Construction Insights: 2026 HR Industry Benchmark Report

At the same time, construction HR teams are contending with critical workforce pressures:

• 32% see upskilling, cross‑skilling or reskilling as their biggest hurdle
• 25% say a shortage of in‑demand skills will be a major challenge
• 21% cite an ongoing shortage of labour across projects

The infographic also surfaces key industry benchmarks:

• The construction average cost per hire is $16,589, within 2–4% of national averages
• New construction hires reach full productivity in around 32 days, around 27% faster than the Australian average

Around 4.4% is the predicted base salary increase in the construction sector in 2026

Implications for construction organisations

The 2026 HRIB findings give construction organisations a clear view of where AI, skills and project delivery risks are heading, and where HR can have the most impact.

Understanding these trends and how to respond can help you:

• Tackle skills and labour shortages without compromising safety or delivery
• Use AI in ways that are genuinely useful on‑site and in the back office
• Keep workforce costs under control while wages and expectations rise
• Build a workforce that can adapt to new tools, roles and regulations

Here are some practical ways construction HR leaders can respond.

1. Turn AI from a pilot into a project‑ready tool

With only 16% of construction organisations seeing AI used extensively across the business, most value remains trapped in small pilots and individual use.

• Focus AI on concrete workflows that touch projects: scheduling and rostering, incident reporting summaries, document drafting, or turning HR data into leadership‑ready insights.
• Make it clear where AI is there to assist (e.g. drafting site communications, summarising toolbox talk feedback) versus where human judgment is non‑negotiable (e.g. safety, performance, disciplinary decisions).
• Track a small set of AI‑related measures (time saved on admin, fewer manual hand‑offs, faster reporting) to show leaders where AI is tangibly improving project delivery and compliance.

2. Build a skills engine for a constrained labour market

With 32% citing upskilling/reskilling and 25% pointing to a shortage of in‑demand skills, construction can’t hire its way out of every gap.

• Map critical roles and capability pathways, from apprentices and site supervisors through to project managers, so people can see how skills transfer across projects and contracts.
• Prioritise learning programs that blend compliance, safety and future‑skills (digital tools, AI literacy, data capture on site), so teams are ready for new ways of working.
• Use internal data on completions, certifications and performance to identify where targeted reskilling could ease pressure on hard‑to‑hire roles.

3. Compete for scarce labour with experience, not just pay

Labour is tight, and 21% of HR leaders point to outright labour shortages. While salary increases of around 4.4% are expected, experience and conditions are increasingly part of the equation.

• Use benchmark data (e.g. $16,589 per hire, 32 days to productivity) to make the case for investing in better onboarding, mentoring and development — not just recruitment volume.
• Strengthen onboarding and early‑tenure support so new hires reach full productivity faster and are less likely to leave within the first few months.
• Review how flexible work, rostering predictability and site conditions are communicated during hiring — particularly for in‑demand roles who have choices.

4. Lift AI and data capability across HR and leadership

Even where tools exist, many HR teams still feel under‑resourced and under‑equipped to deliver on AI expectations from the business.

• Treat AI as a capability and governance program, not a one‑off rollout: clarify ownership between HR, IT and the business, and set simple guardrails for use.
• Provide targeted training for HR and people leaders on how to use AI safely for drafting content, analysing metrics and modelling workforce scenarios, including what not to put into AI tools.
• Build confidence in data by improving how workforce information is captured, centralised and checked before it’s fed into AI‑powered reporting or planning.

Take our five minute AI Maturity Assessment to see where you sit and get a tailored action plan to help build your organisation’s capability. 

5. Use benchmarks to pressure‑test your 2026 workforce plan

Construction’s benchmarks offer a realistic lens on costs and timelines.

• Compare your own cost‑per‑hire, time‑to‑productivity and salary movement to the figures in the infographic to pinpoint where you’re above or below the market.
• Use those insights to adjust your 2026 plan: where you can reduce friction in hiring and onboarding, where to double down on development, and where AI or automation could take manual work off site teams.

By leveraging these insights, construction organisations can blend AI, data and on‑the‑ground expertise to create HR practices that support safer, more predictable and more profitable projects.

How can ELMO help?

ELMO is the Complete AI Workforce Platform for mid‑sized organisations across Australia and New Zealand. It unifies HR and payroll on one connected data foundation and layers native AI to turn workforce data into insight and action — helping construction teams manage skills shortages, compliance and project‑driven workforce needs with greater confidence.

Within the platform, specific solutions can help address construction’s 2026 challenges:

ELMO HR Core & Payroll – your connected, secure workforce foundation

HR Core centralises your people data, automates manual HR processes, and provides a single source of truth across sites, projects and contracts. Detailed records, automated reporting and strong security controls help you stay on top of compliance and keep sensitive employee and project data secure.

Together with Payroll, you can manage complex pay rules, project allowances and rosters accurately, reducing the risk of pay errors and freeing HR and Finance from spreadsheet‑heavy reconciliations.

ELMO Recruitment – attracting and hiring in a competitive market

With cost‑per‑hire sitting around $16,589 for construction, every role is an investment. ELMO Recruitment helps you find and hire the right talent faster, with workflows that reduce manual admin for dispersed hiring managers.

AI‑enhanced features support screening and shortlisting so your team can focus on high‑value conversations with candidates. A clear, auditable process makes it easier to coordinate hiring across multiple sites and subcontractors.

ELMO Learning – closing skills gaps and supporting safety at scale

For an industry where safety, licensing and on-the-job skills are non-negotiable, ELMO Learning helps you deliver and track training across your workforce, while ELMO’s Career Development solution connects those skills programs to clear capability frameworks and career pathways.

You can:

• Roll out and monitor compliance and safety training across sites
• Support upskilling and reskilling pathways for in‑demand roles
• Build programs that lift AI and digital literacy alongside core technical skills

Centralised reporting gives HR and leaders a clear view of who is trained, who is due for renewal, and where capability gaps may impact future projects.

ELMO Performance Management – retaining and developing your people

ELMO Performance Management connects goals, feedback and development plans so construction leaders can have more structured conversations about performance and growth.

Performance data can be used to:

• Identify high‑potential team members for advancement
• Target development opportunities that relieve pressure on hard‑to‑fill roles
• Inform remuneration decisions in line with market benchmarks and internal equity

Real‑time reporting supports better decisions about workforce design and where AI and automation can complement, rather than replace, critical roles.

Want to know more?

Explore the full infographic for a visual snapshot of construction’s AI readiness, skills gaps and workforce benchmarks — then use the insights to test and refine your 2026 workforce strategy.