According to a survey carried out by Construction Industry Federation, access to skilled labour is the most significant challenge facing the construction industry in Ireland, with some 75% of the organisations surveyed highlighting the issue as a priority.
Brexit, an ageing workforce and a decrease in new entrants have all been cited as reasons for the supply-demand crunch facing both Ireland and the UK, and the consequences are far-reaching. The latest CITB figures suggest that the UK needs an extra 251,500 construction workers by 2028 to meet expected levels of work. This means the industry will need to recruit an extra 50,300 new workers per year, while Irish Tech News reports that the shortage of workers in Ireland is affecting the country’s ability to meet housing targets, with concerns about achieving the goal of 33,000 homes per year by 2030. These shortages affect private housing, infrastructure and repairs and maintenance, slowing down projects and creating costly delays.
The result is a staff turnover rate of more than 30% in the construction industry, one of the highest average attrition rates across the UK and Ireland, as construction firms struggle to recruit and retain talent. There is no real pipeline of traditional skills such as carpentry, plastering and roofing, something that Barratt Redrow boss David Thomas thinks has not been helped by a drive-in past decades to encourage young people into further education rather than trades, according to a report in the BBC.
In addition, there is a shortage of workers with expertise in newer skillsets, such as building information modelling (BIM), modern methods of construction (MMC) and the integration of drones and other technologies. There is also a demand for individuals with strong technology skills, including proficiency in the software and electronic devices used in construction.
And this reduction in good, available talent has created an environment in which British and Irish workers seek to drive wages up, moving from job to job in search of better and better salaries in a candidate deprived market. This exacerbates the problem, leaving employers struggling with a revolving door of workers and the financial implications of high staff turnover.
The Hidden Drain on Profits
The cost of frequent staff replacement is much deeper than the cost of recruitment. It can cost anywhere from €9,000 – €25,000 to replace a worker, depending on the role and level of training required, but there are hidden drains on profits that many organisations don’t take into account. For example, the time and resources invested in internal administrative processes to recruit new teams, the productivity losses associated a reduced, overstretched workforce, time and money to onboard and train new starters and the overall dip in efficiencies as ongoing recruitment takes on a lead role within the business. And if these workers cut their tenure short, and leave in search of greener grass, then the costs to the business continue to spiral.
There is a host of other hidden costs which businesses rarely consider, failing to realise that high staff turnover isn’t just a human resources issue, it’s a business risk. Companies with high staff attrition will underperform compared to competitors, both financially and in terms of service levels.
- Productivity and Operational Challenges – The longer an employee works on a construction project, the more efficient they become. They acquire knowledge, learn efficiencies of speed and become more productive as their tenure progresses. When they leave, they take valuable job-specific knowledge with them such as client-specific preferences, site protocols and processes as well as valuable experience. The skills gap that is created when a person leaves creates a dip in productivity while replacement staff are sourced, onboarded and trained. This costly bottleneck not only creates a financial burden, but the quality of the work being carried out can take a hit too.
- Reduced Quality of Work – Losing experienced workers creates an experience gap which can result in a higher likelihood of errors and costly delays which have a negative impact of project timelines. A survey carried out by Cornerstone Projects found that delays can add 20% onto the estimated cost of a project, hitting the bottom line, hard. Fixing faulty work takes resources away from other projects, creating a chain of delays and financial consequences that drive costs up. Low quality work also casts a shadow over the relationship with the client, damaging the reputation of the firm – something which is way harder to fix than poor workmanship.
- Health and Safety Risks – In the construction industry health and safety is non-negotiable, but when a workforce is in state of constant flux, dangerous mistakes are more likely to be made due to lack of familiarity with safety protocols, strain on existing teams and a disruption of the safety culture. This leads to injuries, exposure to legal implications and increased insurance premiums. In the year 2023-2024 in the UK, 51 construction workers died due to work-related accidents, the highest level since 2008 – 2009, and the rate of fatal injury in construction is five times as high as the average rate across all industries, highlighting need for safety measures to be adhered to vehemently to protect the lives of workers in this high-risk sector. A rapid turnover of workers, especially those with less experience, can increase these risks as employees onboard and become familiar with site-specific hazards.
- Impact on Morale and Company Culture – Not only will the consequences of a high staff attrition rate have an impact on the relationship with the client through delays and missed deadlines, but staff morale and company culture can also take a hit. A flow of leavers and new starters creates feelings of uncertainty among teams and employees can be left demotivated and overworked. This in turn lowers morale which further reduces concentration levels and focus, increasing the risk of accident and creating a vicious cycle of inefficiencies, risk and poor client and employee satisfaction. The associated reputational damage then makes it more difficult to retain and maintain good talent, which leaves construction firms back where they started, struggling to recruit.
Not all Doom and Gloom
It’s not all bad news though. Despite the challenges, the Irish construction industry is currently experiencing a period of growth and stability, operating at around 77% capacity and some firms are getting recruitment right. UK based Lindum Group boasts high staff retention and has appeared on The Sunday Times Best 100 Companies to Work For list, while Ireland’s John Sisk & Son received a 4 out of 5 star rating on Glassdoor with 82% of employees recommending working there to a friend. This is mirrored in company profits with Lindum Group’s profits up 28% to close to £200 Million as of April 2025, and John Sisk & Son reporting an increase in turnover of 43% in the year to December 2023, generating a pretax profit of €35.9 million compared to €11.5 million the previous year.
Longevity of employee tenure is foundational to operational excellence and a powerful driver of sustainable business growth. And with recruitment within Ireland and the UK continuing to prove challenging, more and more construction firms are looking to harness overseas talent through the recruitment of skilled migrant workers from the Philippines.
Tapping into Overseas Talent
The Irish government’s employment permit system and the UK’s points-based immigration system both allow employers to sponsor skilled workers from abroad, including those from the Philippines, provided they meet certain criteria. These systems facilitate the recruitment of overseas talent to fill roles that are experiencing shortages within the UK and Ireland.
The Philippines offers a reliable pool of well-trained, English-speaking professionals who are known globally for their strong work ethic, adaptability and commitment to long-term employment.
As immigration policies shift to accommodate industry needs, and visa routes open for skilled trades, construction companies are partnering with overseas recruitment agencies to bring in Filipino workers who can hit the ground running.
Filipino workers have gained a strong reputation for their professionalism and ability to adapt to new environments and are drawn to the Ireland and the UK by higher wages that enable them to support their families. Stable, long-term jobs allow them to consistently send remittances back home and unlike the job-hopping culture of Europe, job security is a priority for Filipinos who value stability over short-term gains.
At Aureol Global Connections we have a 100% success rate in supplying the construction industry with high-volume, skilled craft professionals from the Philippines. With unique testing and selection processes carried out via our facility in the Philippines we have successfully filled more than 2,300 roles with a 99% retention rate.
This low level of employee attrition opens the door to business growth for construction firms, removing the relentless challenges associated with hiring and onboarding new staff while working to create a culture that is fostered around commitment, innovation and long-term success. By retaining skilled employees, businesses can focus on strategic initiatives, enhance team cohesion and build a strong foundation for sustainable growth.