CFMA: Talent Pipelining

Contractors will face continually worsening talent shortages through 2030.

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Those that want to continue sustainable growth must manage every aspect of their talent management processes with the same rigor they would manage a fast-track project with $100K per day in liquidated damages.

The Construction Talent War - Talent Pipelining.

On November 15th, Katie McConnell and David Brown kicked-off the first of a three-part series focused on talent.   

  1. Diagnosing the Biggest Talent Bottlenecks for CFMA Sacramento Members
  1. Fixing Your Biggest Talent Bottlenecks
  1. Building Benefit Packages and Perks Beyond Compensation for a Competitive Advantage 

A few interesting takeaways from the first session were:

  • When asked what their hiring challenges were, nearly 100% of the audience cited external market factors, which included the shortage of talent. To begin solving the problem, we must first start looking inwardly at the areas they can control and, more specifically, those that matter
  • Of the 83% of people who stated their challenge was not enough qualified talent, 50% of those also rated their Talent Pipelining process as effective (an ‘A’ or ‘B’). This is a little bit like stating your sales process is effective but not achieving the sales you want.  

The next step in solving a problem is to recognize that we may be looking at our internal processes and capabilities with more rose-colored glasses than we think. We actually may not even know what we don’t know. 




Premature Optimization
Construction technology innovation has exploded and is continuing to accelerate. The quantity of experienced talent is at a low point and will continue to decline throughout the next 10+ years. There are probably more unknowns than knowns.
Project Cash Metric and Cash vs. Margin Variance
Contracting is a very capital-intensive business and it is critical to constantly be watching cash flow performance. This metric is the highest level of an “OUTCOME” for cash flow at the project level, summarizing the performance of ops and finance.
Alignment and Ownership and Creating Value
As a construction company grows, it becomes increasingly important to align everyone on the team. Alignment comes from being transparent with your guiding principles or values and living them every day, starting with ownership.