The construction industry in 2018 is seeing notable increases over previous annual numbers for both hiring and spending, and the Bureau of Labor Statistics predicts strong industry-wide growth over the next eight years.
That means construction now faces the same staffing challenge as many other industries in a low-unemployment environment: growing firms are drawing talent from a very tight labor pool. Given that qualified candidates with accounting and finance skillsets are also in high demand regardless of industry specialization, how should construction firms address this niche area of their hiring strategy?
We asked Aston Carter account executive Amy Jeffers. She’s been involved in talent recruitment for over a decade, with five years of experience serving the accounting and finance needs of construction industry clients. Her insights depict a bright future for construction that’s worth planning for now.
Winning The Bid With A Plan In Place
As the pace of construction increases into this next market cycle, accounting and finance talent is at a premium. Bids are coming fast and furious, and adequate resourcing can be a challenge. How should firms address their staffing needs proactively?
Jeffers suggests initiating staffing planning further upstream in the bid process. She says, “For any bid a firm has in motion, it’s vital to ask what the project would require in terms of on-site/field project finance staff, or potential corporate adjustments to the support team you’d have in place should you win the bid. With the tight labor pool, it’s much more necessary to understand what your eventual needs will be at the staff level, getting the plan in place and evaluating contract needs and durations early in the planning process.”
Surveying Current Resources
The first step construction firms can take toward creating a staffing strategy that can be executed at the time of a bid award is deciding how — or whether — to repurpose current internal staff for the upcoming project.
“There are plenty of options available for a good staffing strategy, but they all depend on how you want to deploy your current internal team,” says Jeffers. “If you’d prefer to move your best accounting and finance talent to a critical project, develop a plan for back filling their day-to-day responsibilities. Or if you prefer to keep your internal resources in a more centralized and responsive role for multiple active bids, you may want to look into bringing in external long- or medium-term talent on a project basis. It all depends on your resources, budget, project load and timelines.”
Making Room For Accounting and Finance Staffing In Project Timelines
When to hire can have as big of an impact on a construction project budget as the “how” aspect of the staffing plan.
Jeffers says, “Clarifying your project timeline can be tricky, but makes a big difference in how well you’re able to create a sound accounting staffing plan. Initially, any project will require higher-level positions such as an on-site cost controller, project controller or a financial program manager that's going to be involved from day one. Then once the project's underway, you’ll see an influx of invoicing and receivables requiring transactional-level staffing down the workflow of the project. In order to attract the best talent for each role, it’s important to start off with an understanding of projected contract durations, expectations and deliverables. Reputation matters in a market where all companies are fighting for the same talent. How organized a company is with its planning and recruitment says a lot about its company culture. Culture and reputation win top talent!”
How Specialization Matters
Construction skill and experience is a niche subset of an already tight pool of available accounting and finance labor. However, it’s important not to compromise and cast too wide of a net at the risk of poor hiring and harm to the financial organization.
“If an accounting candidate doesn’t have construction industry experience, it's typically not possible for them to transition seamlessly into a role within the industry,” says Jeffers. “When somebody is stepping into, say, project accounting/controller or a cost manager type roles, they have to be able to understand the nuances of the budget, what scheduling looks like from start to finish and how to bill the project accordingly. But equally important are the specialized communication abilities that allow accounting and finance professionals to translate financial strategy from corporate decision-makers to on-site individuals and PM’s.”
Construction firms are among the many businesses affected by reporting requirement changes to leased assets and revenue recognition. These medium-term projects at the corporate level can involve staffing accounting and finance consultants with specialized skillsets.
According to Jeffers, the kind of specialization needed by construction firms dealing with these changes is different than the day to day labor pool they need to draw from for on-site or project based talent. She says, “Unlike typical accounting or finance construction talent, consultants with experience in leased assets or revenue recognition projects tend to transition well across industries, so the candidate pool for those types of projects doesn't necessarily have to be industry-specific. It’s more skill-specific, which doesn’t mean the labor pool is any less tight. With the demands of these changes, it still pays to be proactive!”
Competing For Talent
In construction, you either win the bid or you don’t, so it only makes sense for operational styles to be somewhat reactive on a structural level. That tendency can lead firms into some difficult territory given the current labor market, where the competition for top talent can seem like a game of musical chairs.
The roles in the hiring process have flipped, with companies needing to promote themselves to qualified candidates rather than the other way around. Says Jeffers, “I’ve found myself coaching construction firms on selling themselves as a destination for top candidates. One of the main things to articulate is where finance stands in your organization in terms of respect and partnership. That gives candidates a lot of insight. And you have to make strides toward a more enjoyable culture, because candidates tend to stay in the industry, and your reputation matters when it comes to that initial attraction of the talent in the market.”
There is also good news on the horizon for construction firms looking to attract accounting and finance candidates. Jeffers explains, “Recent grads are very interested in earning project accounting experience and gaining industry experience. The labor market continues to be tight, and competition for top talent is intense, but construction is also in a good position to be capitalizing on and be selective with early-career accounting and finance talent.”
Incorporating Hiring Strategy Into Future Growth
As the industry ramps up for growth, construction firms are now faced with an opportunity to implement efficiency-enhancing initiatives, such as software installs and equipment purchases, that will save costs further down the road. Not all are taking full advantage.
Jeffers recommends a proactive approach to planning the labor requirements of such initiatives. “Many of the construction firms I work with had been putting more money towards talent and less money towards things like upgrades and the systems that would allow for them to stay in the new age, this is starting to change as companies are continuing to do well financially and are well staffed” she says. “But the two are related, since implementation requires preparation for additional staffing, and planning for both at the same time can help mitigate costs.”
With construction spending just recently reaching pre-recession levels in some markets at the same time as historically low unemployment, the new reality of accounting and finance hiring may seem like unexplored territory for construction firms. Don’t be late to adjust.
Do you have a staffing partner staffing partner who can help you navigate the current labor pool in both accounting and finance and your specific industry? If not, contact Aston Carter now to see how a partner with industry specific knowledge can help you build a more effective strategy.
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