How can the construction industry retain Gen Z workers?

The National Student Clearinghouse Research Center reports between 2019 and spring 2024, enrollment of bachelor’s degree students fell by 3.6% and associate’s degree enrollment fell by 15.9%; during the same time, vocational enrollment rose by 4.6%, according to For Construction Pros.

ADP Research published labor market data that shows the blue-collar share of employment for workers ages 20 to 24 was 18.6% in January 2024—2.3 percentage points higher than that of the same age group in January 2019 and 2.5 percentage points higher than that of workers ages 25 to 39. Factors contributing to Gen Z’s increased interest in the trades include stability; good earning potential; hands-on learning; career development; and technological integration.

This growing interest gives the construction industry an opportunity to attract and retain more workers to help combat labor shortage challenges.

For Construction Pros shares the following strategies companies can use to retain Gen Z workers.

1. Provide career development opportunities. It is important employers emphasize a clear career path so they show their commitment to their employees’ success and young workers can envision their future at the company. Employers can also offer talent management tools to help managers track progress so workers receive the training and guidance needed to advance their careers.
2. Offer a path to entrepreneurship. Many Gen Z workers have an entrepreneurial spirit and want the freedom to be their own boss. Instead of being afraid workers will leave to start their own businesses, construction companies can use that ambition as a retention tool by providing resources that teach workers how to run a business. Workers may stay in the industry longer if remaining with their employer gives them what they need to one day run their own company.
3. Develop tech-forward jobs and training opportunities. Younger workers want opportunities to learn new skills related to technology such as artificial intelligence and drones. Employers who invest in training programs and technologies that teach these skills can remain relevant in the job market and show the industry is dynamic.
4. Offer competitive pay. Companies should keep pace with salary expectations and regularly compare their compensation packages with industry, age and geographical standards. It is important to offer attractive wages that keep young workers engaged.
5. Provide a tech-savvy workplace. Gen Z values tech-enabled and mobile-friendly experiences, and employers can leverage technology platforms that help simplify processes such as reimbursements, scheduling and payroll. This can help create a work environment that feels intuitive and responsive.
6. Offer competitive benefits tailored to younger workers. Although traditional benefits such as medical and retirement plans are important, Gen Z workers also seek perks such as mental health counseling, days of service, pet insurance and flexible work schedules. An ADP Employee Pulse Survey of 3,000 full-time employees shows paid family and medical leave, employee training and tuition reimbursement are among the most desired benefits for young workers.