The construction industry has been facing a critical shortage of skilled labor for over two decades, and now, as the Baby Boomers and Generation X begin to retire in larger numbers, the future of the workforce falls increasingly on younger generations. Enter Gen Z, the tech-savvy, self-aware, and work-life balance-focused generation that’s already causing a stir in various industries.
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According to recent findings from SurveyMonkey, younger workers, particularly Gen Z and Millennials, prioritize personal needs over work in ways previous generations haven’t. This includes a rise in “quiet vacations” (where they take time off without much fanfare), mental health days, and using sick time for self-care.
But for those of us running offsite construction factories—where production needs to stay on schedule—this change in workforce dynamics can feel daunting. After all, producing modular homes, SIPs, or CLT panels on time isn’t a job that can wait for someone’s next quiet vacation.
It’s time to adjust our perspective. Instead of seeing Gen Z as a generation lacking the work ethic of its predecessors, we need to embrace new ways to engage this emerging workforce. By understanding their desires and motivations, we can create a workplace that not only attracts younger workers but retains them, ensuring the continued success and profitability of our factories.
Here’s how we can do it.
Rethink the Workday: Flexibility Over Rigidity
One of the most prominent characteristics of Gen Z workers is their desire for flexibility. Unlike Boomers, who prided themselves on showing up at the crack of dawn and staying late, Gen Z is more concerned with achieving results in a way that suits their lifestyle. And guess what? This doesn’t necessarily mean they won’t work hard—it just means they want to do it on their terms.
For offsite construction factories, this could mean rethinking the traditional 9-to-5 workday. Could shifts be more flexible? Could workers start earlier or later depending on their personal preferences? Some factories have already started experimenting with “compressed workweeks,” where employees work longer days but get an extra day off. This could appeal to younger workers who value work-life balance but also want the opportunity to put in extra effort when needed.
The key is to ensure flexibility while maintaining productivity, which could mean leveraging technology to track results rather than time in the office.
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Invest in Training and Career Development: Growth Matters
Unlike the older generations, who often worked their way up through sheer determination and time, Gen Z is looking for something more structured in terms of growth and development. They want to know how they can progress in their career, and they want to know it now.
For owners and management, this means making clear pathways for advancement within the factory. Whether it’s through formal apprenticeship programs, certifications, or even mentorship opportunities with seasoned employees, giving Gen Z workers a sense of direction is crucial. Offsite construction factories can be the perfect breeding ground for innovation and advancement if younger workers feel supported in their career progression.
Additionally, younger workers have a keen interest in learning new technologies. With offsite construction’s reliance on digital tools like BIM (Building Information Modeling) and AI-driven machinery, showcasing the opportunity to work with cutting-edge tech can be a huge draw. Offering tech-forward training programs is not only a way to attract Gen Z talent but also a way to future-proof your workforce.
Embrace Their Desire for Purpose: More Than Just a Paycheck
While wages will always be a factor in employment decisions, Gen Z is known for prioritizing purpose over profit. They want to work for companies that align with their values and contribute positively to society.
For offsite construction, this is a major opportunity. We’re building the future—whether it’s affordable housing solutions, green building practices, or innovative modular designs, our work literally shapes the world. Tapping into this sense of purpose can attract younger workers who care about sustainability, community, and innovation.
Showcasing your company’s values and the impact of the projects you work on can go a long way. Is your factory building eco-friendly homes or contributing to disaster relief? Make it known! Celebrate your factory’s role in improving housing affordability, reducing waste, or helping rebuild communities. Gen Z will feel more engaged knowing they are part of something bigger than themselves.
Mental Health and Wellness: It’s Non-Negotiable
Gen Z is the generation that’s bringing mental health to the forefront of workplace conversations. SurveyMonkey’s findings revealed that 36% of Gen Z workers have taken mental health days as a form of “self-care” in the last year, compared to just 30% of Gen X. Whether it’s stress, burnout, or simply needing a break, younger workers aren’t afraid to admit when they need time off to recharge.
For factory owners, this means creating a culture that prioritizes wellness. Offering mental health days, encouraging breaks, and providing access to resources like counseling or wellness programs can make your factory an appealing workplace for this generation. Even simple things, like allowing workers to take mental health breaks during the workday or providing spaces for quiet reflection, can make a difference.
If mental health is stigmatized or ignored, you may find it harder to retain younger workers. Creating an open, supportive environment is key to reducing turnover and keeping production lines running smoothly.
A New Take on Benefits: It’s Not Just About Healthcare
While healthcare benefits will always be a priority, Gen Z is looking for a more holistic approach to employee perks. They’re interested in things like tuition reimbursement, student loan assistance, paid volunteer days, and even gym memberships. To retain younger workers, factories should consider updating their benefits package to include perks that appeal to this generation’s interests.
Additionally, younger workers often value experiences over traditional material perks. Hosting team-building events, offering opportunities for travel (even if it’s to a different factory location), or providing chances to attend industry conferences can go a long way in building loyalty.
And don’t forget: tech-savvy perks like remote work opportunities (where possible) or the ability to work on personal devices can be a huge draw for younger workers. Even though factories are hands-on environments, there may be opportunities for workers to handle administrative tasks or planning remotely.
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Fun Matters: Don’t Forget the Culture
Gen Z values a positive workplace culture—one where people feel valued and respected, and where work can also be fun. Factory work may not always be glamorous, but that doesn’t mean it can’t be engaging and enjoyable.
Consider hosting team competitions, offering rewards for hitting production targets, or incorporating some level of gamification into the work process. A little fun can go a long way toward keeping the team motivated, especially when deadlines are tight.
Don’t forget to recognize individual achievements and celebrate wins, no matter how small. Acknowledging hard work helps build a sense of belonging, which is key to retaining any employee—especially younger ones.
Modcoach Note
The construction industry may have struggled with a labor shortage for decades, but by embracing Gen Z and their values, we can turn this challenge into an opportunity. Offsite construction factories are at the cutting edge of the future of building, and with the right adjustments, they can be the cutting edge of employment practices as well.
By offering flexibility, career growth, purpose, and a positive workplace culture, we can not only attract but retain the next generation of workers, ensuring that our factories remain profitable, productive, and desirable places to work.
The key to bridging the generational gap isn’t about expecting Gen Z to adopt the values of the past—it’s about meeting them where they are and building the future together.
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