Construction workforce diversity improves productivity and profits (2023)

• Historically, the construction industry has lacked diversity and inclusion (D&I) initiatives.
• Creating a more inclusive workforce fosters employee creativity, productivity, satisfaction and achievement.
• Organizations that implement equality, diversity and inclusion (EDI) action plans, which can include focus groups, coaching, training and mentoring, can help foster culture change from within.
• Employees who can be themselves at work tend to thrive; Happier employees tend to be more effective, which improves the bottom line.

The construction industry gets abad reputationfor not being diverse enough. It's true that the sector is lagging behind other industries, but construction companies are beginning to foster a more diverse and inclusive workforce and are reaping the benefits.

ThatBusiness casefor Diversity shows that it drives employee engagement, job satisfaction and performance. In the 2018 report “Delivering through diversity' McKinsey finds that companies with diverse leadership teams are up to 33% more likely to outperform their peers.

Diversity and Inclusion (D&I) initiatives can also generate intangible assets such as innovative ideas and creative problem solving. Different perspectives reverse the tendencies of companies to carry on as before and reduce the risk of groupthink.

"As diversity increases in our industry, we will see increases in productivity because we will see new ideas emerge," said Jennifer Suerth, vice president of technical services atpepper construction company, wo30%of employees are women.

Productivity gains begin as companies increase recruitment and retention and improve D&I in the workplace. The result is a more efficient and effective workforce, where all employees are empowered to reach their full potential.

The importance of diversity and inclusion in construction is paramount

When Cliff Cole began his construction career over 17 years ago, he didn't really think about racing until he got his first job in Asheville, NC, where his boss had warned him not to visit a certain part of the state because it was safe for him. Not exactly what a lively, eager young college grad wants to hear.

As VDC Director at PENTA Building Group, Cole is passionate about diversity, equity and inclusion in the construction industry. He believes that with diversity comes diverse perspectives, which are much needed to help the industry thrive and innovate.

"We have the new generations in the industry," says Cole. “In order to be successful and continue the necessary growth, we must be able to improve. We have to be able to change. And that change is happening through diversity, equity and inclusion. It's really a business strategy. It will make every company better, which will ultimately make the industry better."

Cole recommends construction companies educate themselves about what unconscious bias looks like, what diversity and inclusion looks like, and why equity needs to be factored into this equation to make real change in the industry.

“You have to be able to give employees a voice so they feel included, that they belong in the conversations,” he says. “We need to be able to see how we are attracting, hiring and retaining the talent that we currently have. People are leaving this industry. It's a tough industry, but we need to get better at making it a diverse and inclusive culture across the organization."[Watch the video to learn more about Cole and his construction industry tips.]

A lack of D&I jeopardizes productivity

Despite being one of the largest sectors of the global economy, the construction industry has lagged behind productivity growth, which has slowed to $10 trillion1%last year. The result: poor performance, project management and execution, and cost overruns and overruns.

The problem can only get worse in the United States, where construction workscontribution to the economyit has reached its highest level in seven years, but companies are complaining about a shortage of skilled workers.

Recruiting talent from underrepresented groups is a business imperative. Global consulting firm Willis Towers Watson predicts that the limited diversity of the workforce is aThe 20 biggest risksfor contractors by 2027. “Diversity breeds diversity,” says Bill Noonan, head of North American Construction Customer Engagement. "Unfortunately, the opposite is also the case."

The diversity of the workforce in construction is woefully low

Recent surveys show that the industry still has a long way to go towards a diverse workplace. EDI experts in many locations around the world identify various protected and underrepresented groups. In the UK, Equality Act includes nine protected characteristics that employers must take into account: age; Disability; ethnicity (often referred to as an emphasis on inclusion of Black, Asian or Minority Ethnic [BAME] individuals and groups); Gender; gender or transgender identity; sexual orientation; religion and belief; Marriage and registered partnerships; and support for maternity and paternity regulations (or family-friendly policies).

