The global cement sector ranks poorly compared to others in terms of diversity. Why does this matter and what can be done to open up the sector?
It is no secret that the cement industry is lagging behind when it comes to the diversity of its workforce. Data from the UK’s Chartered Institute of Building shows that women make up only 14% of the broader construction sector, with 1 - 2% working in ‘on-site’ roles. The figures are even more concerning for those from a black, Asian, and minority ethnic (BAME) background, with this group accounting for only 5% in the UK construction sector, while representing around a fifth of the UK population. It is highly likely that similar biases exist elsewhere. What do these statistics really mean for the cement industry and... why should you care?
The benefits of diversity
Improved diversity within the industry does not just have positive implications for improving the sector’s appeal to top talent, it’s also a proven means for enhancing productivity and profitability. According to a 2019 McKinsey study, companies in the top quartile for gender diversity on executive teams were 25% more likely to have above-average profitability than companies in the fourth quartile. The figures are even more impressive for ethnic and cultural diversity, with top-quartile companies outperforming those in the fourth by 36% in profitability. It is clear that, as well as it being the morally right thing to do, there is also a strong business case for increasing diversity in the cement sector.
Diversification of the workforce should be front-and-centre of your talent strategy. But how do we implement effective strategies to tackle a problem so deeply rooted in the sector? Here, we discuss four techniques to bolster inclusion and diversity to future-proof your organisation.
Break down the barriers
It’s very easy to fall into the trap of hiring the same type of employee over and over again. On paper, it makes sense to recruit people with the same educational background, skillset, and experience as your current workforce. Why reinvent the wheel, right? But while it might seem like ‘more of the same’ is the best approach to your recruitment strategy, ultimately you end up hiring candidates who lack any diversity of thought and fail to bring fresh ideas to the table. It is important to bring an innovative, ‘outsider mindset’ to your organisation. This can be enhanced by your recruitment process.
If you assess prospective talent solely on traditional performance indicators – years of industry experience, previous company, educational background – you unnecessarily narrow down the search to a group of people from within an already non-diverse industry. There is a high chance you will miss out on a goldmine of talented professionals that could bring unique perspectives in to your company. For certain roles, consider whether a candidate’s critical thinking and diverse approach to a task could be more valuable than the number of years spent working in the industry. Removing these barriers will help to diversify the talent pool, attract a wider range of candidates, and create opportunities to source candidates from outside of the cement industry.
Once you have assessed your external recruitment strategy, take time to review your company’s interview process too and challenge biases all the way. Removing one-on-one interviews in favour of panel interviews can dramatically improve the objectiveness of a recruitment process. This enables colleagues to challenge each other’s potential biases and reduces the risk of interviews descending into friendly conversations about mutual interests or shared experiences. In addition, focus on diversifying your interview panel. If those with hiring authority are all of similar backgrounds, it is highly likely this will bring an unconscious bias to the interview process.
A dramatic example of how removing the opportunity for biases can result in more diverse hiring processes can be found in the recruitment processes used by symphony orchestras. Up until the 1970s, these were dominated by white males to the tune of 75%. In an effort to increase diversity, blind auditions were introduced, with a screen erected between the candidate and the selection panel. After their introduction, the number of women in symphony orchestras rose from 25% to 46%, a telling change.
As a recruitment partner, Beaumont Bailey frequently uses similar techniques with top-level hires in the construction sector. We can remove pictures, names, educational backgrounds, nationalities, genders and ages from résumés, to really boil them down to their core elements. Some processes now even dispense with résumés altogether, instead screening candidates via a series of questions and answers before they are invited for interview.
Modernise and mobilise
As the cement industry returns to pre-pandemic levels of output, now is the perfect opportunity to assess your market position and explore tactics for improving workforce efficiency. The tech boom in recent decades has seen global industries develop, diversify, and reshape. One industry that has been reticent to change, however, is construction. This reluctance to modernise impacts the industry threefold. It:
- Reduces the appeal of the industry;
- Damages productivity;
- Creates a concerning skills gap.
From 1947 to 2010, productivity in construction barely changed at all. However, it increased substantially in broader manufacturing and agriculture – two industries that have embraced technological advancements (McKinsey, 2019). Now is the time for the cement industry to invest in automation and advanced analytics to ensure survival.
Take the time to explore investment in modern practices that could support your logistics and supply chains. As well as boosting productivity, incorporation of new methods and techniques will encourage talent with relevant skillsets to join your organisation, or create the opportunity to upskill your existing workforce.
Take stock of your company values
Diversity cannot flourish without inclusion. The Covid-19 pandemic has brought employee health and wellbeing to the forefront. Businesses are now tasked with developing a ‘new normal,’ one that is more tailored to staff needs and desires than ever before. Global lockdowns have forced a high proportion of businesses to develop remote working policies and flexible working schemes, as employees look to strike a better work-life balance. As industries look to progress out of the pandemic, it’s imperative that your company values are aligned with those of the people you are looking to attract.
Covid-19 has created the opportunity to review your company values and beliefs to ensure you are aligning with the top talent pools. In recent years, it’s become clear that successful recruitment of top talent does not solely rely on job descriptions, compensation packages and bonus schemes, but on development of a mission statement that people can buy into. Take time to review your company stance, engage with existing staff, and understand if you can do more to align with your workforce. Signalling a shift in company values can help attract new domains of expertise and top industry candidates.
Invest in junior talent
With increasing pressures to meet inclusion and diversity (I&D) criteria, it seems like a logical choice that many companies are developing I&D policies and pledges. While this approach is worthy of celebration, a focus on external talent markets neglects a company’s greatest asset: its current workforce. A 2020 McKinsey study found that women and people of colour comprise 64% of entry-level roles, but only 34% of the executive suite. Rather than looking to recruit diverse leadership, instead invest in the development of your existing junior workforce.
As the industry begins to bounce back from the effects of Covid-19, firms are already forecasting a growth in their headcount in the coming year and a likely skills gap that will need addressing. If you want to future-proof your organisation against this, develop diverse succession pipelines that are robust at all levels of the company; source future leaders with the right skills for the challenges of tomorrow; and invest in your junior talent. Allocating time and investment to your graduate, traineeship and apprenticeship schemes is an effective way to source future leaders and improve the attractiveness of the cement sector.
Concluding remarks
It’s important to remember that effective recruitment strategies are only part of the solution here. Increasing diversity across the sector and improving its appeal will require a broader cultural change that starts from the top and filters down to all levels of the sector. It’s imperative that industry leaders are driving positive change and modernising the traditional culture that is rooted within the cement industry. Take time to review whether your company tradition of ‘Friday drinks’ really appeals to and includes all members of your workforce. Explore how your company culture could be more aligned to your existing workforce as well as the type of candidates you’re hoping to recruit. With so much incredible work being delivered across the sector, and with huge advancements in sustainability practices, it’s important that the cement industry does more to promote its fantastic achievements so that it appeals to the best available candidates.