managing construction claims

Managing Construction Claims Risk In The Age Of Gen Z & The Great Resignation

Construction and design professional firms that ignore how to effectively manage their workforce during this Great Resignation and post-Covid remote-work era will likely experience a significant increase in professional liability and construction defect claims.

In late 2021, the nation’s “quit rate” reached a 20-year high and hasn’t really slowed down. Surprisingly, some studies of the “Big Quit” put professional and business services at historic rates of almost 4 percent, only slightly below food service and retail industries.

Turnover rates among the design team or the general contractor side of construction can have devastating impacts on errors in development of the plans and specification, project scheduling, and onsite relationships that avoid lawsuits before they happen. For decades, we’ve known that an inexperienced workforce or under-staffing is a major contributing factor in construction-related lawsuits.

This exposure may only increase during the Great Resignation as the oldest of Generation Z (those born between 1997 – 2012) start graduating from college and professional schools just as their Millennial (born between 1981-1996) colleagues begin moving into senior management roles.  Gen Z will become the largest generation to date (estimated in the U.S. at 86 million, as compared to the 72 million Millennials).

“Businesses should prioritize understanding Gen Z to maintain engagement with future employees and customers – developing a strong “Plan Z,” according to the global accounting firm EY. “The world is changing faster than ever, and this digitally native and globally conscious generation … is prepared to adapt to the rapidly transforming environment. Numerous other studies confirm these findings, including the Deloitte Global 2022 Gen Z and Millennial Survey, now in its 11th year.

So, how can the construction and design professional industry mitigate its risk against liability during period of high turnover and a changing workforce, especially when widely held belief persists that these two younger generations lack the construction industry’s historic commitment to excellence, attention to detail, and job stability?  Read more here