Attracting Skilled Talent

We’re short on people. And we’re running out of time. After more than 50 years in construction, I’ve seen my fair share of ups and downs - but the numbers I’m seeing now are the toughest I can remember. As we move through '25, our industry is facing challenges I wouldn’t have believed possible a decade ago: - The workforce has dropped by over 10% since the pandemic. We’re now at the lowest worker-to-population ratio I’ve ever seen - just 29 construction workers for every 1,000 people. - We need over 250k new workers by 2028, and 50k fresh faces every year just to keep up. - Skilled trades are in crisis: we’re short by at least 225k hands to meet the country’s housing and infrastructure needs. - Material costs? Still all over the place - up 15–20% on average since the pandemic. - And 16% of construction businesses are reporting critical worker shortages -the second-highest in the UK. Here’s something you won’t see in the headlines: A lot of the old knowledge is walking out the door, and not enough is coming in behind it. It’s not that young people aren’t up to the job - far from it. The problem is, we haven’t made construction appealing enough, and we haven’t always taken the time to pass on what we know. Skilled trades aren’t something you pick up in a couple of weeks. They take years, decades, even, to really master. These stats spell out what many of us have been feeling on site for years: More pressure on everyone. Bigger gaps in the workforce. Not enough boots on the ground, or hands on the tools, to do the job the way we know it should be done. Construction’s never been easy. But unless we get serious - about training, mentoring, and making this a career worth sticking with, the problems won’t sort themselves out. Just my take, after half a century watching the cycle repeat. #construction #ukconstruction #skillscrisis #labourshortage #thecommercialmind

It is estimated that 40% of the construction workforce will retire in the next 8 years. And while “the competition for top talent” is a constant topic of conversation at conferences and industry events, I tend to think it’s a bit of a pipe dream. Simply put, it will be impossible for you to replace 40% of your workforce simply by hiring more. There aren’t enough new people trained to do the work. And those that are lack the decades of pattern recognition and knowledge necessary to deal with the thousands of issues that come up during a project. Hiring is necessary, but insufficient. Absolutely hire. As many talented people as you can. But ALSO invest in technology to augment what will very likely be a smaller workforce. Use knowledge management platforms (like Precogs) to get that knowledge out of your team’s heads, before they ride off into the sunset. Use BIM to anticipate build issues and address them, limiting rework and getting your smaller team on more projects in less time. Use digital twins to think through potential ramifications of changes to existing infrastructure, making sure they get it done the right way the first time. The future of the construction industry is going to look different. Teams WILL be smaller. I don’t think it’s an overstatement to suggest construction firms that are first to embrace technology will reduce risk and will be ideally poised for success in a labor-constrained world.

Who Will Build Britain in 10 Years? We're facing a critical challenge in construction — and no, it’s not just rising costs or planning delays. It’s 'people' ! As skilled tradespeople retire, the manual labour force that keeps the industry moving is shrinking fast. Meanwhile, fewer young people are entering the trades — especially in roles like bricklaying, plastering, fencing, groundworks, and general site operations. If this continues, we’re looking at serious capacity issues in just a few years. So how do we fix it? A few thoughts come to mind:- - Rebrand manual labour as essential, skilled, and respected work — not a last resort. - Improve pay and conditions to reflect the value of physical trades. - Look to promote hybrid pathways and combine hands-on training with digital tools and certifications. - Engage early and bring construction into schools with real-world projects and relatable role models. - Rebuild pride in building — remind people that this industry 'literally' shapes the country! We can’t automate our way out of everything. We need hands, skills, and boots on the ground. What’s one thing you think would help protect our manual labour resource pipeline?

