According to a 2024 Construction Industry Salary Report by Moss Adams, the construction industry wage growth is anticipated to outpace inflation but lag behind the rates witnessed in previous years. This presents a unique scenario for employers and workers alike. Tricia Galvano, a Spokane-based partner at Moss Adams, emphasizes the significance of highlighting alternative benefits to attract and retain employees. Many employers are now touting nonmonetary benefits such as culture, flexibility, community engagement, and social responsibility. These strategies are aimed at standing out in a competitive market.

Benefits Packages and Salary Increases

In 2024, average construction wages in the Eastern Washington, Idaho, and Montana region are approximately 6% higher compared to 2023. Projected regional wages for 2025 are expected to rise by 4.5%. Most employers are focusing on comprehensive benefits packages rather than relying solely on salary increases. Over 80% of the 275 survey respondents are covering 75% to 100% of the medical premiums for nonmanagement employees. Additionally, 85% of companies are offering paid holidays for all employment levels. This shows a shift towards a more holistic approach to employee compensation.Succession Planning and Ownership OpportunitiesSuccession planning strategies are evolving, with some companies opening up next-generation ownership opportunities to key employees outside of a family-owned structure. Employee stock ownership plans are gaining popularity as a means to incentivize workers to be committed to the business in the long term. The owners of these companies are aging, and they are seeking the next generation to take over. This indicates a changing landscape in the industry.Compensation Trends and IncentivesCompensation trends in the construction industry are diverse. 89% of companies plan to offer bonuses as an incentive for achieving performance and productivity goals, a slight decrease from 2023. Retention bonuses are on the rise among construction companies, while signing bonuses are losing momentum. The percentage of companies planning to offer cost-of-living salary adjustments has increased by 6 percentage points to 61%. This shows that companies are constantly reevaluating their compensation strategies based on various factors.Various Compensation ComponentsRetirement benefits play a crucial role in the salary guide. Around 90% of all companies surveyed offer a 401(k) to all employees. There is also an increased interest in profit-sharing options. The percentage of companies offering union pensions has risen to slightly above 10%, while fewer companies are providing deferred compensation plans. This reflects the evolving nature of retirement benefits in the industry.Position-Specific Salary TrendsSome of the largest salary gains are seen in executive salaries in the region. CEO salaries have grown by about 13% to $172,788 from the average executive salary in 2023. Average laborer salaries have also risen by about 10% to over $56,700 from $51,300 last year. However, safety director roles, superintendents, and some administrative positions have seen a decline in average salaries. This highlights the differences in salary trends across different positions.Future Outlook and Industry ChallengesLooking ahead, construction salaries in the new year are expected to continue attracting younger workers with decent wages. Labor shortages in the industry persist, and it is crucial to promote the industry to make younger generations aware of the good salaries available. Despite a steady flow of work in 2024, pressure from interest rates and other economic factors is causing many companies to reevaluate their compensation strategies. Moss Adams' salary report serves as a valuable tool for construction companies to stay competitive in a market facing labor shortages.