Global Engineering, Design and Construction Gender Diversity Survey

2013

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AECOM sponsored a survey to understand the current diversity trends among selected firms in the global engineering, design and construction industry.

PurposeMercer, a global consulting firm, conducted the survey to understand the current gender diversity among global firms in this industry.

ParticipantsParticipants in this survey cannot be identified for confidentiality reasons. However, they include some of the largest engineering and design firms in the world, with annual revenues ranging from US$1 to $37 billion and number of employees ranging from less than 2,000 to 40,000.

OverviewThe myriad ways in which diversity can benefit a company have been well documented. In recent years, research has shown that greater team diversity overall can drive better average performance, and that greater gender diversity may be correlated with stronger corporate performance.1 However, Mercer’s survey findings indicate that as women progress in their engineering, design or construction careers, fewer of them are represented at the highest levels of corporate leadership. Female representation decreases from entry to mid level as well as from mid to senior level — the latter being where the largest drop-off exists. There is little or no female representation at the board of directors and CEO levels. These findings are consistent across regions.

The majority of companies surveyed indicated that gender diversity is a priority and that it should be evident at all levels of the workforce. Although all survey participants use a variety of diversity practices, such as employee affinity groups, tailored recruiting and retention strategies (see “Ways to enhance diversity” on p. 5), only one-third of companies in this industry provided gender diversity training at the time of the survey.

What we learnedCompanies must examine their diversity practices and ensure that there are metrics to properly gauge their efforts. Mercer’s survey findings also give companies an opportunity to evaluate their promotion and succession strategies to determine:

– What is happening once female entry-level graduates grow to the mid-level position?

– What prevents women in the mid-level positions from achieving senior-level positions and higher?

– How can the industry be made more attractive for women?

Progressive solutions call for an overall shift in how companies manage and develop their workforce. Employees in general — i.e., not just women — are often drawn to intangible benefits such as alternative career paths, enhanced work-life balance and more holistic measures of performance.

As a result, nurturing gender diversity may be less about women adapting to the traditional roles of the corporate world as it is about companies adapting the way they operate, value and manage their people in a modern business world.2

1 Credit Suisse Research Institute, Gender diversity and corporate performance (Zurich: Credit Suisse AG, 2012), 6.

2 Jon Dymond, Stop blaming women: Prescribing a 21st century approach to gender diversity (London: Hay Group, 2013), 2.

Global Engineering, Design and Construction Gender Diversity Survey

2013

On the cover: RMIT University Swanston Academic Building, Melbourne, Australia.

2013 Global Engineering, Design and Construction Gender Diversity Survey

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This chart shows the overall percentage of female employees at each company surveyed, masked for confidentiality.

Survey Results by CompanyEmployee Populations

33.5%

A B C D E F G H I

27.6%

31.7%

16.5%

32.7%

28.0%

32.5%

26.6%

29.5%Average 28.7%

ObservationsThe current outlook for gender diversity within the industry shows that women compose less than one-third of the global employee population on average (28.7 percent). When examining leadership positions specifically, this average falls at the management level and typically decreases further with each subsequent level of management.

2013 Global Engineering, Design and Construction Gender Diversity Survey

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This chart shows the average percentage of women employees by region for each level of management among survey participants.

ObservationsAcross all regions, female representation is highest at the entry level and then lower at each subsequent level for all regions. Companies operating in the Middle East have the fewest women in senior-level management positions, about 1.1 percent. Asia, Australia/New Zealand, Europe and North America have fairly consistent decreases at each stage of management. The largest decrease typically exists between the mid and senior levels.

Gender Diversity Observations by Region and Level

Regional Findings

Entry

Middle

Senior

Asia

19.3% 7.5%31.7%

Australia/New Zealand

22.6%9.2%

29.5%

Europe

22.5% 7.8%27.2%

Latin America

11.6% 13.4%16.1%

Middle East

8.8% 1.1%17.8%

North America

19.2% 11.5%27.5%

Level of management

2013 Global Engineering, Design and Construction Gender Diversity Survey

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Ways to enhance diversityThe following table shows the prevalence of certain diversity practices at the companies surveyed:

On average, global engineering, design and construction companies that participated in this survey engage in 10 of the 16 practices listed. An overwhelming majority (89 percent) of these companies have an internal group or individual who focuses on gender diversity within the organization, but only one-third offer gender diversity training.

Where we go from hereCompanies in the global engineering, design and construction space are trying to change the current landscape of gender diversity in leadership positions. Most of these firms have diversity practices and/or training in place to support more balanced gender representation at all levels of the workforce. However, survey results indicate that women in this industry are still underrepresented in management positions. Female representation decreases from entry level to mid level to senior level, and there is little or no female representation at the board of directors and CEO levels.

Although improving gender diversity starts with internal practices and programs, measurement is also a key element. Monitoring diversity both within organizations and in the industry at large will continue to provide us with data to understand what’s working and what needs to change to achieve a more diverse leadership profile for the engineering, design and construction industry.

The benefits of diversity are clear. Employees are generally drawn to companies that support diversity and whose workforces reflect their own backgrounds. More women continue to enter the labor force — according to UNESCO, the proportion of female tertiary graduates around the world continues to increase, reaching a median of 54 percent in 2010. The shifting demographics create an opportunity for companies to make themselves more attractive to emerging talent. Additionally, a diverse workforce communicates to potential employees that everyone is valued and welcome.

Diversity can also affect financial metrics. A study focused on share price performance, for example, found that companies with more female representation in the highest levels of management outperformed those without it.3 In thinking about the bottom line, also consider the ultimate end-users of the services provided by engineering, design and construction firms. Whether developing a clean water source, building high-speed rail lines or creating mixed-use entertainment venues, people from a variety of backgrounds are affected by these services. The melting pot of consumers illustrates the importance of diversity in perspective, skill and background to make these projects successful. As a result, diversity goes beyond the numbers — for companies in this industry, it enhances what they can offer to the clients and communities that they serve.

88% The organization collects measurements/metrics on diversity-related practices

88%Community outreach is related to diversity (e.g., links between organization and educational institutions, government, etc.)

88%

Employee affinity/resource groups for women (e.g., employee resource networks, which are groups formed around an aspect of diversity)

88%The organization’s employee engagement survey includes items that relate to gender diversity

75% The organization aligns diversity with business goals and objectives

75%

Targeted leadership development opportunities are designed to increase diversity within higher-level positions (e.g., mentoring, coaching, etc.)

75%Diversity awareness is celebrated in the form of different cultural events (e.g., International Women’s Day)

63% Mentoring programs for women exist

63% Programs with a focus on global/regional gender diversity exist in the organization

50% Recruiting strategies are designed to help increase gender diversity

50% Retention strategies are designed to help retain a diverse workforce

50% Leadership development opportunities are specifically tailored for women

50%The organization develops strategies to ensure gender diversity in its suppliers, contractors, etc.

38% There are sponsorship programs for women

3 Credit Suisse Research Institute, Gender diversity and corporate performance, 12.

Table I. Diversity practices of survey participants.