Rethinking Women in Construction

Managing Volatility

The environmental, social, governance (ESG) focus in construction has exploded in the last two years. A vast part of this is diversity, equity and inclusion (DE&I) – the construction industry has come under fire because of its dismal track record. Women form 18 percent of the construction workforce and equally 18 percent of leadership roles in Australia, but globally it drops to 14 percent, and in the U.S. even lower (11 percent)². The National Association of Women in Construction's (NAWIC) goal is 25 percent women in leadership representation by 2025. The NAWIC is challenging governments – local, state and federal – to follow other jurisdictions in putting "gender on the tender" and requiring the organizations they do business with to have gender equality as a measurable value and goal throughout their organization at every level. If a team doesn't have diversity, it stunts performance, and the numbers don't lie. Diverse companies' cash flows are 2.3 times higher. They are 70 percent more likely to capture new markets than organizations that do not actively recruit and support talent from under-represented groups³. Far from being a benevolent goal, 25by25 makes good business sense: more women = more talent.

Making Diversity Work for Women

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Yet as the most significant disruptor in the 21st century, COVID-19 has also been a catalyst for change – its aftermath now offers a meaningful opportunity for women to bridge the talent gap. If the pandemic has taught us anything, it is that people thrive in different environments, requiring diverse structures and levels of flexibility. Now it is time for practical self-reflection from the industry; how can it support women and grant them the space and encouragement to realize their full potential?

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Construction is one of the many industries where securing qualified talent for open roles, especially on construction sites, is becoming increasingly difficult. In Australia, the market relies heavily on migrant workers and international students, who are a rich source of talent for all careers in construction. "We tend to train these students, and competitors may poach them, but they are in the talent ecosystem. Without that, once again, there's a real supply shortage," says Aon National Director, Authorized Representatives Stacy Finnegan. Construction is a transient industry, and players tend to move around, but most have been reluctant to travel in the last two years. Like many countries, Australia experienced border closures, and workers have been deterred from flying in for seasonal work for fear of being unable to travel home. Melbourne held the world lockdown record last year, where restrictions were in place for 267 days. While other states and regions didn't necessarily lock down for as long, it fostered a global unwillingness to travel, which created a host of issues for construction.

Opening up the Talent Pool

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Coronavirus (COVID-19) has had a devastating impact on talent across industries, and in construction, this has penetrated across the talent lifecycle.

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How can the construction industry break the bias and support women to realize their full potential?

Rethinking Women In Construction

If you would like to discuss any aspects of these insights, or to better understand our capabilities in this area, please do not hesitate to get in contact with our team.

Stacy Finnegan National Director Authorised Representatives - National +61 402 476 988 stacy.finnegan@aon.com

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Construction's talent issue in the U.S. and EMEA is embedded within the broader shift towards a services industry or economy. Current societal norms steer students away from trades and towards four-year college degrees. Historically, industry efforts to combat this stigma were directed towards men, and while there is a growing interest among women to enter the sector, barriers still exist. With more women graduating college than men¹, welcoming women across the sector's talent lifecycle could unlock a significantly larger talent pool and help solve the current shortage and skills gap. "It's an issue the sector needs to focus on to make itself more attractive. A key component of this is inclusivity to women, encompassing all backgrounds and race," says Donais Deetz, Director – EMEA Specialty, Construction, Commercial Risk Solutions.

We tend to train these students, and competitors may poach them, but they are in the talent ecosystem. Without that, once again, there's a real supply shortage".

Stacy Finnegan, National Director Authorised Representatives

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Diversity ties in closely with the sea change construction is currently experiencing. The sector's been slightly behind the curve in terms of modernization, and Donais Deetz says there's a sudden pressure around three areas: modernizing operations with technology and digital processes; sustainability and climate change; and creating a more diverse and inclusive culture, especially in terms of gender and race.

1. https://nces.ed.gov/programs/digest/d20/tables/dt20_318.10.asp?current=yes

2. National Assocation of Women in Construction and US Bureau of Labor

3. https://www.marketwatch.com/story/the-numbers-dont-lie-diverse-workforces-make-companies-more-money-2020-07-

One of the significant issues holding the industry back is pay parity. The charts below were part of a remuneration study "Breaking Down the Gender Pay Gap" conducted by Aon for NAWIC. While region-specific, Australia currently has one of the highest percentage of women in construction globally, and inequality elsewhere could be even higher. Construction in Australia currently has a 26.1 percent gender pay gap, and the charts illustrate that this disparity holds true across performance, tenure and type of work.

