In an industry facing unprecedented challenges, The Bonadio Group’s Construction & Real Estate Team conducted a comprehensive survey to analyze compensation and benefits trends among New York construction companies and contractors. This study provides a data-driven snapshot of how companies are navigating rising labor costs, workforce shortages, and evolving employee expectations.
The survey collected insights from over 200 construction firms and contractors across New York State, including small, mid-sized, and large general contractors, specialty trade contractors, and construction management firms. These organizations operate in both commercial and residential construction sectors, offering a broad perspective on industry-wide compensation strategies. The data was gathered through direct employer surveys and industry benchmarking, ensuring an accurate reflection of current compensation trends and challenges in the state’s construction landscape.
Check out these key findings from the study & see how industry trends are shaping compensation and benefits in 2025.
Key Findings
1. Rising Wages Amidst Labor Shortages
- Wages have increased by 12.4% on average compared to the previous study.
- Labor shortages persist due to an aging workforce and difficulty attracting younger talent.
- To stay competitive, firms are offering higher salaries and expanded benefits.
2. Increased Compensation Strategies
- 79% of companies offer cash bonuses as a key incentive.
- Employers are implementing performance-based bonuses, including:
- Project completion incentives.
- Productivity rewards.
- Referral bonuses for skilled labor recruitment.
- Over 90% of firms provide retirement plans, aligning employee and company success through profit-sharing.
3. Impact of Rising Construction Costs
- Increased wages and labor shortages are squeezing profit margins.
- Higher costs are leading to project delays and, in some cases, cancellations.
- Contractors are passing labor cost increases onto clients, particularly in the housing market.
4. Training & Workforce Development
- Companies are investing in apprenticeship programs, mentorships, and continuous learning.
- New York State’s ON-RAMP program is expanding to support workforce development in large construction projects.
5. Underutilized Employment Tax Credits
- 82% of respondents were unaware of available federal and state employment tax credits.
- Programs such as the Work Opportunity Tax Credit (WOTC) offer significant financial benefits for hiring veterans and underrepresented groups.
6. Expanding Employee Benefits & Well-Being
- Firms are enhancing benefits to improve retention, including:
- Flexible work arrangements
- Mental health support & wellness programs
- Financial planning assistance
- Companies are investing in advanced safety monitoring systems and smart personal protective equipment (PPE) to improve worker safety and satisfaction.
7. The Role of Technology in Compensation & Workforce Planning
- AI, robotics, and digital tools are creating demand for specialized skills, leading to higher pay for tech-savvy professionals.
- AI is being used to drive data-driven compensation strategies, forecast workforce needs, and tailor benefits packages.
Download the Full Study
The construction industry is undergoing a significant transformation in response to labor shortages, rising costs, and evolving employee expectations. To explore the full insights, including salary breakdowns for 18 different positions, wage increase plans, and health care cost strategies, download the complete 2025 Compensation & Benefits Study.
If you have any questions regarding the survey, feel free to reach out directly to Nancy Cox, ncox@bonadio.com or Joseph Peresan at jperesan@bonadio.com.
This material has been prepared for general, informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Should you require any such advice, please contact us directly. The information contained herein does not create, and your review or use of the information does not constitute, an accountant-client relationship.