In any area, metrics and benchmarks can be problematic. 2016 only3,2%of UK construction workers identified as BAME, and fewer than5%of the construction work is declared invalid. This provides organizations with a marker to see if they are reflecting these talent communities.

In the US, women only wear makeup9%the construction worker. 2017 held only women7%of construction management jobs in the United States, although it isAlmost twice as muchin Great Britain. Suerth says she didn't see herself as a minority until she transitioned from a female-led engineering firm to the male-dominated construction industry, where she turned an obstacle into an opportunity. "Work likewoman under constructionand with technology, it's doubly weird,” she says.

Barriers to the LGBT community are also common. In the UK, only LGBT professionals understand2%the construction worker. 2016,51%said their sexual orientation prevents them from advancing in their careers and 71% had repeatedly heard LGBT-oriented slurs at work. Not surprisingly, only 7% of LGBT workers would recommend the industry to recruits. (Data on LGBT workers is not collected by relevant U.S. agencies.)

Changing that demographic requires a change in attitude. "The fact that people can be authentic at work enables them to be successful," said David Isaac, partner and head of manufacturing and advanced technology at the international law firm.Masonic Pinsent. “This is an opportunity to attract the best talent to the company and it impacts the bottom line. That's a compelling argument, whether it's for LGBT, gender, or black, Asian, and minority inclusion."

Bring about cultural change with EDI action plans

Construction companies have engaged in initiatives to promote D&I, often wrapped up in EDI action plans. These programs include focus groups, mentoring, training and mentoring, as well as networking and professional development.

EDI the Mott MacDonald GroupManager Richard Chapman-Harris says training unconscious bias has opened up a dialogue about more inclusive language and behavior.Backward tutoringMatching senior leaders with young disabled, BAME and/or LGBT peers has also provided leaders with insight into minority experiences and supported the career advancement of trainees from under-represented groups.

“Our EDI action plan has helped the company focus on key initiatives that support:including culture, which we know requires concerted and collaborative action,” says Chapman-Harris. "Unfortunately, inclusion doesn't just happen."

EDI efforts have resulted in a cultural shift at Mott MacDonald, with 81% of UK employees feeling their colleagues take EDI seriously and 72% saying EDI policies are being implemented effectively. EDI policies have also been adopted by customers, contractors and suppliers. “We see EDI aspects integrated into our customers' offerings,” says Chapman-Harris. "In return, we also raise our expectations of our own supply chain."

Provide a support network for individuals

For individual employees, change comes slowly. Isaac, former President ofstone wall(Britain's leading LGBT charity) says: “Now there aren't many LGBT people in leadership positions. It is also important that other people in leadership positions act as allies. Stonewall found that core allies were instrumental in driving change."

Employee networks support inclusion in all aspects of the industry and provide a safe haven for dialogue between members of minorities, including LGBT employees, and their straight allies. Jamie Olsen Ferreira, Associate in Pinsent Masons Construction and Engineering and Co-Chair of the LGBT Construction and Infrastructure Networkoutside the premisessays these networks have supported and encouraged large construction companies to build their own internal networks.

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Ultimately, companies whose workforce most closely resembles the communities in which they work can gain competitive advantage. InTransportation to London(TfL), the authority behind one of the world's largest equity investment schemes, Isaac has taken note of Mayor Sadiq Khan's commitment to diversity. "Their commitment trickles through," says Isaac. "It's a very diverse workforce that extends to projects on the ground and helps create a conducive work environment where people are very effective."

D&I fills organizations with fresh ideas, fresh perspectives and a willingness to consider alternatives. With a more diverse workforce that is better at problem solving and decision making, construction companies can outperform their competitors financially and economically.equally– with inclusion and respect.

Autodesk Editor-in-ChiefMiss Robackcontributed to this article, which has been updated. It was originally released in June 2018.