Despite challenging economic headwinds, half of the construction companies surveyed anticipate they will grow headcount during the remainder of 2023, according to new research by the global accounting and business advisory organisation, BDO.
The research finds that roles in skilled fieldwork, engineering and procurement are most in demand globally across the construction industry. However, these roles are becoming less attractive to Next generation talent. As a result, the construction industry is losing ground in the global war for Next generation to industries such as financial services, technology and life sciences.
- 51% of construction companies surveyed are planning to grow headcount during the second half of 2023.
- Yet half (50%) say they find it challenging to attract and retain early career professionals. Only one in six (16%) companies in the industry report no difficulties in hiring to fill vacancies.
- Next generation ranks construction as only the eighth most popular career option among 11 industries rated in BDO’s research.
- Only 28% of students say they are «very interested» in a career in construction.
The global survey from BDO captures 713 perspectives on the construction industry. It comprises viewpoints from 336 construction industry decision-makers and 378 representatives from Next generation across 10 markets spanning five continents.
The research finds that the construction sector is navigating a perfect storm of challenges including inflationary pressures, supply chain challenges, a rising cost of finance and increased regulatory burden. These problems are made worse by the challenge of recruiting and retaining early career professionals.
Next generation – individuals born between the late 1990s and early 2010s – emerge from BDO’s research as an empowered and socially motivated generation who prioritise personal development opportunities and wellbeing at work.
However, industry executives do not fully appreciate the factors that motivate this generation’s career choices. For example, while Next generation prioritise work-life balance and being respected at work as the most essential criteria for their future career, industry executives believe that students and young professionals are most strongly motivated by financial reward. In reality, financial reward is only the fifth most important criteria for young people.
Climate impact is now also a leading motivator for Next generation talent. Six in ten (60%) of the young people in the research rate having a career in an industry that positively impacts climate change as important.
As a result, the construction industry faces an image problem. Not only do a third (32%) of students and young workers believe the industry has a net negative impact on the climate, but a majority (55%) believe working in the sector may put their physical or mental health at risk. Construction is perceived as involving hard labour, longer working hours and lower pay compared to other industries.
There is a window of opportunity for construction companies to correct these misconceptions before they cause lasting harm to the industry’s talent acquisition potential. The industry has a strong story to tell about its leading role in supporting the transition to net zero carbon through the construction of new energy efficient buildings and the retrofitting of older assets, yet this impact is not currently recognised.
There are reasons to be optimistic: students surveyed by BDO report that a greater focus on promoting the new science and digital skills involved in the construction industry, and its role in the energy transition, will make a career in the industry more attractive to them in future.
Arjan Endhoven, BDO’s Head of Global Real Estate & Construction, commented:
«In many regions the construction industry has rebounded after the pandemic. Demand for affordable housing, essential infrastructure and greener buildings is high. Existing properties need energy saving investments as demanded by government regulations, banks, investors and tenants.
The construction industry needs to recognise 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. The industry has certainly a great story to tell but needs to talk a different language and place greater emphasis on the issues that appeal most to Next generation workers.
The results of BDO’s global survey highlight that the construction industry has an image problem in the minds of Next generation. Executives don’t fully understand what motivates this new generation. Yet these problems are not insurmountable. Construction companies need a fresh approach to their talent strategy and to dial up communications on their environmental and social credentials. With the right approach they can show an ambitious generation entering the workforce that it is a place where they can develop skills with long-term career progression and make a personal social contribution and positive impact to environmental change».
Note to editors
BDO is an international network of public accounting, tax and advisory firms which perform professional services under the name of BDO. For the year ended 30 September 2022 BDO (Including BDO's exclusive Alliances) announced a total combined fee income of more than US$ 12.8 billion, representing a year on year growth of 12.1%. BDO public accounting, tax and advisory firms provide professional services in 164 countries, with 111,307 people working out of 1,803 offices worldwide. www.bdo.global
Contacts:
Ayman Chalak
Senior Manager, Global Business Development - Real Estate & Construction
Email: Ayman.Chalak@bdo.global
Arjan Endhoven
Head of Global Real Estate & Construction, BDO
Email: arjan.endhoven@bdo.nl
Andrii Borenkov
Head of Advisory, BDO in Ukraine
Email: aborenkov@bdo.ua
Source: BDO Global