By Mohammadmehdi Yousefi, CIHT Member

As someone deeply involved in the construction industry, I have observed first-hand the challenges we face today. The skills gap is growing, and the urgency to adopt sustainable practices is undeniable. These challenges are particularly pronounced for small and medium-sized enterprises (SMEs), which form the backbone of our industry. Addressing these issues requires a fresh approach that combines workforce development with environmental, social, and governance principles, ultimately paving the way for a more resilient and sustainable future.

SMEs play a crucial role in the construction sector, but they face unique hurdles in adapting to modern practices. The rapid adoption of digital tools and sustainable methodologies has created an urgent need for workers to develop new skills, while also making it difficult to attract fresh talent. Many SMEs, however, operate under tight budgets and lack access to the resources needed for comprehensive training and development programmes.

From my perspective, the skills gap isn’t just a challenge—it’s an opportunity. By embedding environmental, social, and governance principles into their operations, SMEs can foster innovation, enhance employee welfare, and align with the construction industry’s broader sustainability goals. This not only helps businesses stay competitive but also sets them on a path towards long-term success.

I believe environmental, social, and governance principles hold the key to addressing the skills gap while promoting sustainability. Each element contributes to workforce development in unique ways:

• Environmental: training workers in sustainable construction methods, such as energy efficiency, waste management, and renewable energy integration, prepares them for the future of construction while reducing the industry's environmental impact.
• Social: prioritising diversity, inclusion, and employee wellbeing creates a more dynamic and motivated workforce. I’ve seen how fostering an inclusive environment improves employee satisfaction and retention, while also making SMEs more attractive to top talent.
• Governance: strong governance practices, such as ethical standards, accountability, and transparency, build trust among stakeholders and create a culture of responsibility. This ensures that SMEs operate with integrity while meeting regulatory requirements.

Mohammadmehdi Yousefi, CIHT Member

The Importance of measurement

For me, the most practical way to implement environmental, social, and governance principles is through key performance indicators (KPIs). KPIs help measure progress, provide actionable insights, and ensure continuous improvement.

• Environmental KPIs: metrics like waste reduction, energy efficiency, and carbon footprint tracking can identify gaps in knowledge and training needs.
• Social KPIs: indicators such as employee satisfaction scores, retention rates, and diversity ratios offer valuable insights into workplace dynamics and opportunities for improvement.
• Governance KPIs: monitoring compliance with ethical standards and regulatory requirements helps build credibility and stakeholder trust.

Digital tools can enhance the effectiveness of KPIs. I’ve seen how technologies like blockchain improve transparency in reporting, while machine learning enables predictive analysis. These tools not only simplify data collection but also make KPI tracking more accurate and reliable.

The challenges we face as an industry are significant, but I firmly believe they offer an opportunity to innovate and build a more sustainable future. By integrating environmental, social, and governance principles into workforce development, SMEs can turn obstacles into competitive advantages.

For me, the future of construction isn’t just about building structures; it’s about creating a resilient, inclusive, and forward-thinking industry. With a commitment to sustainability and innovation, we can meet today’s challenges and create lasting change for generations to come.

The opinions expressed in this article are those of the author. They do not purport to reflect the opinions or views of CIHT or its members. Neither CIHT nor any person acting on their behalf may be held responsible for the use which may be made of the information contained therein.

Mohammadmehdi Yousefi is currently pursuing a Master’s in Construction Project Management at Birmingham City University (BCU).

Newsletter image: Forth Bridge Queensferry Crossing under construction; credit: Shutterstock.