Navigating the Labor Shortage for Home Service Businesses

The labor shortage isn’t new, but for home service businesses, the challenge is becoming more pressing. Whether you run a plumbing company, HVAC service, electrical outfit, or general contracting firm, finding and keeping skilled workers has become one of the toughest obstacles to growth. A combination of retiring baby boomers, a shrinking skilled labor pipeline, and increasing demand has left many business owners struggling to staff their teams.

But it’s not all bad news. With a little creativity and a renewed focus on workforce development, home service business owners can not only survive the labor shortage, they can thrive in spite of it. In this post, we’ll take a look at what’s driving the labor shortage and offer creative, actionable strategies to attract and retain top-tier talent.

What’s Causing the Labor Shortage?

The current labor crunch in the home services industry is driven by several converging factors:

Aging Workforce: Many experienced tradespeople are reaching retirement age. According to the U.S. Bureau of Labor Statistics, the median age of workers in construction and extraction occupations is higher than the national average.
Lack of Young Entrants: Younger generations have been steered toward four-year college degrees, leaving a gap in vocational and technical training pipelines.
High Demand: The housing boom, increased home renovation activity, and growing demand for energy-efficient upgrades have all contributed to a surge in service requests—without enough people to meet the need.
COVID-19 Fallout: The pandemic accelerated retirements and caused many workers to reconsider career paths, further shrinking the labor pool.

Strategies to Overcome the Labor Shortage

To move forward, business owners need to think outside the toolbox. Here are a few ideas and strategies you can implement to bring in and retain a workforce in the current environment.

1. Build a Talent Pipeline from Within

Waiting for the perfect candidate to walk through the door isn’t a strategy, it’s a gamble. Instead, build your own skilled workforce through training and apprenticeships.

Launch an Apprenticeship Program: Pair experienced workers with entry-level hires and create structured on-the-job training. Consider partnering with local trade schools or workforce development boards (check out Apprenticeship.gov for resources).
Upskill Existing Staff: Encourage and support continuing education, certifications, and specialty training. Investing in your team makes them more valuable—and more likely to stick around.

2. Get Creative with Recruiting

If your job ads look like everyone else’s, you’re missing a huge opportunity. Today’s workers aren’t just looking for a paycheck, they’re looking for purpose, flexibility, and growth.

Highlight Career Pathways: Make it clear that this isn’t just a job, it’s a career. Spell out advancement opportunities in your job descriptions and interviews.
Tap Into Unconventional Talent Pools:
- High school graduates unsure about college
- Military veterans looking to transition into civilian life (see Hire Heroes USA)
- Career changers seeking hands-on work
- People in underrepresented communities who may have been excluded from traditional pathways
Use Video Job Posts: A short, engaging video from your team can be far more compelling than a block of text.

Company competition (aka team building) at Chicken N Pickle

3. Strengthen Your Employer Brand

Just as you market to potential customers, you need to market to potential employees. What makes your company a great place to work? Why should someone choose your business over a competitor’s?

Showcase Your Culture: Use your website and social media to share employee spotlights, team outings, and behind-the-scenes moments.
Highlight Your Mission: Many job seekers want to know that their work makes a difference. Talk about your commitment to quality, community, or sustainability.
Gather and Display Reviews: Encourage current and former employees to leave honest reviews on sites like Glassdoor or Indeed. Transparency builds trust.

4. Offer Benefits That Matter

In a tight labor market, traditional perks may not be enough. Look for ways to stand out by offering benefits that resonate with today’s workforce.

Flexible Scheduling: Where possible, offer staggered shifts or four-day workweeks to give workers more control over their time.
Tool and Gear Stipends: Help cover the cost of tools, safety equipment, or uniforms.
Mental Health and Wellness: Access to counseling services, wellness programs, or even regular check-ins can go a long way.
Retention Bonuses or Profit Sharing: Reward loyalty and performance in ways that reinforce team spirit.

5. Leverage Technology to Do More with Less

While no app can replace a skilled technician, technology can help you stretch your workforce further and reduce burnout.

Use Scheduling and Dispatch Software: Automate routine tasks to streamline operations and reduce frustration for both staff and customers.
Remote Estimates and Diagnostics: Use video calls or customer-uploaded images to conduct initial assessments before dispatching a tech.
Field Service Management Tools: Platforms like ServiceTitan or Jobber can help manage jobs, invoices, and customer communication from one dashboard (compare tools here).

6. Create a Positive Exit Strategy

Here’s something many business owners overlook: some of your best advocates could be your former employees.

Conduct Exit Interviews: Find out what worked and what didn’t. This feedback is gold.
Keep the Door Open: Employees may leave for new opportunities, but they might come back—especially if you maintain a positive relationship.
Ask for Referrals: Departing team members may know others who would be a great fit for your business.

Stay Successful in Challenging Times

The labor shortage isn’t going away overnight, but that doesn’t mean you’re powerless. By thinking long-term and creatively investing in your people, you can position your home service business to thrive, even in a challenging hiring climate.

Remember: The companies that succeed in this environment will be those that view workforce development as a strategic priority, not just an HR problem.

Resources for Further Reading:

About the Author Allen Harkleroad

From a degree in archaeology, to teaching English in Japan and working as a surf instructor in Hawaii, Allen has had an unconventional journey to his rise in the marketing world where he has worked for more than 15 years. His broad and unique insight into organizations and people has made him an asset to businesses in every market.