Diversity: The Solution to the Construction Industry’s Labour Shortage

It is a known fact that the construction industry is progressively struggling to recruit new workers while also dealing with a labour shortage. If construction and engineering companies want to stay relevant and ahead of competitors, they will have to think creatively to attract, hire, and retain a more diversified workforce.

Our team has come together to provide industry insights and tips for companies hiring and retaining employees who have historically been segregated and overlooked in recruitment, such as the Indigenous Peoples of Canada, women, and other visible minority groups. While some companies have been slower than others in this regard, other organizations are leading the way. Continue reading to explore how the construction industry can embrace diversity to break down barriers while addressing the current labour shortage head-on.

Cultivating a Diverse Workforce

The construction industry has made significant strides towards achieving diversity, equity, and inclusivity (DEI) in recent years. However, there is still much work to be done.

Not only is committing to diversity and inclusion the right thing to do, it’s good business. Research from the Canadian Construction Association (2019) has revealed several advantages of workforce diversity, which has been shown to positively impact business operations. These benefits include increased productivity and revenue, reduced employee turnover, a positive safety culture, expanded market share with supplier diversity, accelerated innovation and an enhanced reputation leading to an expanded customer base.

That said, diversity and inclusivity must be more than buzzwords on job advertisements if businesses want to successfully achieve DEI in the workplace. Organizations will have to take time to learn and implement DEI initiatives at all levels company-wide if they are to reap the benefits of a truly diverse and inclusive work culture.

Here are some of our top strategies for fostering a safe and diverse workforce:

• Actively recruit from diverse talent pools.
• Eliminate exclusive language from job postings/advertisements.
• Question standard job requirements, considering those that may exclude underrepresented groups unnecessarily.
• Review screening/hiring/advancement practices to recognize unconventional talent and cultural/gender differences.
• Create mentorship programs for underrepresented groups.
• Develop a workplace diversity program and inclusion policies.
• Provide DEI training for all employees.
• Assess business/employment practices that could provide barriers to underrepresented groups.
• Develop and promote employees from underrepresented groups to senior roles.

By developing a more diverse, equitable and inclusive approach to recruiting and retention, organizations can both remain competitive during a looming labour shortage and propel the industry forward into a brighter future.

Building Stronger Indigenous Relationships

According to an article by On-Site Magazine (2022), Indigenous workers are currently underrepresented and underutilized in construction, representing just one in 10 jobs in the industry. Indigenous Peoples are also the fastest growing population in Canada (growing by 9.4 per cent between 2016 and 2021) and the youngest population in Canada (about 28 per cent were under the age of 25 in 2021), highlighting the need to tap into this demographic of workers.

Given our country’s colonial history and the importance of reconciliation in Canada, we recommend additional practices for this specific group, in addition to the ones above.

Here are some additional Indigenous-specific practices for recruiting and retaining Metis, First Nations and Inuit workers in Canada:

• Participate in job fairs and career days within Indigenous communities, schools and training institutions.
• Partner with Indigenous communities.
• Provide Indigenous students with internships to give them training/experience.
• Conduct company-wide Indigenous cultural and history training.

By putting these practices into play, Canadian companies and Indigenous Canadians can forge better connections to create meaningful relationships and launch the rewarding careers of thousands of bright and capable people—while at the same time—combating the construction industry’s labour shortage.

Recruiting and Retaining Women in Construction

Despite accounting for half of the population, female workers make up only 5 per cent of Canada’s skilled trades professionals working in construction.

On a positive note, strong gains are being seen in the number of women joining the industry. Last year, according to a report by Statistics Canada (2023), the number of women in Canada’s construction labour force increased by over 25,000.

Although there is an increasing acceptance of equal gender representation in the workforce, the numbers reveal there is more work that needs to be done. Women are an enormous potential workforce for the construction industry, and recruiting women is one key strategy to cutting into this labour deficit.

So, what’s holding women back? While many women can have satisfying careers in construction, many face discrimination and can be made to feel unwelcome. According to a recent survey by On-Site Magazine (2024), only 42 per cent of women felt welcome upon entering the construction industry. Women in the construction industry still face adversity and encounter barriers as they progress throughout their careers. Some of these barriers include earning respect, the sector’s ignorance of the problem and gender segregation.

Construction companies that want to recruit enough women to combat the labour shortage will have to focus on removing barriers for women. They will need to recognize the crucial role that workplace culture plays, and how a toxic culture can drive women away from a firm, and the industry entirely. A critical component of being an employer of choice is actively creating a diverse and inclusive environment offering equal opportunities for women and men on site.

In addition to the DEI initiatives mentioned above, employers can use some additional strategies to recruit and retain women to their organizations:

• Address inappropriate behaviour towards women.
• Implement work-life balance initiatives and offer childcare support.
• Ensure equal pay and advancement opportunities.
• Speak with women at local schools, colleges and universities about a career in the trades to dismantle the negative stigma around women in construction.
• Provide PPE that fits.

Moving Forward

Though the industry has work to do in terms of diversity, equity, and inclusion, we are on the right track. The old boys’ club is slowly collapsing, and a younger, more diversified group of talent is leading the industry to new horizons.

Employers in the industry are seeing the positive impacts of DEI initiatives firsthand, such as improved business operations and reduced impact of the industry’s looming labour shortage.

If organizations can use the strategies discussed above to cultivate a diverse workforce, build stronger Indigenous relationships, and recruit and retain women, employers are guaranteed to gain an upper hand and remain competitive as waves of retirements continue to hit the industry full force.

Get in touch with us today to learn how following these tips and other strategies can benefit your company's growth and success!