BDO outlines strategies for combatting talent crisis in construction

Around half of construction companies are planning to increase the size of their workforce over the next six months with confidence in the sector slowly returning, according to a global survey by BDO.

The survey found that the sector is still struggling with skilled worker shortages, however, with 50 per cent of the corporate decision makers surveyed stating they find it very difficult to attract and retain early career professionals to roles in the construction industry.

Only 16 per cent reported no difficulties in hiring to fill vacancies.

Attracting younger talent critical

As confidence returns to the industry and macroeconomic shocks settle down, there is likely to be a shortage of skilled workers available to fill the vacancies needed to rebound quickly after three difficult years, according to the report.

“The construction industry must recognise that it risks not being able to meet demand if it cannot develop a reliable pipeline of young talent who see a bright future ahead for themselves in construction,” said BDO head of global real estate and construction Arjan Endhoven.

Construction ranked as only the eighth most attractive out of the 11 industry sectors tested among students in BDO’s research.

“Our research reveals misalignments between the values, expectations and priorities of the new generation entering the workforce and senior decision-makers in the construction industry,” said Mr Endhoven.

“The good news is that these barriers are not insurmountable. Realignment is possible if construction companies are prepared to listen and adapt to the needs of Generation Z.”

As part of its research, BDO surveyed generation Z students to rank the importance of different factors when assessing their career options.

“Students ranked work-life balance and well-being as the top factor. Just under half (48 per cent) describe this as ‘essential’ when assessing career options and a further 37 per cent describe it as ‘important’,” the report stated.

“This suggests that Generation Z feel empowered to make conscious choices about how their career will fit around other aspects of their life such as family, friends and relationships. They want to enjoy their work and choose career options that will enhance their mental and physical well-being.”

Generation Z also want to be recognised and respected for their contribution in workplace with 45 per cent describing this as essential and 37 per cent as important.

“Also among the top five factors shaping Gen Z’s decision-making is ease of career progression. Taken together, these two factors suggest that Generation Z place high importance on personal development and want to choose careers where they will be able to move up the career ladder quickly, in recognition of their performance,” the report said.

The research also found that gen Z place a high degree of importance on a career that has a social purpose or collective benefit, and the ability to work with a diverse group of people.

“This is perceived to be more important than the nature of the work itself,” the report said.

Generation Z also state it’s important that their career has a positive impact on the climate.

Around six in ten of the young people in the survey rated having a career in an industry that positively impacts climate change as at least a 7 out of 10 on a scale of importance, where 10 is extremely important. More than a quarter (26%) rated this as at least a 9 out of 10.

“While Gen Z tell us they prioritise work-life balance and being respected at work as the most essential criteria when assessing the attractiveness of future career options, executive decision-makers in the construction industry are failing to recognise this,” the report stated.

To counter the misalignments highlighted through the research, executives in the construction industry need to work hard to dispel the myths that dominate Gen Z’s thinking about the industry, the BDO report said.

“Our research suggests that there are three main areas in which construction industry decision-makers need to focus. First, challenging tired stereotypes about construction that linger in the minds of Gen Z. Second, expanding Gen Z’s view about the roles available within the construction sector. Third, exploring the positive impact that the sector can have in the race towards net zero carbon,” it said.

Given that Gen Z strongly prioritise the importance of health and well-being at work, the report said that employers in the construction sector need to demonstrate that they care about the wellbeing of their employees.

“While some roles in the sector undoubtedly involve a degree of physical labour, this is an over-simplified stereotype about working in the sector that does not reflect the broad range of roles on offer to graduates,” it said.

As well as attracting new generation talent, construction companies need to make sure they work hard to foster loyalty and retention among existing employees, according to BDO.

“Successful companies tell us they are offering training schemes to ensure existing employees have the appropriate skill levels needed to succeed, and so current staff can be upskilled to take on new positions,” it said.

“Companies are also growing their investment in diversity and inclusion initiatives to ensure all employees, regardless of background, feel empowered to succeed in the industry.”