Why this financial year is the best time for construction companies to review their talent strategy

The UK construction sector had a rough financial year last year, but things are already starting to look up. Inflation is falling, productivity is normalising, and the industry as a whole is stabilising.

Many organisations are in the process of budgeting, or perhaps they’ve already budgeted. Break periods like this are great for companies to review their strategy.

As recruiters, we know that the right talent strategy can make or break a company’s financial year. It’s worth getting it right; if you haven’t thought about it thoroughly, now might be a good time.

Here’s why:

Economic recovery

As mentioned, the UK construction industry is forecasted to see significant growth in the coming years, with an 8% increase in 2024 and another 7% in 2025. This growth is attributed to a strengthening economy, decreased inflation, and more projects.

This doesn’t just mean it’s “safer” to focus on a talent strategy. A solid talent acquisition strategy could make the most out of this growth.

So, when a company takes a strategic approach to sourcing, developing, and retaining the right talent, it ensures that it can handle the volume of work expected from market expansion more efficiently and innovatively.

For example, a team skilled in the latest construction technologies and methodologies can lead to more competitive bids, higher-quality outcomes, and more efficient project delivery. As the market grows, this advantage becomes increasingly significant because it allows firms to undertake more complex projects with higher profit margins.

Sustainability initiatives

The construction sector is under increasing government pressure to meet sustainability and decarbonisation goals, so 80% of companies now see this as a priority.

It’s carrot and stick. On the one hand, there are incentives to shift towards sustainable building practices. On the other hand, there are more and more repercussions for not doing so. Staying on top of this agenda is key to the long-term success of construction companies.

Meeting these sustainability requirements requires the right talent—people with the skills and experience to comply with increasing regulations and incentive requirements. So, the new financial year is an ideal opportunity for firms to reassess their talent needs, identify skill gaps, and invest in training or hiring to fill those gaps.

Flexibility

The new talent year is also a great opportunity for companies to review their recruitment practices, especially within new budgets. Opting to bring recruitment in-house might initially seem the better choice, as it promises immediate cost savings compared to third-party recruiters.

However, there are a few problems with this. Firstly, companies cannot scale the recruitment team in response to changing needs. This, combined with big employee overhead costs, means a general lack of flexibility in any talent strategy, which may compromise a company’s finances over the long term.

Moreover, in-house teams are far less discrete. Construction is inherently close-knit, so it is important to maintain confidentiality about hiring moves to protect a firm’s reputation.

So, engaging third-party recruiters might be the better option. Third-party agencies can inherently be scaled up or down, as there’s no long-term commitment. This adaptability is crucial in an industry where project demands and workforce needs can shift rapidly.

Additionally, the discretion offered by external recruiters ensures that companies can make strategic hires without tipping off competitors or unsettling current teams until the timing is right.

Perhaps most compellingly, third-party recruiters bring their extensive personal networks to the table, providing access to a pool of candidates far beyond the reach of public job listings. This access to a hidden market of potential hires can be a game-changer for construction companies seeking to attract top-tier talent who may not be actively searching on job boards.

Pinnacle Recruitment

This new financial year presents a strong opportunity for companies to review their talent strategy and reap the benefits moving forward. The economy is rebounding, and new challenges, particularly from the sustainability push, are on the horizon.

Pinnacle takes a diligent and proactive long-term approach to helping firms find the right talent—skilled people who match each construction firm’s culture and goals.

Our strong network of connections helps you find candidates off the general market and build long-term relationships to ensure your team has the best talent.

If you’re looking to build up your team for the new year or would like to talk through your recruiting strategy, please don’t hesitate to reach out at [email protected]