Undervaluing Women in Construction

share of global energy storage capacity by use case %

It's Not About Performance

Wendy Ash Account Executive Broker +1 617 457 7681 +1 610 510 4361 wendysue.ash@aon.com

It's Not About Tenure, Or Type Of Work

Donais Deetz Director, EMEA Specialty Construction (+34) 913 405 837 donais.deetz@aon.com

For the construction industry to embrace DE&I, it must accept and challenge its history's preconceptions. Until the Digital Revolution, work, in general, was deemed a physical feat. It undoubtedly involved lifting and building – without the machinery now available. The notion that men were superior, and the workforce was theirs was cemented throughout an extended period of history when physical strength was fundamental. However, events of the 20th century, most notably World War 2, highlighted women's potential and broadened their role in society. Yet this year’s International Women’s Day topic was “break the bias”, and inequality and pay parity still exist today. Stacy Finnegan suggests that this is largely a result of ingrained thinking because most construction processes are no longer physical or based on physical fitness.

Breaking the Bias

Supporting women in construction does not start with talent and leadership; it needs to begin with inspiring children to think about architecture and construction. Inspiring the Future conducted a project with kindergarten pupils in the U.K. where it asked children to draw a pilot, a member of the police force and a surgeon. In total, 61 children drew male figures while only five drew female. According to Inspiring the Future, gender stereotypes are set between the ages of five and seven. "We need to go and speak at schools to change the conversation and talk about career choices," argues Stacy Finnegan. Groups like Young Engineers, which now offers after school activities in over 50 countries, aims to prepare 4-15-year-olds for the changing demands of the 21st-century workforce.

Resetting Stereotypes

The NAWIC offers scholarships and apprenticeships where young women can spend time on sites. Whether interested in architecture or engineering, they can challenge construction norms. NAWIC presents at universities and invites students to networking events where members showcase innovation in construction and architecture. The body also hosts outreach days for children. "It's an opportunity for them to see all the cool things our members build. At the same time, it's also in those experiences when we have the chance to enforce positive gender roles in construction," Stacy Finnegan says. "We have lots of activities where kids can build and, women stand alongside male colleagues, wearing our hats and our neon vests, so they see gender equality in this industry in action."

It Might Just Be About Undervaluing Women

If the construction industry is serious about gender diversity among its workforce, it needs to guarantee a safe and professional working environment with equal opportunity for all, says Wendysue Ash, Broker, Aon Construction Services Group. Diversity may feature highly on organizations' websites, equality plans, and public relations. Yet they need to have efficient and workable systems for reporting misconduct or any behaviour that could be discriminatory towards women. And most importantly, when these instances are reported, firms must take action. How can firms market job opportunities that appeal to women? How does the industry promote opportunity and professional growth in construction? It starts with rethinking the visuals and vocabulary used. Representation matters. "To better attract women to construction, the industry needs to better understand and market to women. Women want to see and hear from other women in the business. They want to understand industry challenges and rewards, and they want to watch successful women drive change and participate in strategic initiatives to improve our infrastructure," Wendysue Ash explains.

Marketing: Representation Matters

There's a lot of lip service right now and attention in the media around women in construction. In terms of effecting real change, whether these intentions translate into tangible, measurable action, this will be the litmus test

Stacy Finnegan, National Director Authorised Representatives

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"We need to get to a place where construction includes smart, sophisticated, articulate women in both field and office positions. We've got to see job opportunities geared toward attributes, traits and qualities that are important to women." Much of this hinges upon the corporate standards and employee benefits on offer. The pandemic has accelerated some of the business strategies around these policies. More clients are putting equality plans in place; they're offering more flexible working and childcare options. "Childcare assistance or flexible working arrangements are really important, as is well-paid time off for maternity leave. Statutory minimum pay during maternity leave varies a lot by country, Europe tends to offer more support, but the U.K. and the U.S. offer little to no financial assistance after the first six weeks. In other sectors, employers will sometimes offer to fill these gaps. However, the construction sector tends only to offer the minimum legal requirements,” says Donais Deetz.

