After several years of struggling with a labor shortage, replacement contractors seem to be using more robust benefits in an attempt to lure new employees, according to data from the 2018 Remodeling 550 Remodeling magazine revealed today.
In fact, contractors comprising the Remodeling 550 increased their benefit offers in eight of 13 major employment benefits this year. Health insurance, one of the crown jewels of benefits, increased the most with 83% of contractors offering the benefit this year versus 76% last year. The other big jump came in retirement/401K options. That benefit went from 61% last year to 66% this year. Also seeing slight increases were life insurance, dental insurance, disability insurance, vacation, maternity leave and paternity leave.
It’s likely those increases reflect the ongoing labor shortages many contractors are grappling as the unemployment rate hovers near just 4% — the lowest rate since 2000.
As one indicator of how contractors are being affected, recent NAHB statistics show that nearly 60% of roofers are facing labor shortages. Additionally, 91% of remodelers reported shortages of labor available to perform finished or rough carpentry work, and more than 40% said these shortages were serious, in response to special questions on NAHB’s Remodeling Market Index (RMI) survey for the 3rd quarter of 2017.
In that environment, contractors seem to be realizing they need to take proactive steps such as beefing up benefits to attract — and maintain — workers.
The Remodeling 550 membership varies a bit each year as companies enter and exit the list for a variety of reasons, such as if they were bought or began to be publicly traded.
