K&B Companies are Utilizing a Range of Strategies to Minimize the Effect on Their Bottom Line
By NKBA Editorial Staff
As the kitchen and bath industry continues to navigate the implications of a significant skilled labor shortage, the NKBA has conducted the NKBA I KBIS Skilled Labor Workforce Study to better understand businesses’ experiences and expectations as they work to meet this challenge.
The survey of more than 400 NKBA members and other industry professionals explores current staffing needs, difficulties hiring skilled labor, hiring incentives, barriers to hiring, and other issues related to the shortfall.
These K&B industry pros say their workforces are predominantly (66%) comprised of full-time employees, and more than half (51%) of businesses are currently searching for more full-timers. Most (57%) are paying above-market wages – typically 8% or more — to attract and retain skilled labor. But the reality is that more than a third must resort to hiring less experienced or qualified workers to meet their basic staffing needs.
Here are some of the other key findings in the Skilled Labor Workforce Report:
Full-Time Employees Wanted
The consensus among businesses in the kitchen and bath industry is that the skilled labor shortage has risen sharply over the past five years. Specifically, 58% of K&B businesses are currently experiencing a moderate or severe shortage, up from 41% five years ago. More than half of businesses indicate the greatest need is for full-time workers. This group is the most difficult to hire – especially those with more than five years’ experience. The most in-demand positions are installers and carpenters, both cited by 42% of respondents.
Root Causes of a Persistent Problem
Businesses shared that changing lifestyle and work expectations (33%), a generational shift away from trades (29%), as well as a lack of education/training (29%) are the most common causes of the ongoing skilled labor shortage. Very few (8%) cited their hiring and retention strategies as a factor.
Scarcity of experienced workers and a general lack of applicants are the top barriers to recruitment. Others include the ability to offer competitive wages and high training costs associated with onboarding.
Feeling the Impact: Project Delays and Increased Workloads
Project delays — both starts and finishes — and increased workloads for existing employees are the biggest negative impacts on business caused by the skilled labor shortage. On average, 16% of projects are delayed due to the labor shortage. Those delays have the biggest impact on customers, primarily affecting project starts and finishes, as well as longer delivery timeframes and waits for products.
How Businesses are Coping
Businesses are adapting to the skilled labor shortage by expanding benefits and retention strategies, improving recruitment, and investing in educational programs – all efforts to attract new workers from a limited pool.
They are also doing more to improve conditions for their current employees. More than a third of the surveyed businesses (35%) have invested in digital tools and software to reduce the strain on existing staff. They’re also tapping into other external solutions by outsourcing products and services. Internally, businesses are streamlining workflows and implementing new training programs to achieve greater efficiency.
One area of opportunity in retention strategy is work-life balance. Participants cited better benefits (including work-life balance) as one of the top reasons for voluntary turnover (25%), but very few (7%) report their businesses are addressing work-life balance as part of their strategy.
“We are experiencing a major skilled labor shortage that is greatly impacting our industry, and it’s not going away anytime soon,” said Bill Darcy, Global President & CEO, NKBA | KBIS. “Kitchen and bath companies are being smart and resourceful in confronting this challenge as best they can. But tackling the underlying issues head-on requires big thinking and bigger action, from developing new educational models to changing cultural dynamics around professions we desperately need to revitalize.”
To read additional insights from K&B industry professionals, download the full NKBA I KBIS Skilled Labor Workforce Report here.
