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Top 3 reasons why construction companies need to invest in talent

Middle East needs to invest in talent, modernise workforce, enhance soft skills and hone technical capabilities of employees to accelerate industry transformation.

Middle East workforce needs to invest in talent, modernisation, hone soft skills and technical skills of employees

Dramatic changes in the region, such as rapid urbanisation, technological breakthroughs, innovations in science and space exploration, coupled with national transformation programmes, are shaping the region and its aspirations. But realising the national visions of these countries, and solving their key challenges relies a lot on retaining and engaging talent with the right skills.

According to PwC’s 2023 Middle East Economy Watch, countries like Saudi Arabia have already shown remarkable progress in this area, with female participation in the workforce surging to 36%, already far ahead of its 2030 target of 30%. But more still needs to be done.

For over a decade, the PwC Middle East Capital Projects and Infrastructure Survey has gathered the views of those involved in the planning, funding, design and delivery of infrastructure projects across the region. Our latest survey has sought the perspectives of project sponsors, developers, functional/technical experts, contractors, financiers and asset managers from over 100 organisations across the region.

Here, we analyse and present key insights pertaining to talent capability and capacity.

Takeaway #1 – Effective leadership soft skills are in high-demand to accelerate industry transformation.

The GCC is at the epicentre of the megatrends that are shaping the Middle East, and post-pandemic, has entered a new phase of transformation that is massive in scale and fast-moving.

The GCC states are incredibly well placed to successfully implement long-term plans as they have substantial financial resources to work towards their objectives, and a continuity in leadership to see them through. An estimated USD1.6 trillion of infrastructure investment is required in the GCC to support the growing population hosted in new cities, such as the zero-carbon smart city NEOM in Saudi Arabia.

To deliver such visionary projects, there is an immediate need to scale up institutional capacity across all sectors to harness the right talent and capability. With the region’s economic volatility, supply chain disruptions and the wider geo-political turmoil, a major attitudinal shift is required, which often permeates top-down through organisation’s leadership and its vision, and further translates into companies looking at strong leadership in turbulent times.

Our survey shows that leadership is the top soft skill in demand, with 56% of the respondents enlisting it as a priority. In line with this, respondents also emphasise the role of vision and strategic thinking, where 54% believe it will be the highest in demand over the next two years, compared to 43% in the current market.

Our findings reveal buoyancy for senior executive talent in the region, with most respondents mentioning high churn rates every 2-3 years. Further, respondents also emphasise the importance of internal investment in leadership development programmes, tailored specifically to construction industry professionals. Such programs go beyond the typical management-based arrangements, where respondents emphasise that leadership soft skills are set to more performance-based standards.

Another dimension of changing demographics is the constant addition of young talent to the overall population in the GCC, which is reflected in the composition of the workforce comprising more and more members from Generation Y or ‘millennials’, and increasingly, Generation Z. PwC’s 2021 Leaders in Demand report shows that for these employees, leadership goes beyond seniority. Certain value propositions, such as a platform for growth, engagement and development, sometimes outweigh monetary rewards and compensation.

Takeaway #2 – Internal talent matters!

When asked about their approach to sourcing and investing in talent, our respondents cited internal talent as the top source for their organisations to meet the demands of major modern projects.Consequently, there has been significant investment in retaining existing talent and attracting new talent. 46% of our respondents have invested in their people and business to develop and retain internal talent, while 37% want to attract and hire new talent from the market.

However, over one-fifth of the respondents (22%) mentioned that their talent requirement over the next 2 years will increase beyond their capacity to retain or attract talent. This may reflect more competitive market conditions for companies to attract the right talent and will require organisations to build a unique workforce strategy that will ensure they have the right talent in the right jobs.

Companies must rely on innovative recruiting methods, global competencies, and global employer brands and employee value propositions. Organisations may also have to re-think strategies to accelerate and sustain productivity and performance that harnesses individual empowerment and organisation enablement.

The PwC Productivity 2021 and beyond report talks about the need for upskilling the workforce of the future to unlock productivity gains across an organisation’s value chain. Improving the digital IQ of the workforce, along with relevant soft skills, can be a decisive factor in an organisation’s long-term success.

Takeaway #3 – Top technical skills include project management, cost control and financial management.

Project management and cost control skills are currently the most functional skills in demand, while strategy and master planning are expected to claim the top functional skills spot over the next two years.

Most respondents belonged to organisations involved in delivering complex, at-scale projects in an interdisciplinary environment, and are currently in the process of executing/delivering such projects. They emphasised the importance of project management and cost control skills as their top organisational priority – to lead, manage and coordinate projects in complex stakeholder ecosystems.

In recent years, the ‘agile’ approach to general project management has also taken centrestage, with project managers often facing complex tasks on a day-to-day basis. Their management skills are expected to be more holistic, upskilling from just technical to more ‘agile’ project management skills.

Respondents resonated with the importance of master planning and strategy development as key focus areas over the next two years, reflecting the pipeline of upcoming projects early in the development lifecycle, needing these upstream planning skills.

Our survey also cites a significant increase in the demand for financing/investment skills, from 27% to 39% over the next two years. As organisations in the region continue to consider alternative financing routes such as partnership and other alternative delivery models, this demand for professionals who understand capital investments and can think finance more creatively will continue to grow.

Conclusion: Organisations keen to hire and retain high-skill employees

Our findings show that to exploit the growth potential within the Middle East capital projects and infrastructure sector, those operating within it must respond positively to market dynamics. Change means modernisation of the workforce and the updation of technology. It implies digitisation, privatisation of the sources of capital and localisation of skills and capacity.

According to the WEF, 1 billion jobs – a third of all jobs worldwide – will be transformed by technology by 2030. Future employees must be upskilled to stay relevant, with effective leadership and complex problem-solving skills increasingly in demand alongside technical competency.

The PwC CP&I survey has clearly shown that companies in the region are hungry for change, keen for modernisation, and are ready to invest. Faced by the unique challenges brought in by giga projects in the region, organisations are eager to hire and retain high-skill employees who demonstrate leadership, strategic thinking and key functional skills.

This report highlights the three most essential aspects revealed by our respondents – the need to hone effective leadership soft skills, invest in existing talent, and develop the right mix of technical skills focusing on strategy and master planning.

All members of the construction ecosystem in the region – governments, public institutions, and private sector companies (both local and international) – have a stake in the built future. Together, they’re driving social and economic transformation, future-proofing the Middle East as the new hub of global innovation.