Job Switching Has Become America’s Pastime And It’s Paying Off for Workers

Job-switching has become one of the country’s leading pastimes over recent months, and ADP this week shared its corresponding wage and job growth for Q3—including within the construction industry.

US wage growth increased 3.3%, in line with growth in the months leading up to the pandemic; however, wage growth for job switchers increased 6.6% since September 2020, according to the ADP Research Institute Workforce Vitality Report.

Employment growth increased by 4.1% in September 2021.

Construction Wages up 5% Overall

For September, construction industry wages grew 5% nationally, YoY, to $31.24. For new hires, wages increased 2.5% and for switchers, it grew 6.6%. The switching rate was 21.5%.

Based on gender, the wage and switching rate for construction was 7% for males and 5.6% for females. Men comprised 79% of the switchers.

“As the economy continues to regain lost footing due to the pandemic, we are seeing pockets of unevenness in wage growth across the workforce as employers continue to offer competitive compensation, as well as in sectors such as leisure and hospitality which reported the greatest employment gains,” Nela Richardson, chief economist, ADP, said in prepared remarks.

Further, [overall], females switched jobs at a higher rate than men and outpaced their male counterparts in wage growth and job switching wage growth, though from a lower wage level, according to the report.

Midwest Wage Growth Lags

Across the US, most regions experienced similar wage growth near the national average of 3.3%, with the exception of the Midwest which came in below average at 1.7%. Job switchers saw improved wage growth at 6.6% from the previous quarter as firms compete for workers. By firm size, employees from mid to large size firms saw higher wage growth than those employed at small businesses.

Across all age groups, employment growth was the most significant for employees aged 24 or less and workers over the age of 55, possibly reflecting those rejoining the workforce post-pandemic. Female wage growth has surged to 4.5%, in part because they are coming from a lower wage, while the increase for men has been much more tepid, only at 2.4% in September 2021.

Technology Can Help to Offset Rising Staffing Costs

Tom Donnelly is President of BrightView Landscape Development, a national operator based in Blue Bell, Pa., and covers commercial, residential and retail property, among other sectors.

BrightView has a construction workforce of about 2,300 people with 27 offices across the country. Roughly 400 people, or less than 20% of its workforce is typically in an office. 

It has leaned on new technology tools such as Microsoft’s application, Power BI, to operate more efficiently when it comes to day-to-day duties such as scheduling, electronic time capture and materials and equipment distributions.

Donnelly tells GlobeSt that by better managing staff and resources, he can offset potential compensation spikes while keeping his company productive.

“It is unbelievable what technology is now capable of doing,” Donnelly said. “We are focused on retaining our existing employees and have purposefully empowered our superintendents as the face of the company for our field workers.

“They serve as the critical link between the field and the support team in the office. Superintendents are a resource for planning, training, safety, and the customer experience. Throughout the pandemic era, superintendents have fostered career path opportunities, been available to assist the foreman and field crews, and most importantly nurtured a culture of teamwork on job sites.”