibility and project outcomes.
Today's construction leaders are expected to blend technical expertise with strategic thinking and financial insight. Proficiency in project management software, advanced construction methods, and specialized industry tools is highly sought after. These abilities not only support organizational progress but also help leaders tackle the ever-changing challenges of the construction field.