Fairness vs growth? The Dutch parliament's decision to phase out the 30% tax ruling for international employees can be a contentious issue, particularly when considering fairness versus economic growth. Some may argue that the 30% tax ruling was inherently unfair to local employees who didn't benefit from such tax advantages. The removal of this ruling could be seen as a step towards a more equitable system for all employees, irrespective of their origin. However, let us look at the potential impact on economic growth, amid the so-called war on talent, which sees countries all over the world competing to find the right talent for their industries. These are not normal times. The 30% tax ruling is an incentive that attracts highly skilled international employees to the Netherlands. These internationals contribute significantly to the country's economy and innovation. Conversations with internationals coming to the high-tech bubble in Brabant/Brainport reveal that their decision was based (also) on the fact that they benefited from the tax exemption. It is very likely that removing this benefit will discourage international talent from coming to the Netherlands, which will eventually hinder economic growth. Is that fair? #labourmarket #expats #taxes

Ireland’s Tax System: A Barrier to Attracting Global Talent? Ireland's tax system, long praised for supporting foreign direct investment (FDI), is now under scrutiny as high personal tax rates are making it difficult for multinationals to attract and retain talent. According to Cróna Clohisey of Chartered Accountants Ireland, the marginal tax rate of 52%—a combination of income tax, PRSI, and USC—is notably high by international standards and is becoming a deterrent for both employers and employees. The Problem: A “Cliff Edge” Tax Structure The current tax system sees individuals move from the 20% standard rate to a 40% higher rate once their income exceeds €42,000. Adding PRSI (4%) and USC (8%) creates a steep jump to a marginal rate of 52%. This structure impacts the “squeezed middle” the most—workers who are neither low-income nor high earners but carry the heaviest tax burden. Comparatively, in the UK, the 40% rate kicks in at £50,271 (€60,363), offering workers a more gradual tax progression and leaving more disposable income in their pockets. This disparity is critical as multinationals compete for highly mobile, young workers in an era of full employment. Challenges for Young Workers and Multinationals High taxes, paired with challenges like soaring housing costs, expensive childcare, and limited infrastructure in cities like Dublin, are prompting young professionals to consider lower-tax jurisdictions. For multinationals, this creates a dual problem: retaining existing employees and enticing new talent to relocate to Ireland. Recommendations for Reform To address these concerns, Chartered Accountants Ireland has proposed several reforms to make the tax system more competitive: Introduce an Intermediate Tax Band: A 30% tax band could smooth the transition between the 20% and 40% rates, reducing the “cliff edge” effect. Raise the Threshold for the Higher Rate: Aligning the entry point for the 40% tax rate with the UK’s €60,363 threshold would leave more disposable income for workers. Broaden Tax Bands Gradually: Introducing additional tax bands, as seen in other European countries, would create a more progressive and less burdensome system. A Broader Perspective: Enhancing Competitiveness Ireland’s inward investment model faces increasing pressure not just from tax competition but also from infrastructural deficits in housing, energy, water, childcare, and public transport. Without addressing these foundational issues, retaining its position as a preferred destination for multinationals will become increasingly challenging. Final Thoughts Ireland’s tax system is at a crossroads. Adjusting personal tax rates to ease the burden on workers and maintain competitiveness. Sources: Cróna Clohisey, Chartered Accountants Ireland John Burns, The Sunday Times (12 November 2024) What are your thoughts on these recommendations? Could tax reform drive a brighter future for Ireland’s economy?

"From Materials to Manpower : The Shifting Risk in Middle East Projects" recent global survey revealed that 79.1% of international real estate markets report skills shortages as new investment flows into construction. For the Middle East, it is a daily operational challenge. our region is highly dependent on migrant workers, yet very few arrive with the specialized training required for complex trades such as electrical, Facade, MEP installation, or finishing. unlike Europe or North America, where vocational pathways and apprenticeships are embedded. the Middle East has very limited structured training centers, forcing contractors to rely heavily on semi-skilled labour. The result is predictable: lower productivity, costly rework, reduced quality, and increased project costs. From a procurement and supply chain perspective, labour is now as fragile as materials, logistics, or equipment. When skilled trades are missing, equipment sits idle, sequencing is disrupted, deliveries pile up, milestones are missed, and contractors face exposure to liquidated damages under FIDIC based contracts. We’ve seen this across in Qatar’s metro projects where shortages of certified MEP trades delayed testing, and in Saudi giga projects where contractors are doubling manpower agency contracts just to keep sites active. The financial risk extends beyond delays: poorly trained workers deliver weak workmanship, creating long term performance issues and higher lifecycle costs for owners. across Saudi Arabia, Qatar, and the UAE, the common constraint is not materials, it is people. traditionally, labour shortages were treated as an HR issue, but today they must be recognized as a strategic supply chain risk. Procurement leaders are uniquely placed to address this by negotiating contractual protections, diversifying labour sourcing, investing in training, and embedding contingency planning. 5 years ago, our biggest challenge was material price volatility. Today, the conversation has shifted. the capability of our workforce defines project risk. If procurement and supply chain leaders do not act, the damages will multiply; if we respond now, we can safeguard delivery, cost certainty, and client trust.

