The construction industry in the UK appears as a sector of contrast, especially in relation to boardroom diversity.
- While the industry excels in social mobility, with many successful individuals lacking a university degree, it lags significantly in ethnic and gender diversity.
- Encouraging strides have been made towards gender parity among apprentices and graduates, yet boardrooms remain predominantly male.
- Despite a target set by the Rebuild Project for women to secure 30% of executive roles by 2025, progress continues slowly.
- Ethnic diversity is notably lacking, with just over 4% of board members from minority backgrounds, far below the national average.
Data on the social backgrounds of employees in UK companies is scarce, however, it is evident that the construction industry is an exemplar of social mobility. This sector champions class meritocracy, creating wealth for many who have not pursued higher education. Yet, despite these successes, the diversity within boardrooms tells a different story.
The industry’s record on gender and ethnic diversity remains less impressive. The dominance of white males in boardrooms is starkly apparent. While sexism and racism could partly explain this scenario, they may not be the sole reasons behind such homogeneity in leadership.
A number of construction firms are proactively addressing workforce diversity, implementing a variety of programmes to balance gender representation. Certain organisations now manage to achieve a near equal gender split at entry-level positions, which indicates some degree of progress.
In 2021, as part of the Rebuild Project, an objective was set to ensure women comprised 30% of executive board positions by the year 2025. Current findings reveal a 28% female presence, highlighting progress albeit slower than desired. As of now, only one firm has an entirely male board.
Regarding racial diversity, the figures are more concerning with a mere 4% of board members from Black, Asian, and Minority Ethnic backgrounds. This is in sharp contrast to the FTSE100 average of 19%, which aligns more closely with the UK’s overall population diversity, indicating a crucial area for improvement.
The construction industry must accelerate efforts to enhance its board diversity, especially in terms of ethnic representation, to tap into a wider talent pool and address skill shortages.
