This report by Leila Khanjaninejad and Sara Wilkinson from the University of Technology Sydney examines the current state of diversity and inclusion (D&I) in the Australian construction industry and outlines the challenges and opportunities for improvement.

The Australian construction industry is one of the most culturally diverse in the country, with over half of its workforce born overseas compared to the national average of 27%. However, despite formal policies and initiatives, achieving comprehensive D&I remains a significant challenge – particularly due to the absence of standardised benchmarks for measuring program effectiveness.

Key benefits of increasing diversity and inclusion:

• Better morale – Employees who feel included demonstrate higher enthusiasm and job satisfaction, supported by D&I training that builds trust and maintains a safe workplace
• Increased productivity – Greater buy-in to company mission and vision results in improved outputs and quality of work
• Higher social consciousness – A sense of belonging fosters enduring commitment more effectively than financial incentives alone
• Positive paradigm shift – Inclusive workplaces encourage authentic discourse and collaboration, reflecting broader societal changes
• Better bottom line – Research shows organisations with happy, healthy staff are more likely to increase revenue and profit

The challenge ahead:

The industry faces ongoing difficulties in attracting and retaining underrepresented groups including women, LGBTQ+ individuals and people with disability. A key barrier is the lack of agreed metrics for assessing D&I program success. UTS researchers are currently developing a framework to establish standardised benchmarks, enabling organisations to evaluate their progress, identify areas for improvement and share best practices across the industry.

Download full report: Built Environment Economist