As the Australian construction industry continues to grapple with a persistent skilled labor shortage, the need for inclusive leadership has never been more critical. Current statistics highlight the significant underrepresentation of women in both trade roles and management positions within the sector.
Research from the Building Commission NSW found that 65% of women in the construction industry felt they needed to work harder than men to receive the same recognition, while the 2020–2021 Workplace Gender Equality Agency’s (WGEA) employer census revealed that the construction industry has the largest gender pay gap in Australia. Women in construction are paid $6.94 for every $10 made by their male counterparts. This is lower than the national average of $7.72 per $10.
Leon Ward, Regional Lead (Australia + New Zealand) at PlanRadar, sits down with Architecture & Design to discuss this pressing issue.
Architecture & Design: What specific strategies should the industry be implementing to address the gender pay gap in the Australian construction industry, and who within the industry has the power to drive this change?
To tackle the gender pay gap in Australia's construction industry, increasing pay transparency has proven highly effective as a catalyst for change. Construction companies should regularly audit salaries, publish gender-based salary data across all levels, and hold leaders accountable for any pay differences. This data-driven method helps pinpoint gaps and encourages targeted action.
The industry must also tackle systemic barriers that have historically limited women's participation and equity. This means rethinking recruitment and retention strategies, promoting diversity and inclusion from the ground up, and ensuring workplace policies like maternity leave, equal access to site facilities, and flexible hours can support career growth.
Human resources, together with senior management, are key to implementing these changes at a company level. Additionally, government bodies, industry associations, and non-profits can offer guidelines and incentives to uphold pay equity standards in the sector.
How can leadership within the construction sector be trained to create a more inclusive work environment?
Leadership in the construction sector can be trained to create a more inclusive work environment through structured, ongoing diversity and inclusion programs. These should focus on unconscious bias, inclusive leadership practices, and strategies for managing diverse teams. Workshops, e-learning modules, and coaching can provide leaders with the tools to recognise and address inequality, fostering a culture where all employees feel valued.
Another practical way to train leaders for inclusivity is by making it a key part of performance metrics. This means linking leadership effectiveness to their ability to foster diverse teams and maintain inclusive practices. By making inclusivity a measurable goal, construction companies can ensure that leadership prioritises creating equitable workplaces.
Considering the current underrepresentation of women in trade roles and management positions, what national-level initiatives are being developed to encourage more women to enter and advance in the construction industry? Are these efforts sufficient?
National initiatives like government-backed grants and apprenticeship programs aim to attract more women to trade roles in the construction industry. For instance, the Australian government's Boosting Apprenticeship Commencements initiative offers financial incentives to employers hiring women in traditionally male-dominated trades. Although these programs are a positive step, they may not be enough on their own.
Industry-driven efforts are also making headway, such as collaborations between construction firms and organisations like NAWIC (National Association of Women in Construction), promoting gender diversity through events, networking, and training for women at all career levels. National regulatory policies are being developed to remove structural barriers and encourage women to enter and remain in construction - including parental leave policies, subsidised childcare, and flexible work arrangements.
While these initiatives are valuable, the current progress suggests more is needed. Genuine change requires stronger leadership commitment and measurable targets for gender diversity, including stricter reporting on gender ratios and pay equity. They must be supported by industry-wide cultural shifts and long-term support like mentorship, workplace flexibility, and leadership pathways. A more robust national framework with enforceable standards is needed to tackle deeper systemic issues. Without stronger enforcement and industry buy-in, these efforts alone may not close the gender gap in trade and management roles.
Can you provide examples of how inclusive leadership has led to tangible improvements in productivity and innovation within the construction sector?
Diverse leadership brings a broader range of perspectives, leading to better decision-making. Research shows diverse teams excel at problem-solving by incorporating varied viewpoints. However, significant gender disparity remains in leadership. Women currently hold just 12% of executive roles in global construction firms, and 21% of Australian construction companies lack female senior management. Less than 23% of firms globally are actively working to improve gender diversity, indicating a significant need for more initiatives at this level.
McKinsey data shows companies with diverse leadership are 15% more likely to outperform competitors financially. As the industry addresses a skilled labor shortage, NAWIC estimates women's participation in construction roles could rise to 30% by 2030 if current trends continue - and advancing women's equality across sectors could add $12 trillion to global GDP by 2025, according to a McKinsey Global Institute report.
Gender-inclusive leadership makes companies more appealing to a wider talent pool, including young professionals and women seeking supportive environments. This diversity can reduce turnover and enhance a company's reputation as a fair and inclusive employer. Diverse leadership teams are also better at identifying and mitigating project risks due to their comprehensive understanding of potential issues, crucial in construction where projects are complex with financial and safety risks.
