Diversity, equity, inclusion and belonging (DEIB) are imperatives that enhance an organization's success. Building a culture that encompasses DEIB and allows stakeholders to thrive can create opportunities for organizations, and help them overcome the substantial labor challenges within today's construction economy.
Let's take a look at the current environment in the construction and infrastructure industry. The historic amount of infrastructure investment occurring in North America is a positive development, but organizations are facing labor shortages and supply chain challenges that affect all stages of development.
It's an interesting time for organizations in the construction and infrastructure sector. Those with thoughtful and integrated DEIB strategies in place are at an advantage in overcoming these workforce challenges.
Massive Investments, New Challenges
In the United States, the Bipartisan Infrastructure Law is making huge investments in infrastructure, creating the need for hundreds of thousands of additional jobs each year. North of the border, the government of Canada has committed $180 billion over 12 years through the Investing in Canada Plan, launched in 2016.
Infrastructure spend is a good thing for citizens. It means faster commutes, better healthcare and a stronger economy. Unfortunately, there is a labor shortage significantly impacting the current infrastructure pipeline.
The lack of labor is affecting the ability of contractors to complete projects on time and on budget, and even resulting in them turning down work due to resource restraints. Factor that in with supply chain issues arising from COVID-19 and knock-on inflation, and our ability to translate these funds into actual working infrastructure is threatened. Those with established DEIB systems and cultures are in a great position to attract more talent to their organization.
How DEIB Can Help Fight Construction's Labor Shortage
Reacting to this labor shortage, companies are providing salary increases, bonuses and other incentives to attract and retain talent. However, unlocking a larger labor pool is key to fighting the shortage of workers in the construction and infrastructure industry.
Integrating DEIB into hiring practices is vital to attracting diverse candidates. To unlock its full potential, though, companies need to be implementing best-in-class DEIB practices and integrating them into company culture for the long term. Workers who perceive initiatives as short-term and opportunistic may reject the efforts and look to other industries or companies for work.
DEIB in the Hiring Process
For companies that haven't fully integrated DEIB into their culture and operations, it's never too late.
Investing in inclusive hiring practices is a great place to start. The hiring process is where prospective employees will get a first look at your company and its philosophies. Companies can use the following DEIB strategies in the hiring process to appeal to a broader audience:
Adjust your marketing strategy.
If you are not receiving diverse applications from a job posting, it could indicate an issue with your DEIB policies. When recruiting, make sure you are appealing to a diverse audience. Sometimes job postings are inadvertently written in a way that only appeal to certain people, subsequently closing the door to other candidates. Ensure you have multiple eyes on a draft job posting, and you may want to consider bringing on an external consultant that specializes in DEIB.
Flexibility is key.
Do not ask for criteria that is not critical to the job itself. A basic example of this is not requiring a bachelor's degree if it is not actually critical to the job. You are closing the door to candidates that might be a great fit but do not have a university degree. Be open to trade school or work experience in lieu of a bachelor's degree if it suits the job.
Widen your net.
Seeking employees from parallel industries or non-traditional routes is a great way to increase your access to the talent pool. If hiring for a job in construction, you could reach out to candidates from a parallel industry such as the design industry. Also, look at hiring through a non-traditional route such as a veteran recruitment program. People from a military background are often very skilled and hard-working. These attributes are perfectly suited to the construction industry, which requires project milestones to be completed on rigorous schedules.
Integrating DEIB into Company Culture
It is important to integrate DEIB into the corporate culture to retain employees for the long term. DEIB cannot be a band-aid solution that stops being a priority when there is no longer an urgent need. If employees aren't happy with the company culture, they will go to another organization, or even a totally different industry.
One-size-fits-all policies do not work.
People are no longer accepting these policies, and nor should they. Such policies disproportionately affect women and minorities. COVID-19 resulted in many women leaving the workplace to focus on personal duties, and minorities were more likely to be let go. By creating flexible workplace policies, companies are building a culture that will allow different people to thrive at work.
Have diversity in all levels of the company.
A 100% Caucasian team likely doesn't have perspective on whether the culture is welcoming to people of color, and a leadership team of all men likely won't be able to implement policies that proportionally affect women and minorities. When culture is typically built from the top down, it is important to have diversity at every level of the company. This will provide different perspectives and ensure employees at all levels see an upward path for themselves. Companies should also consider creating a DEIB committee that provides training and support to all levels of the company on such matters.
Promote pay equity.
Race and gender still play a role in salary and upward trajectory, and result in women and minorities being paid less than Caucasian men. To foster a positive culture, ensure you are transparent about pay and provide salary bands. Consider bringing in an external consultant to assist with pay equity policy and procedures.
Job sites should be designed with diversity in mind.
Working on a job site should feel safe and welcoming for all workers. While this should seem straightforward, historically, and still to this day, there have not been designated washrooms for women on site. Personal protective equipment has been designed for men, so it can be uncomfortable and unwelcoming for women. With these things in mind, it is no wonder that only 1 in every 10 construction workers in Ontario are women.
Conclusion
DEIB should be a priority for every company. It should not take a labor shortage to motivate construction and infrastructure companies to develop and implement DEIB policies. In general, organizations should be striving to make positive, long-lasting changes. When done thoughtfully, these strategies will attract a diverse range of employees into the construction and infrastructure sector and ensure they stay for the long term. When employees feel they belong, and feel safe and supported at work, they are more productive and loyal. These factors will help our countries build the vast amount of infrastructure that is so desperately needed.
Written by Elena Theodoropoulos, vice president, Construction & Infrastructure Group, NFP Canada.
Sources and Further Reading
- DEIB at NFP: An Ongoing Effort
- 4 Best Tips for Diversity and Inclusion in Recruitment (helioshr.com)
- Addressing the US construction labor shortage | McKinsey
- Construction Workforce Shortages Risk Undermining Infrastructure Projects As Most Contractors Struggle To Fill Open Positions | Associated General Contractors of America (agc.org)
- Diversity and Inclusion in the Workplace: The Latest Best Practices (helioshr.com)
- Diversity Equity and Inclusion: The HR Leader's Guide to DE&I (helioshr.com)
- Infrastructure Canada - Investing in Canada Plan - Building a Better Canada
- Strategies to Attract and Hire Veterans to Diversify Your Team (helioshr.com)
- Strengthen Your Team with a Veteran Recruitment Program (helioshr.com)
- What Should Employers Know About the Paycheck Fairness Act? (helioshr.com)
- Why Your Hiring Practices Could Be Part of the Diversity Problem (helioshr.com)