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Expanding staffing is a priority. With 42% of Australian corporates expecting the size of their workforce to increase over the next six months, organisations are focusing on staff development. Of the four most important priorities cited by construction industry executives, three are people-related: providing an attractive workplace environment (cited by 58% as a priority), training and skills development (56%), and attracting, recruiting, and retaining employees (48%).
Australia in focus Gen Z expect better pay from a cash-strapped sector.
01 Construction
Navigating the talent crisis 02 Employment growth
The construction sector is bouncing back following difficult years and heavy impact on profits 03 Gen Z Understanding what motivates the workforce of tomorrow 04 Closing the gap Aligning the construction industry with Gen Z’s aspirations 05 Proactively altering Gen Z’s perceptions Addressing the construction industry’s image problem 06 Refreshing the industry’s
Our construction research in Australia spans 50 corporate respondents and 50 Gen Z respondents. Highlights from our research in Australia include:
A sector short on cash. Construction executives in Australia are more likely to report suffering a financial loss in the last 12 months due to contractor or supplier insolvency: 64% in Australia vs. 52% globally. Alongside staffing issues, two of the top three negative impacts affecting construction industry profit in Australia are supply chain disruptions causing delays or price increases (cited by 66% of respondents) and late payments by clients (cited by 52%). Students associate the construction sector with financial reward. Our research shows that Gen Z in Australia are more likely to associate a career in construction with financial reward compared with their global peers: 66% agree that the construction industry offers this compared with 58% of Gen Z globally. They are also more likely to perceive the industry as offering financial progression: 50% vs. 44% globally. However, Australian students are turned off construction by the prospect of hard physical work and the risk of injury, with 38% and 36% considering each of these to be one of the biggest drawbacks to working in the sector.
“The construction sector employs around 1 million workers in Australia and is one of the largest contributors to the Australian economy. The sector’s current challenges of reduced revenue growth and cash restraints, as a result of the impacts of inclement weather and supply chain costs, have highlighted the importance of enhanced operational performance, and thus the need to attract, recruit and retain talent. The results of the BDO Global Construction Survey Report highlight the key opportunities for the Australian construction sector which will lead to a more sustainable and profitable future for both the industry, and the Australian economy. There is a need for Australian construction companies to take action, and ‘walk the talk’, when considering ESG strategies and the well-being of employees. Australia has much ground to cover when it comes to sustainability reporting, and Gen Z’s are not just watching how an organisation promotes ESG in its business, but more importantly, how
a business actively participates in shifting global emissions and how ESG is impacting every business decision in an organisation. The opportunity and challenge for construction companies in Australia is to focus on enhancing their ESG strategies, which encompasses well-being, and critically analyse its value proposition for Gen Z employees. Boards and owners will need to consider how they are making their construction company ‘fit for the future’, as it will pay long term dividends for those that look beyond pay-increases, and delve further into understanding what a business can do for an employee, rather than what an employee can do for them.”
Lagging behind on the gender gap. Corporates see diversity and gender balance as one of the most important areas for the construction sector to focus on to encourage young talent to join. However, improving gender balance in line with WGEA reporting requirements is only a top business priority for 40% of corporates in Australia.
approach to recruitment, retention and diversity
07 Conclusion
BDO’s message to Gen Z Practical lessons for construction executives Countries in focus
Australia Belgium Brazil Canada Latin America The Netherlands New Zealand Norway South Africa USA 09 About BDO’s research 10 How BDO can help
Differing visions for the future of construction. The gap in expectations for the future focus of construction is particularly wide in Australia. 50% of students want to see construction focus on promoting new science to ensure it is fit for the future. 30% want to understand more about how construction is contributing to the overall energy transition. However, corporate decision-makers are less focused on these issues, with only 32% and 16% respectively highlighting these as key messages in their recruitment strategies.
Elysia Rothwell Partner and National Construction Leader, BDO in Australia
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