It’s just smart for good business to hire minorities. Diversity has lately been a catchphrase in the construction sector, prompting trade organisations like Associated Builders and Contractors (ABC) to create inclusive policies and committees. Construction businesses are currently experiencing a variety of problems, both general and industry-specific, including a substantial skilled labour shortage and increased project complexity.
Here are four ways in which diversity will aid the sector in overcoming these obstacles.
Inclusion and diversity can reduce systemic labor shortage
The construction sector is being struck particularly hard by the skilled labour crisis that is presently affecting U.S. companies. According to the Bureau of Labor Statistics (BLS), there were 263,000 construction positions available in June 2018, up from 202,000 a year before. According to a 2017 study of members of the National Association of Home Builders, 82% of those polled anticipate labour costs and accessibility to be their top concern, up from 13% in 2012. This implies that if the business is to grow, all hands must be on board, and one answer is to prioritise diversity in order to increase the pool of potential personnel available to firms.
Furthermore, because the American workplace is growing more diverse in terms of colour, ethnicity, and gender, construction businesses that promote diversity now would be ahead of the competition. According to the BLS, white labour force participation will decline at around 17.5% by around 2060 compared to the 2015 share, while Hispanic participation will increase by 13.7%.
Inclusive environments generate greater engagement
Employees who work in a diverse workplace are more motivated and satisfied, according to studies. This is particularly necessary in the construction industry, where collaboration and excellent communication are essential. At the ABC’s 2016 conference on inclusion in construction, Kirby Wu, president of Wu & Associates, claimed that increasing diversity had benefited his organization’s image and performance.
Diversity increases productivity
Companies that are morally and culturally diverse are 33 percent more likely to outperform their competitors, according to business consultancy firm McKinsey & Company. Gender diversity within senior personnel is also linked to 15 percent higher revenue and wealth generation, according to the organization.
Hiring minorities not only promotes a pleasant work atmosphere, but it also aids construction businesses in finding the best workers by expanding the applicant pool. According to Gallup, eliminating prejudice from the recruitment process and recruiting based on skills and aptitude results in 41 percent lower absenteeism, 70 percent fewer safety issues, and 59 percent lower turnover.
Diverse teams excel in decision making and innovation
Construction crews need critical thinking abilities to analyse and fix issues, and a diverse workforce helps them do so. When confronted with a problem, a group with diverse viewpoints will arrive at a good solution sooner.
Furthermore, according to McKinsey, firms with the most culturally mixed executive teams are 33 percent more likely to exceed other teams in terms of profit. This is because putting people from different backgrounds and perspectives together encourages innovative problem solving and decision making. Leaders realise that asking individuals who think with the same approach to come up with new company solutions is unproductive; thinkers with a different approach can really weigh a diverse set of ideas and produce stronger insights.
Construction firms will not only be able to employ more people, but they will also be able to employ workers intelligently by hiring women and minorities. Promoting diversity and inclusion at the workplace and therefore increasing employee productivity, company creativity, and performance—is a proven way to ensure success in the future.