Construction Skills Gap

The Construction Skills Gap 2025: Construction Companies Must Retain Top Talent


The UK construction industry faces an unprecedented challenge: an extra 217,000 workers will be needed by 2025 to meet the demand for construction work. Yet talent retention remains one of the most pressing issues for construction companies across Britain. As specialist construction recruitment consultants, we’ve witnessed first hand how returning to fundamental retention strategies can transform workforce stability and project delivery. 

The Current State of Construction Talent Retention in the UK 

The construction skills shortage has reached critical levels in 2025. Over 35% of construction workers aged over 50 are approaching retirement, whilst 69% of adults would not consider a construction career. This perfect storm of demographic change and perception challenges means that retaining existing talent has never been more crucial. 

Construction companies that fail to prioritise retention face significant consequences. Research reveals that 75% of construction professionals feel that worker fatigue is currently a major issue due to the lack of talent, creating a vicious cycle where overworked employees become more likely to leave for competitors offering better work-life balance. 

2025 Salary Trends in the Construction Industry 

As of early 2025, the construction industry continues to adjust its compensation practices in response to ongoing economic factors, including inflation and labour market dynamics. Base salary increases for construction professionals are projected to average 5.2 percent in 2025, reflecting the sustained demand for skilled labour in the sector. 

This trend aligns with broader industry observations. For instance, Workers in the construction sector are anticipating an average pay rise of 4.5% in 2025, up from 3.7% in 2023. This increase reflects the growing demand for skilled professionals in the industry and the need for employers to remain competitive in attracting and retaining top talent.   

The construction industry, however, appears to be experiencing higher-than-average increases, underscoring the persistent demand for skilled professionals and ongoing economic pressures.

Regional Construction Salary Variations  

Salary benchmarks vary significantly across different regions in the UK:  

  • London: Remains the highest-paying region, with Project Manager and Senior Project Managers earning £55,000 – £75,000  
  • East Midlands: Project Managers and Senior Project Managers can expect £40,000 – £65,000 
  • West Midlands: Project Managers and Senior Project Managers can expect £40,000 – £67,500 
  • North West: Salaries for Project Managers range from £45,000 – £67,500  
  • Yorkshire: Salaries for Project Managers range from £45,000 – £65,000 

For a comprehensive breakdown of salary bandings across various roles and regions in the UK construction industry, click here for your free copy of our Salary Bandings Document.   

Why Construction Companies Are Struggling to Keep Skilled Workers 

The Perception Problem 

The construction industry continues to battle outdated perceptions. Jobs within the sector are considered “dirty, stressful and unsafe”, despite significant advances in technology and safety standards. This perception not only affects new talent acquisition but also influences existing workers’ commitment to long-term careers within the industry. 

Workforce Demographics and Physical Demands 

The aging workforce presents unique challenges for construction employers. Being an industry that is very physically demanding, it’s likely that these older and more experienced workers will seek less strenuous roles or early retirement, taking decades of knowledge with them. 

Regional Disparities 

30% of UK construction firms are concentrated in London and the South East. Wales and the North East hold just 4% and 3% of construction jobs, respectively. This concentration creates intense competition for talent in certain regions whilst leaving skills gaps in others. 

Essential Strategies for Construction Talent Retention and to Bridge the Construction Skills Gap

  • Competitive Compensation and Benefits Packages 
  • Prioritising Health and Safety Excellence 
  • Creating Clear Career Progression Pathways 
  • Embracing Technology and Innovation 
  • Building Strong Company Culture 

The Role of Specialist Construction Recruitment Agencies 

Working with experienced construction recruitment consultants can significantly improve retention outcomes. Specialist agencies like Atkins Search Recruitment understand the unique challenges facing the industry and can help companies: 

  • Identify potential retention risks before they become departures 
  • Develop targeted retention strategies for different worker demographics 
  • Source replacement talent quickly when retention efforts aren’t successful 
  • Benchmark compensation packages against market rates 

Construction Apprenticeships: Building Tomorrow’s Workforce Today 

The 2024 Open University Business Barometer highlights how many employers are turning to apprenticeships to bridge their skill gap. However, the same report found concerning gaps in retention planning for apprentices. 

Successful apprenticeship programmes require: 

  • Structured mentoring throughout the programme 
  • Clear employment pathways upon completion 
  • Competitive apprentice wages that reflect value 
  • Regular feedback and development reviews 
  • Long-term Benefits of Improved Talent Retention 

Invest in Construction Recruitment Agencies

Recruiting skilled talent is costly, but losing it is even more expensive. Every time a trained team member walks away, your business absorbs the loss in productivity, institutional knowledge, and often, significant retraining and hiring expenses. 

In 2025, workforce retention has become a core business imperative. Competitive compensation is essential, but it’s only one piece of a broader value proposition. Employees stay when their work environment feels sustainable, systems are intuitive, and their time is respected. 

That requires building flexibility into your operations. Features like self-scheduling, simplified shift swaps, and clear PTO policies reflect a company that understands its workforce’s needs. The same applies to wellness benefits such as mental health resources, fitness reimbursements, and ergonomic improvements are no longer perks; they’re table stakes. Equally critical is long-term growth. Employees who see a path forward are far more likely to stay engaged.  

Employee retention is the result of deliberate structure, ongoing investment, and operational transparency. Organisations that prioritise workforce stability are better equipped to retain top talent, execute efficiently, and lead in the construction market. 

