Smart, connected, socially aware, entrepreneurial, driven and digitally astute – all common terms thrown around to describe Generation Z or those born between 1997 and 2012.
They’re generalisations, of course, but one thing that almost everyone can agree on is that the younger generations’ aptitudes and expectations towards employment and technology will bring change to every industry they enter.
That’s especially true for building and construction. From Boomers to Zoomers, the influx of digitally savvy Millennial and Gen Z workers will have a profound effect on an industry that’s often accused of languishing in the technological doldrums.
Gen Z in numbers
At the year ended June 2022, the construction industry was the third-largest employing industry in the country with 295,300 employees or around 10.5% of the working population, according to figures published by the Ministry for Business, Innovation and Employment (MBIE). The construction workforce was also relatively young – 42% were aged 15–34 compared with 36% across all industries. It was also the industry with the largest number of workers aged 15–24, employing 44,500 or 15% of all construction workers in the year ended March 2022.
This suggests the wave of young, tech-literate workers isn’t on some far horizon – it’s already well and truly here. In fact, MBIE figures also show the number of workers aged 15–24 increased by more than 81% in the decade ending March 2022 as the younger generations matured and began entering the workforce.
A recent BRANZ research report, Technology implementation: What does the future hold for construction?, found that many architectural, engineering and construction organisations are already in the midst of rapid innovation to compensate for many years of falling behind the technology revolution. The driving force for this is the need to work smarter, not harder, while creating a tech-enabled future with enhanced productivity.
It isn’t clear whether this driver is the result of government and industry-backed efforts to make gains in these areas or by increasing numbers of tech-literate generational workers gaining positions of influence within the industry. Perhaps it’s a bit of both.
Regardless, with the rising influence of Gen Z, employment experts say that businesses, including those in building and construction, must be prepared to attract and retain this emerging talent.
Generational change
Each generation is defined by their unique cultural and technological experiences and shaped by the events and social issues of their time. Gen Z stand out from previous generations due to their distinct connection with technology. They were the first generation to grow up immersed in social media, mobile technology and the internet, which has shaped their perspective and given them different expectations for the workforce.
In a work setting, this innate tech know-how is thought to help Gen Zers develop innovative strategies and new methods that can streamline processes and increase efficiency.
According to research by careers website monster.com, 57% of Gen Z believe that technology is essential to being more productive. Furthermore, 39% believe that a smartphone is an essential work tool regardless of the job they’re asked to do. Compare this to an average of 25% across other generations, including Millennials.
Gen Z use such tools to communicate and stay connected around the clock, which they believe enables them to set their own schedules and carve out unique paths towards their own definition of success.
With their always-on mentality comes a preference for remote communication, and they will opt to chat via instant messaging, video conference or social media rather than sit down with co-workers to meet in person.
Gen Zers attribute this to the speed of modern technology and the ability to multi-task, meaning they believe they can solve problems more quickly and collaborate with colleagues more efficiently than they ever could face to face.
But a reliance on technology can have a downside, and there are concerns that Gen Z lack the capacity to effectively communicate and establish meaningful connections with others – especially those outside their generational niche.
In the 2017 book Gen Z @ Work, the authors found that many members of Gen Z feel isolated by their own bias towards digital first. In a study of 4,000 Gen Z participants, 92% voiced concerns about the generational gap that technology is causing in their professional and personal lives. Another 37% feel that technology has weakened their ability to maintain strong interpersonal relationships and develop people skills.
In a 2017 report on Gen Z in the workplace, Deloitte found, ‘Technology has impacted the development of cognitive skills … creating the risk of skill gaps when they enter the workforce en masse. A shortfall in highly cognitive social skills such as problem solving, critical thinking, and communication, could be particularly evident.’
Strategies into the future
So what does this mean for a building and construction industry that’s notoriously resistant to change?
Oddly enough, Gen Z may see a career in construction as an enticing alternative to student debt and what they see as purposeless higher education – a fact that recruitment experts say construction businesses can use to their advantage.
Businesses, they say, need to acknowledge the influence of technology on Gen Z in the workplace and come up with strategies that cater to their tech-focused mindset while addressing the potential downsides. By using technology to foster a flexible and inclusive environment, construction companies can not only attract and retain the best Gen Z talent but help develop it into the industry’s future leaders.