2024's People Report: It's Getting Ever Harder to Hire, So Get Up to Date on Needs and Wants

ABC Supply President and CEO Keith Rozolis put it as plainly as anyone in LBM this year: “The only sustainable strategic competitive advantage a business has is its people." If that's the case, what's the environment for finding and developing talent these days? To find out, Webb Analytics asked three of the best recruiting firms in construction supply: SnapDragon Associates, Misura Group, and Building Gurus. Here's what they said.

What's the Hiring Outlook for 2025?

Construction Supply leaders are optimistic about business prospects next year, the recruiters said. As a result, companies are seeking to improve their bench strength, hire for greenfield activities, and bring in people to succeed soon-to-retire leaders, SnapDragon's Mark Barnard and Cassie Fosher said in written replies to Webb Analytics.

At The Misura Group, "Increased productivity seems to be the theme across the broader economy," Tony Misura wrote.

"After 2023’s challenges, we revamped our research, sourcing, and added additional outreach channels and steps to our recruiting process for our clients," Building Gurus' Rikka Brandon wrote. "As a result of this additional work, we closed 2x as many searches in 2024 as we did in 2023. But, the level of effort required to find, engage, and ultimately place people who have been there and done that before has definitely increased."

How Have Job Candidates' Expectations Evolved?

"The good ones know they can demand more and get it," Barnard and Fosher wrote. Those demands begin with wages but quickly spill over into covering relocation costs, retirement contributions, and work/life balance. "Sales candidates continue to expect that if they're bringing in sales, they will have. a fair amount of freedom," Brandon added.

Misura said he urges companies to avoid basing compensation parameters on internal data and/or on tenure in the company. Instead, employees should to be paid at a level related to what they can be expected to contribute to the company's future growth, he said.

How Hard Was it to Fill Positions in 2024 Compared with Past Years?

Definitely harder, all three said. Snapdragon's Barnard and Fosher cited four reasons why:

1. "Uncertainty about the market's direction. Good people with good jobs tend to hang tight when there are economic concerns.  

2. The cost of relocation is a big factor now.  Anyone can sell their homes today, but replacing them can be tricky due to increased rents, interest rates, and home prices.  

3. Supply concerns when hearing about potential tariffs on imported goods.

4. We are an aging workforce and it is starting to show."

Brandon said LBM operations have continued to struggle to attract, engage, and retain Millennial and Gen Z talent. One way she and the other recruiters responded has been to look more often at people working in other industries with skills that suggest they'll succeed in construction supply.

Which Types of Jobs Were Hardest to Fill?

At Misura Group, Tony Misura cited positions that paid $90,000 to $120,000 annually. He said candidates in such households face multiple challenges if they want to move, including the (likely) loss of a current low-interest mortgage, the need for a spouse to also find work in the new location, and the potential loss of free childcare provided by nearby grandparents. Prospects also are weighing remote vs. relocation opportunities. "If someone can make $80,000 per year on a remote basis, given the perpetual costs around relocation, does it make sense for them to move for $110,000?" Misura surmised.

Snapdragon was more general. "There is no easy job fill right now," Barnard and Fosher declared. "We have to dig on every position we take on to find the quality person our clients need us to recruit for them."

How Are LBM Companies Viewing Succession Planning Today?

"They know it’s important, but it doesn’t really get attention until it’s urgent," Building Gurus' Brandon wrote. "I understand: Succession Planning is complicated, emotional, and not something that can be done in an afternoon. But, there are some smart and strategic companies that recognize that if they want to not only survive, but thrive in the next five to 25 years they need to start tackling this issue."

One sign of that last-minute planning showed up in Misura's review of project flow in 2024. After two robust initial quarters, "Q3 was like someone turned the lights off" amid concerns about the presidential election, Misura said. Then business resumed in the fourth quarter because "every leader is evaluating talent needs to hit 2025 budget expectations," he continued, adding: "Lack of effective succession planning remains the No. 1 factor forcing independent LBM companies to be consolidated."

At Snapdragon, "Many clients in the past talked about establishing 'next man up' strategies, but few did anything more than talk about it.," Barnard and Fosher wrote. " Today ... most companies are aware of the need for succession planning and more and more are putting together strategies to address these needs.  Speak with a business leader who found themselves in desperate need due to an unplanned retirement.  They will tell you how they learned a hard lesson and how they do not intend to repeat history."