Resetting Stereotypes

Historically, construction has always faced financial performance pressures because margins are tight. The sector is complex, and within larger projects, there are many different stakeholders at play. "It's important to diversify project leaders because when things go wrong on a construction project, tensions rise, sometimes resulting in blame, hostility and lawsuits," says Donais Deetz. As everyone has different leadership styles, having a diverse management board brings diversity of thought, aiding problem-solving and conflict resolution. She adds, "When firms start to diversify not just on gender but also on backgrounds, leadership styles, and conflict mediation tactics, they have a better chance of an improved outcome for all parties involved." Equality in leadership is vital, and Wendysue Ash argues that women should not be treated differently from men. "There should be consistency in the training and development for all qualified candidates, male or female. The same thought processes and tools should be accessible to each qualified candidate. Everyone who fits the demands should be given that opportunity in the same form and fashion," she explains. While women shouldn't be treated differently, as with marketing, it's essential to understand how women think. There needs to be a continued focus on what's important to women, personally and professionally, to ensure women are granted the same opportunities. "I care very much about my career and the opportunities available to me professionally. I love my job, and I love the business. But I’m also a mother and a wife, and my most important role is the one I serve at home. Companies need to acknowledge challenges unique to women and help women to succeed in both personal and professional endeavors. I want to be a leader. I want to be someone who women look up to, but not just women; I want to be a role model to all," Wendysue Ash says. Stacy Finnegan argues that there is a longstanding problem that women don't put themselves forward for promotion. "A lot of smart, astute men will reason: I know 50% of the job. I'll put my hand up. Yet a woman will say: I don't know 100% of it; I'm not ready," she continues. "Leaders need to walk out onto the floor or site, recognize women with potential, and encourage them to apply for roles. Until we have enough women at that position, we probably need to encourage them."

Wendysue Ash suggests that women limit themselves from potential opportunity for fear of failure. "As females, we intuitively say, do you think I can do it? I hope I can do it. Do you think I would be good at it? I think that I would be good at it but I am not sure. Whereas the male perspective is often, of course, I can do it; I'm going to kill it." Firms are busy designing equality and equity plans and making a effort around women in construction. However, most construction companies' boards and executive management in the global top 50 list are still male-dominated. "Sometimes you'll see women on the legal counsel, or marketing, PR or HR, which all tend to stereotypically female roles. It's very rare you see a female as a CEO or CFO, but hopefully this is changing," says Donais Deetz.

Diversity in Leadership

At Acciona’s site, the Sala Cuna facility in Marga Marga Provincial Hospital, Chile, all the workers are women, skilled and specialized in flame-cutting ironwork, maneuvering metal plates, form-setting columns. Since March 2021, 35 women have been raising an annex that will serve as a kindergarten for employees at the hospital. Six meters high and with a surface area of 750m2, Acciona says the building will be the first infrastructure works in the country to be completed with gender policy in mind. On its website, Acciona said: “With this project, Acciona marks a milestone in the construction industry: democratizing female presence in all areas of the industry and putting an end to the age-old stigma, “leave this to the men”. The initiative came from the company’s commitment to tackle labor inequality and give an opportunity to the female population in the area, valuing the role of women in the construction sector and more physical activities where male representation has always been dominant.”⁴

Changing Attitudes in Action

4. https://experience.acciona.com/social/building-built-entirely-women/?_adin=0516116697

"Women’s participation in construction can only improve. We're in a male-dominated industry, but I don't think – poor me, I haven't had opportunities as a woman. I feel the exact opposite. The industry needs talent. It needs strong, independent, thoughtful and strategic thinkers, male or female." Wendysue Ash Equality in construction is a slow-moving process, and hitting 25 percent of women in construction by 2025 is a realistic target. Donais Deetz points out that we are still operating in an environment where the construction industry overlooks qualified women for promotion due to antiquated perceptions and discrimination.

"We may aspire to a 50/50 split between men and women, but the realities need to be taken into consideration because the industry still needs qualified and experienced workers," she adds. As attitudes towards the industry's attractiveness to women evolve, more women will want to enter the sector, and gradually they will gain the skills and experience necessary. The industry must start from the beginning and put in the effort to attract female talent through the entire talent lifecycle to continue to increase the qualified talent pool as we work toward achieving equality in the industry.

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A compa-ratio is a key figure that many HR teams use to make remuneration decisions – it is a simple calculation of where an individual’s pay sits relative to the market rate for their role. Take a site supervisor – let’s say the market rate for this role is 100k. A site supervisor who is paid 90k would have a compa-ratio of 90%, while a site supervisor who is paid 120k would have a compa-ratio of 120%. A compa-ratio above 100% means you are paid above the market rate – below 100% means you are paid lower than the market rate. Essentially, this is a way of measuring a like-for-like pay gap, but in reference to the market rate for the role in question – this means that any statistics based on compa-ratio analysis are taking into account the fact that on average, female-dominated roles tend to paid lower in dollar terms compared to male-dominated roles.

25% women in construction by 2025 is a significant goal, but we need to achieve it to ensure we create an industry where women can fully participate. Having industry partners like Aon helping to lead this change will mean we can turn this ambition into a reality.

Peita de Boer, NAWIC National Advocacy Committee

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