Taxing unrealized gains—levying taxes on the increased value of assets like stocks or property before they’re sold—sounds like a way to tap wealth, but it’s a policy that could cripple innovation and economic growth. Through the lens of Joseph Schumpeter’s theories, which champion entrepreneurs and creative destruction as drivers of capital formation, this approach risks stifling the very dynamism that fuels progress. Here’s why: 1️⃣ Strangling Entrepreneurial Ambition: Entrepreneurs often hold illiquid assets, like startup equity, with value tied to future potential. Taxing unrealized gains forces founders to pay hefty sums on “paper wealth” they can’t access without selling—potentially liquidating stakes in their own ventures. This diverts funds from R&D or scaling, choking Schumpeter’s “new combinations” (innovative products or processes) before they can reshape markets. 2️⃣ Disrupting Creative Destruction: Schumpeter saw capital formation as a dynamic process where resources shift from obsolete to innovative uses. Taxing unrealized gains penalizes holding growth-oriented assets, pushing investors toward safer, less innovative options. This slows the reallocation of capital to disruptive industries—like AI or clean energy—stunting the economic renewal Schumpeter celebrated. 3️⃣ Eroding Credit and Investment: Schumpeter emphasized credit as the lifeblood of entrepreneurial ventures. Taxing unrealized gains drains liquidity from investors and founders, reducing their ability to secure or provide capital. Banks may tighten lending to startups if their backers face unexpected tax burdens, starving the bold ideas that drive capital formation. 4️⃣ Global Consequences: In a connected economy, high-net-worth individuals and startups can relocate to avoid punitive taxes. Taxing unrealized gains risks capital flight, diverting investment from domestic innovation to lower-tax jurisdictions, undermining local economic development. The result? A chilling effect on risk-taking, innovation, and growth. Policies like this don’t just tax wealth—they tax the future. Schumpeter’s vision reminds us that capital formation thrives on freedom to experiment and reap rewards. Let’s not shackle the entrepreneurs driving tomorrow’s breakthroughs. What are your thoughts on balancing tax policy with innovation? Drop a comment below! 👇 #Economics #Innovation #TaxPolicy #Entrepreneurship #Schumpeter #CapitalFormation #australia

