Why Contractors Fail at Hiring and How to Fix It with AI

Construction Champions Podcast
Sep 29, 2025
3 min read

Hiring in construction has always been tough. From labor shortages to constant turnover, contractors often feel like they’re playing a losing game. But according to Paul Sanneman, founder of Contractor Staffing Source, most builders don’t fail at hiring because there aren’t good people out there, they fail because they believe six myths that keep them stuck.

On this episode of the Construction Champions Podcast, Paul shares what he’s learned from working with over 2,000 contractors in 40+ years, and why the future of recruiting belongs to those willing to adapt to technology.

The Six Myths That Keep Contractors From Hiring Right

Paul says most contractors fall into one (or all) of these traps:

“There are no good people out there.”The truth: great employees exist, but you won’t find them if you’re only recruiting when you’re desperate.
“Employees are too expensive.”The truth: the right hire is an investment, not a cost. Bad hires are what drain your resources.
“We’ll hire when we need someone.”Recruiting must be ongoing. If you wait until you’re desperate, you’ll accept anyone who shows up.
“Job ads don’t work.”They do — if they’re written emotionally instead of mechanically. Paul explains how A-players respond to opportunity, not just tasks.
“If I pay more, they’ll stay.”Money matters, but culture and leadership matter more. A competitor can always offer a higher hourly rate.
“Recruiting is a project.”It’s not. Recruiting is a system. Like sales, it must run continuously in the background if you want results.

Why Speed and Systems Matter

Most contractors would never ignore a hot sales lead. Yet when it comes to recruiting, they move slow, sometimes taking weeks to respond to job applications. By then, the candidate is gone.

Paul emphasizes that speed-to-response is as critical for candidates as it is for customers. The first contractor to call is often the one who wins.

That’s why recruiting needs a system, assessments, background checks, video interviews, and automated follow-ups. Systems not only speed up the process but also filter out the wrong people before they hit the jobsite.

How AI Is Changing Recruiting

AI isn’t just for tech companies anymore. In hiring, AI is now being used to:

Write better job ads that attract A-players instead of average candidates.
Screen resumes and filter applicants faster.
Automate interview scheduling so no candidate slips through the cracks.
Analyze candidate fit using assessments and communication patterns.

Contractors who embrace these tools can save hours of wasted time and consistently hire better people. Those who don’t? Paul is blunt: “Adapt or die.”

Why Employees Are Your Best Investment

Perhaps Paul’s most important message is that employees aren’t a cost, they’re your greatest ROI. The right project manager, foreman, or office admin doesn’t just fill a role; they create stability, consistency, and growth for the entire company.

Contractors who cling to the belief that “labor is too expensive” often remain trapped in a cycle of burnout, turnover, and chaos. Those who invest in people build businesses that can grow, scale, and eventually run without them.