Advancing gender equality in Australia’s construction industry

Construction is one of Australia's biggest industries:

Employs 8.7% of the total Australian workforce
Contributes around 9% of the GDP [1]

Yet out of the significant population the industry employs, only 13% of the construction workforce are women.

The industry's 7.3% growth over the past five years is intensifying the demand for talent in a market expected to face a shortage of over 100,000 workers. Women represent a hugely underutilised talent pool for this industry, yet more work needs to be done to combat gender inequality and encourage more women into the construction industry.

“While there are pockets of amazing work being done, change is slow, and as soon as you stop to take a breath, you're already two steps back again. It just doesn't seem to be catching on as quickly or as substantially as we'd like it to,” says Nuria Florentino, General Manager, People and Performance, John Holland.

The factors causing low numbers

What's actually causing such a low rate of employment for women in the Australian construction industry? The pipelines to higher employment are promising – nearly 6,000 female apprentices and trainees are undertaking training in construction, more than double the number in 2019 [3]. However, there are many factors contributing to the persistently low rate of female employment in the construction sector:

Cultural challenges: A culture of exclusion, inadequate work facilities and unfriendly recruitment practices deter female participation and retention.
Lack of prioritisation: Female representation isn't being prioritised during the hiring process, perpetuating the gender gap and subsequently, possible gender pay gaps.
Limited career progression opportunities: Women are often relegated to less secure, lower-paid positions with limited opportunities for advancement, impeding their professional growth. A perceived gender pay gap may also deter women from applying for construction jobs.
Gender stereotypes: From women not believing that there are jobs suitable for them in construction trades to men not believing that female workers are capable of some roles – stereotypes are prevalent throughout the industry.

Creating change

To effect change and foster a more inclusive culture, increasing the number of women employed in the industry becomes paramount.

Encouraging more female participation helps:

Unlock new talent to help with the skills shortage
Improve decision-making through more varied perspectives
Enhance retention through better engagement
Drive success

“I've seen so much enthusiasm in the market for having more females on the team. They report that productivity goes up and that the culture on site is better. One of our clients, Fletcher Construction in New Zealand are fixated on ensuring there's a strong pipeline of female talent coming through and has established a diversity council chaired by the CEO, and it's working. Over the past two years they have increased the number of female leaders from 12.8% to 24%,” says Marc Rutherford, Associate Director, Hays South Island NZ.

Encoding change

The Victorian Government's Building Equality Policy requires that women comprise:

3% of each trade role
7% of each non-trade position
35% of management, supervisor and specialist labour roles
4% of labour hours for apprenticeships and trainees must also be performed by women

“This is all anyone is talking about at the moment. It's a key agenda discussion at every board table and at the front of everyone's mind. So, at the very least it's driving different conversations than previously had around women in construction,” says Blackburne.

If these quota numbers don’t increase, however, there’s a significant chance that there will be no culture transformation. The concept of a “tipping point” for gender equality in construction has been supported by various examples globally, where meaningful change is more likely to occur once a certain threshold has been crossed.

A study by the Peterson Institute for International Economics found that companies with at least 30% women in executive positions were more likely to have women in other top management roles too [4]. These higher thresholds enable the change to cascade from the top and gives women role models to look to when considering construction as a career choice.

“It may sound cliched, but you can’t be what you can’t see, and there just aren’t enough women in the industry, at all levels, to effect change,” says Florentino. “The needle won’t move by just hiring one woman to a team, there needs to be three or four to start influencing the culture of that team.”

In addition to meeting this threshold, not-for-profits like The National Association of Women in Construction (NAWIC) play a key role in increasing visibility for women in the construction industry and providing a supportive space for members to connect, regardless of their career stage. These organisations are instrumental in welcoming women into construction and fostering collaborations among like-minded individuals, promoting diversity and innovative solutions within the industry.

"What it has done is helped me have the conversation with my managers and leaders, it has created a sense of responsibility and it’s creating change. It’s always going to be easier to say let’s do things the same way we have always done them, so inspiring this change through regulation means that all the work of change isn’t just left to women,” says Florentino.

How to improve gender equality in the construction industry

Quotas and DE&I strategies are useful for addressing inequality across the board but are only worth implementing if they are backed by an organised effort and practical steps to break down barriers. How can we attract women into the construction industry?

“In the first instance, you need to identify your allies. You will not be able to do anything by yourself, so find allies that are at a level above you, at the same level as you and in different functions across the business,” advises Florentino. “Then find your blockers and pick just two or three to address at a time. Picking off too much just often means nothing changes.”

1. Assess Diversity, Equity and Inclusion (DE&I) in your organisation.

Conduct an assessment of your organisation and see where you're doing well and where your weaknesses are. This creates a baseline to measure improvements and allows you to identify the gaps where new strategies need to be created, or enacted. Ensure your focus on gender equality is included in the organisation's wider strategy, in business decisions, and set diversity KPIs.

2. Set leadership targets

To be a part of the solution, organisations in the sector need to not only have female leaders but also have those who are already working successfully in the sector at the forefront. Organisations should be aiming for at least one-third of women in leadership positions to achieve the critical mass necessary to see tangible change in the company culture. This approach will not only attract younger women to the workforce but also challenge traditional beliefs held about the industry.

3. Offer mentorship and encourage network groups

Women in the construction industry, especially young women, need mentorship and networking opportunities to thrive. With few female role models to rely on, these support systems are crucial for helping them navigate and succeed in the field.

Establish mentorship programs with experienced female leaders already in the business, or from external associations to help guide, support and deliver career advice. Encourage technical and further education that will assist to advance them in their career progression.

4. Address workplace policies and facilities

Promote work-life balance and address any potential gender disparities for construction workers.
Consider offering:

Flexible work arrangements
Parental leave policies
Separate facilities on construction sites, such as adequate restrooms and change rooms

By not only attracting but also retaining the women that enter the industry through improved work practices and policies, the culture can begin to shift, allowing the next generation to gain visibility of female role models, envision a place for themselves in the construction industry and continue to increase the rate of change.

[1] https://www.trade.gov/country-commercial-guides/australia-building-construction#:~:text=2022%2D07%2D19-,Overview,record%2044%20new%20infrastructure%20proposals

[2] https://www.humanrights.unsw.edu.au/research/commentary/senior-school-girls-construction-career

[3] https://hia.com.au/our-industry/newsroom/industry-policy/2023/03/more-women-needed-in-the-construction-workforce-hia

[4] https://eige.europa.eu/publications-resources/publications/gender-equality-power-and-decision-making-report?language_content_entity=en