This is where Atkins Search adds real value. We are a specialist recruitment agency that tap into active and passive talent pipelines, navigate complex compliance requirements, and rigorously pre-screen candidates for both technical capabilities and cultural fit.  We will provide employers with a range of benefits, including access to critical skills, engaging with passive talent, enhancing employer branding, possessing industry knowledge, and providing more data points for informed decision making, which in turn will increase employee retention.

Companies that successfully retain skilled worker’s experience: 

  • Reduced recruitment costs: Replacing skilled construction workers can cost up to 50% of their annual salary 
  • Enhanced project delivery: Stable teams develop better working relationships and efficiency 
  • Improved safety records: Experienced workers make fewer mistakes and mentor others effectively 
  • Stronger client relationships: Consistent project teams build trust with clients 
  • Better company reputation: Word-of-mouth recommendations from satisfied employees attract top talent

The Future of Construction Recruitment 

The construction industry’s talent challenges won’t disappear overnight, but companies that return to retention basics whilst embracing innovation will thrive. At a basic level, the skills shortage will prevent the UK construction sector from being able to deliver critical infrastructure projects and meet ambitious housing targets unless immediate action is taken. 

Success requires a holistic approach that addresses compensation, career development, safety, and company culture simultaneously. Companies that view retention as an investment rather than a cost will build competitive advantages that extend far beyond their workforce. 

Partner with Atkins Search Recruitment 

At Atkins Search Recruitment, we understand that successful talent retention begins with finding the right people in the first place. Our specialist construction recruitment consultants work with clients across the UK to develop comprehensive talent strategies that encompass both acquisition and retention. 

Whether you’re struggling with high turnover rates, need to benchmark your retention strategies, or want to build a more stable workforce, our team has the expertise to help. Contact us today to discuss how we can support your construction talent retention goals. 

Ready to transform your construction talent retention strategy? Get in touch with our specialist construction recruitment consultants to discover how we can help you build a more stable, skilled workforce that delivers exceptional results for your clients. 


Frequently Asked Questions About Construction Recruitment 

What is the biggest challenge facing construction recruitment in 2025?

The UK construction industry faces a perfect storm of challenges: an aging workforce with 35% of workers over 50 approaching retirement, combined with only 31% of adults considering construction careers. This creates intense competition for skilled construction workers and makes talent retention absolutely critical for project delivery.

What are the most effective construction worker retention strategies?

The most successful construction companies focus on five key areas: competitive compensation packages including performance bonuses, excellent health and safety standards, clear career progression pathways, investment in modern technology and training, and building strong company culture through employee recognition programmes. Atkins Search recruitment helps you effectively implement these five key areas.

How can construction companies attract younger workers?

To attract younger talent, construction companies must challenge outdated perceptions by showcasing technological innovation, offering apprenticeship programmes with clear career paths, providing competitive starting salaries, and emphasising safety improvements and work-life balance initiatives.

What role do specialist construction recruitment agencies play in talent retention?

Specialist construction recruitment consultants like Atkins Search Recruitment help companies benchmark compensation packages, identify retention risks early, develop targeted strategies for different worker demographics, and source replacement talent quickly when needed. They understand industry-specific challenges and provide tailored solutions.

How important are apprenticeships for construction talent retention?

Apprenticeships are crucial for building tomorrow's workforce, but retention planning is essential. Successful programmes include structured mentoring, clear employment pathways upon completion, competitive apprentice wages, and regular development reviews. Companies that invest properly in apprentices see higher long-term retention rates.

What are the regional differences in UK construction talent availability?

30% of UK construction firms are concentrated in London and the South East, whilst Wales and the North East hold just 4% and 3% of construction jobs respectively. This creates intense competition for skilled workers in southern regions and potential construction opportunities in the Midlands and Yorkshire .

How does poor talent retention affect construction project delivery?

High turnover rates lead to project delays, increased costs, safety concerns from inexperienced workers, reduced quality standards, and damaged client relationships. Stable teams develop better working relationships, improve efficiency, and deliver more consistent results.

What construction skills are most in demand right now?

The highest demand is for specialists in Building Information Modelling (BIM), project management, health and safety coordination, and sustainable construction techniques. Digital skills are increasingly important across all roles. Explore our current job opportunities.

How can small construction companies compete with larger firms for talent?

Small construction companies can compete by offering personalised career development, greater variety in project types, closer relationships with senior management, faster decision-making on progression, and often better work-life balance. Partnering with specialist recruitment agencies helps level the playing field

What benefits do construction workers value most?

Beyond competitive base salaries, construction workers prioritise comprehensive health insurance, pension contributions, professional development opportunities, tool allowances, performance bonuses, flexible working arrangements where possible, and strong health and safety standards.

How long does it typically take to see improvements in construction worker retention?

Initial improvements can be seen within 3-6 months of implementing retention strategies, but significant cultural changes and long-term retention improvements typically take 12-18 months. Companies that take a systematic approach and measure progress regularly see the best results.

What are the warning signs that skilled construction workers might leave?

Common warning signs include reduced engagement in team meetings, declining performance quality, increased absence rates, reluctance to take on new responsibilities, expressing frustration with career progression, and informal discussions about other opportunities. Regular one-to-one meetings help identify these issues early.

How can construction companies improve their employer brand?

Construction companies can improve their employer brand by showcasing safety achievements, highlighting technological innovation, promoting employee success stories, maintaining active social media presence, partnering with local schools and colleges, and encouraging positive employee reviews on platforms like Glassdoor.

What impact does the construction skills shortage have on project costs?

The skills shortage drives up labour costs, extends project timelines, increases subcontractor expenses, and can lead to quality issues that require expensive remediation. Companies with strong retention strategies maintain more predictable costs and delivery schedules.