Navigating the talent cliff in the AEC industry

Unanet recently released its 2024 AEC Inspire Report. In this blog series, we’ll explore the topics and themes it covers and how your AEC firm can use this information to gain a competitive advantage.

Attracting and retaining top talent is not a new concern for those in the AEC industry. But the inherent challenges in those areas are becoming more complex than ever.  

Fewer people are entering the industry. Effects of the “Great Resignation” continue to be felt, with professionals quitting the field to pursue other opportunities. Top leaders are stepping back from active roles, taking decades of insight and experience with them. Hiring the right people, let alone keeping them, is becoming a serious challenge. 

It’s known as the talent cliff, and it’s something firms everywhere will be dealing with. Here’s what you can do to address it.  

What is the talent cliff?  

The talent cliff is an upcoming expected shortage of skills professionals over the next several years that will likely impact firms in many industries, including AEC. Many firms in AEC have already begun to feel its effects. 

This talent cliff has serious implications for the overall success and sustainability of firms. Not only is the talent pool shrinking – the skills gap is widening, institutional knowledge is being lost, and relationships networks are being disrupted. 

The AEC industry is aware of these problems. According to research from the 2024 AEC Inspire Report, one in three firms cites recruitment and retention as a top business concern, and nearly half list resourcing as a top project challenge.  

The problem is that the response to these challenges has been slow. In 2023, almost 50% of firms saw deteriorating staffing practices since the pandemic, specifically less tech-advanced firms.  

What firms are doing to address talent challenges 

Efforts to improve workplace practices are underway, seen in the emphasis on mobility and integration to allow employees to work from anywhere. But firms still need to do more to bolster recruitment and support retention.  

Historically in AEC, there has been a strong emphasis on maximizing revenue per professional to drive productivity. But while productivity benefits the organization, employees are looking at it from a slightly different perspective. They need to be incentivized appropriately with employee experience prioritized as highly productivity.  

The key is to foster an environment of safety and inclusivity while leveraging tech to reinforce initiatives that support a more attractive work culture. 

What your AEC firm can do to navigate the talent cliff 

So how can you create a more favorable, attractive work culture for your people? While nothing beats having an employee-centric culture, there are a few strategies you can implement to help you attract and retain the best people:  

• Monitor employee satisfaction and solicit feedback to drive meaningful action.  

• Review and adjust compensation plans against industry and global standards.  

• Establish formal organizational practices for mentorship, training and development to help employees build key skills and cultivate meaningful careers. 

• Amplify your workforce’s capabilities with tools that can automate repetitive tasks, streamline processes, and facilitate collaboration without increasing administrative burden. 

With the right cultural, operational and technological advancements, there is no need to fear the talent cliff.  

In our next post, we’ll take a closer look at how you can figure out where your firm is in its tech journey. Until then, download the entire 2024 AEC Inspire Report here.   

Looking to make business easy while freeing up more time to do the work that matters? Learn how Unanet can help. Schedule a demo today.