The construction industry is deploying student loan repayment assistance, mobility bonuses and what one executive calls “re-recruiting” to address a critical shortage of skilled labor driven by the rapid expansion of data centers across the United States. Executives from Turner Construction, Clayco and DPR Construction outlined their strategies during a recent Construction Dive virtual event, describing how traditional hiring approaches no longer suffice for projects requiring electricians, pipefitters, plumbers and welders with sophisticated electrical and mechanical skills.
The data center boom reshapes labor demand
The scale of data center development has fundamentally altered the staffing challenge, said Jerry Crawford, managing director at Turner Construction. Unlike traditional large projects, data centers are being built simultaneously across the country, creating competition for the same pool of qualified workers in multiple locations. “There is a workforce shortage … but it’s also a tremendous workforce opportunity,” Crawford said during the session.
The implications extend beyond construction contractors. Facility managers depend on many of the same electricians, HVAC technicians and other skilled tradespeople to maintain buildings, replace equipment and complete renovations. The growth of digital infrastructure is worsening shortages, with the average hiring time for skilled workers reaching 56 days, according to Randstad North America. That timeline creates pressure on companies to find new ways to attract and keep qualified personnel.
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Beyond paychecks: How companies are responding
DPR Construction has built a formal mobility program to persuade employees to take assignments in locations where workers are particularly difficult to find. In addition to per diem or living allowances, the company provides a project incentive, mobilization bonus, travel stipend and a pay differential while employees participate in the program, Talent Acquisition Manager Brian Schneider said. “These are the kinds of things that DPR has identified as being competitive,” he said.
Clayco has taken a different approach with what Chief Talent Officer Katie Lane describes as a “first of its kind” student loan repayment assistance program. The company helps workers with outstanding education debt, recognizing that financial burdens affect retention decisions. But money alone cannot solve the problem, Lane noted. “Nobody’s going to win retention on compensation alone.”
Clayco instead focuses on what it calls re-recruiting—continually engaging people who already work for the company rather than treating hiring as a one-time transaction. The company invests in leadership development, site visits by senior executives, team activities and an extended onboarding program that provides support during an employee’s first six months to a year. Training programs show employees how they can advance within the company, and those efforts prove especially important on remote data center projects where workers spend extended periods away from home.
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Building pipelines for the long term
Developing a sustainable workforce requires companies to look beyond poaching existing skilled workers. Contractors need to bring additional people into construction through apprenticeships, technical education and workforce development programs, the executives said. They must also make career paths more visible to younger workers who may not consider construction as an option.
Local partnerships play a growing role in that strategy. Turner, Clayco and DPR work with local subcontractors, government officials and communities where major projects are being developed rather than relying entirely on traveling workers. Those relationships provide longer-term benefits because local workers will still be needed after builders finish a project and move on to the next assignment.
“Who’s going to operate and maintain these facilities after we leave and go build the next project?” Crawford asked. The answer, he said, is the local workforce that companies help develop today.
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