🏗️ Labour and Skill Shortage in Construction: Reasons and Remedies The construction industry stands at a critical crossroad. While demand for infrastructure, housing, and industrial facilities is on the rise, project delivery is increasingly being challenged by a persistent issue: labour and skill shortages. As professionals leading project execution, it’s time we take a closer look—not just at why this is happening, but more importantly, at what we can do about it. 🔍 Root Causes 1. Ageing Workforce A large segment of the skilled workforce is nearing retirement. With limited younger entrants, the talent pipeline is thinning out fast. 2. Lack of Formal Training Still rely heavily on informal skill development. Without structured vocational education, consistency in skill quality is hard to maintain. 3. Migration and Urbanisation Trends Labour often migrates unpredictably, affected by economic conditions, seasonal demand, and better prospects elsewhere, disrupting workforce stability. 4. Perception Gap Construction is often viewed as a physically demanding, low-growth industry—especially among youth. The absence of career path clarity makes other sectors more appealing. 5. The Next-Gen Like every parent, workers also want to see their child grow to white coloured profession. Opportunities many 🛠️ Remedies and the Way Forward As project leaders, we can’t afford to treat this as someone else’s problem. Here’s what we can—and should—do: 1. Invest in Skill Development at Ground Level Partner with ITIs, skill councils, and local institutions to build tailored training programs focused on modern construction methods, safety, and technology use. 2. Leverage Technology Embrace BIM, drones, prefabrication, and automation. While tech doesn't replace labour, it reduces dependency on scarce skilled resources and increases productivity. 3. Improve Worksite Conditions Better accommodation, safety standards, and on-site amenities can help retain skilled wokmen. Respect breeds commitment. 4. Build Career Paths, Not Just Jobs Introduce structured upskilling paths, certifications, and recognition. Make workers feel they are growing. 5. Advocate for Policy Support Engage with government bodies for incentives, reforms, and schemes that encourage skill development and labour retention. 👷 Leadership in Delivery Starts with People Every delayed milestone or compromised quality output traces back to human resource challenges. If we want excellence in delivery, we must treat labour and skills as core assets—not just as resources. Let’s shift the narrative: from shortage to strategy, from problem to opportunity. Construction is a serious business - highly demanding both physically & mentally. This certainly needs a structured development plan to cater this sector which is the primarily growth engine for GDP #ConstructionLeadership #ProjectDelivery #SkillDevelopment #LabourShortage #InfrastructureIndia #FutureOfConstruction #PeopleFirst

🔍 A Closer Look at Budget 2025: Unpacking the Impact on Pakistan's Salaried Class** As professionals dedicated to the economic fabric of Pakistan, it's crucial to dissect the implications of the newly announced Budget 2025, especially concerning the salaried class. Despite contributing significantly—nearly 5 times more in taxes compared to sectors like exporting and retailing—the relief provided to our salaried workforce appears minimal and superficial. 📉 **The Reality Behind the "Tax Relief"** This year's budget, while packaged with promises of relief, effectively hands the salaried class a lollipop—sweet at first glance but lacking substantive nutritional value. The adjustments in tax slabs and rates, though portrayed as a boon, do not align proportionately with the increasing cost of living. The question arises: Are we truly supporting our workforce, or is this just a facade? 🧠 **The Looming Threat of Brain Drain** One of the more alarming consequences of inadequate fiscal policies like these is the acceleration of brain drain. Talented professionals are increasingly looking abroad for opportunities where their contributions are met with equitable economic rewards. This not only depletes our national talent pool but also hampers long-term economic growth and innovation. 🌍 **The Need for Equitable Taxation** It's time to advocate for a more equitable tax system where all sectors contribute fairly. The burden should not disproportionately fall on the salaried class, who are the backbone of our economy. By implementing a fair taxation policy, we can retain our best minds and ensure a sustainable economic future. 📢 **Call to Action** As stakeholders in Pakistan's future, let's raise our voices LOUDER for a budget that truly supports the salaried class and reflects our collective aspiration for a prosperous economic landscape. #PakistanEconomy #TaxReform #Budget2025 #SalariedClass #BrainDrain #EconomicPolicy.

"We can't match the big tech companies salaries, so why even try?" If this sounds familiar, you're not alone. 68% of startup founders say competing with established companies is their biggest recruitment hurdle. However, many miss the fact that just 32% of candidates who pick startups over established firms cite compensation as their main reason. Three ways to win against bigger competitors: ✅ Craft a unique EVP that emphasises impact, autonomy, and growth potential ✅ Showcase your mission and purpose, 82% of Gen Z prioritise meaningful work over higher pay ✅ Offer equity incentives that clearly communicate their long-term value. You're not trying to win every candidate, you're trying to win the right candidates who value what you uniquely offer. What's your most effective strategy for competing with bigger companies for talent? #StartupHiring #TalentAcquisition #EmployerBranding