The construction industry in the Asia-Pacific (APAC) region is undergoing significant changes as it faces the challenge of attracting and retaining talent with diverse skill sets. As the sector embraces new technologies and evolving demands, it encounters both challenges and exciting opportunities in recruitment.

In a recent episode of Work It with Cheryl Goh, aired on Friday, November 8, 2024, Ethan Tan, Director at Annexion Partners, shared valuable insights on current labor trends, essential future skills, and how businesses can overcome obstacles to hiring top-tier talent. He was joined by Steve Raye, Associate Director at Linesight, a leading expert in the construction market.

The Challenge of Attracting Talent to the Construction Industry

When discussing the challenges of attracting people to the construction sector, Ethan highlighted several key misconceptions that often deter potential candidates. “It has always been challenging to attract great talent into the construction industry for various reasons,” Ethan stated. “There’s competition from other industries, like the tech and finance sectors, as well as the perception of physical labor. There is also a lack of awareness about the variety of roles within the industry beyond manual labor, and a significant skills gap, particularly in specialized areas like quantity surveying. This is compounded by the lack of awareness of such courses available in Singapore."

The construction industry also suffers from image challenges. As Ethan explained, “There’s an image problem, such as the reputation for long hours, safety concerns, and environmental impact. Underlying these perceptions are misconceptions that discourage people from entering the sector. For example, many believe that construction is only for manual laborers, that it’s a declining industry, that the construction world is uncreative, or that it’s male-dominated with limited career progression.”

The Skills Needed for the Future of Construction

While attracting talent remains a key challenge, the skills needed in the industry are rapidly evolving as new technologies and practices take hold. Ethan pointed out that technical proficiency is becoming more critical than ever, particularly with the adoption of cutting-edge technologies. “There’s an increasing emphasis on digital literacy, understanding of construction. So that includes proficiency in software such as BIM, CAD, and project management tools. Familiarity with innovations like drones, 3D printing, and automation is really helpful. Having sustainability knowledge, understanding green building practices, and energy efficiency technologies is key to staying relevant and valuable in the sector.”

With faster project turnarounds and more complex designs, construction professionals must be adaptable and resourceful to meet evolving expectations.

Addressing the Talent Shortage in Construction

One of the industry's most pressing concerns is the ongoing talent shortage. To address this issue, businesses are adopting diverse recruitment strategies.

"For most companies, diversifying recruitment channels is a key and fundamental strategy to attract more talent," Ethan noted. “Social media platforms like TikTok and Instagram are being used to reach the younger demographic.”

Moreover, organizations are focusing on internal referrals and providing career development pathways to retain existing talent while attracting new hires. Progressive companies are reviewing their HR policies to ensure they are competitive with industry standards and are investing heavily in learning and development programs to provide clear career progression for their employees.

Gender Diversity in Construction

The conversation also touched on gender diversity in construction. While the construction industry has traditionally been male-dominated, Ethan has observed a growing push for gender diversity as firms recognize the value of bringing in female talent, particularly in strategic, leadership, and non-physically demanding roles.

“It is still a male-dominated industry, but there are many opportunities for women to join the sector,” Ethan stated. "Interestingly, there has been an increasing number of firms embracing diversity. These organizations are actively looking to bring in female talent, particularly in roles that may not be physically demanding but require the strategic strengths that women can offer to help diversify the workforce.”

Enhancing Recruitment and Talent Development Strategies

For companies in the built environment sector to enhance their recruitment and talent development strategies, Ethan suggested focusing on both tangible and intangible factors. While tangible aspects, such as competitive salaries and working conditions, are crucial, the significance of company culture should not be overlooked.

Ethan further elaborated on this dual focus, highlighting how an emphasis on company culture can complement tangible benefits. Many of the companies we advise are focusing not only on the tangible aspects, such as working conditions, salary benchmarking, and job grading but also on the intangible aspects, like culture-building, which are critical for retention," Ethan said.

Beyond just recruitment, it's evident that retaining talent is equally essential, prompting a shift towards structured professional development. Talent development initiatives are also becoming increasingly important in construction, and businesses are recognizing the need for formal learning and development frameworks to support employees in their careers.

Ultimately, Ethan emphasized the importance of proactive communication about these development opportunities to cultivate a new generation of professionals in the industry.“I think it's also important to raise awareness about the availability of these courses so that we can continue to nurture younger talent and attract them to pursue a career in the built environment sector,” Ethan concluded.

As the APAC construction industry continues to evolve, attracting skilled professionals, embracing diversity, and fostering innovation will be key to shaping its future and ensuring its continued success.

----

Listen to the Full Interview:

For more insights into the skills and labor trends shaping the future of the construction industry in APAC, tune in to the full broadcast of Work It with Cheryl Goh, featuring Ethan Tan from Annexion Partners and Steve Raye from Linesight. Now available on CNA938.

​