The Pyramid of Employment

Construction Pyramid

In some detail, we look at what the steps are when it comes to the construction industry and staffing. Below we explain the above pyramid and how the construction industry directly boosts our economy in a majorly positive way.

Project announced

The real start of any major project actually starts before this pyramid but from the moment a project is announced, and the tender is released. Whether it’s a massive road, tunnel, desalination plant, commercial office space, hospital, school building program, sporting facility it triggers off an enormous chain reaction that ultimately leads to anything from medium employment opportunity to massive employment opportunities.

Project Development, Planning & Tender

Once a Government Department (State or Federal) are ready to take the project to market, a spark is lit!At a Government level the relevant department needs to prepare project details to the point it can be released for industry comment, public review and ultimately out to tender.In the background consultants of all types are engaged internally and externally to get the project feasibility completed.A non-exhaustive list may include:

  • design/structural/mechanical/environmental engineers,

  • cost consultants,

  • project planners,

  • community liaison,

  • stakeholder managers,

  • and depending on the type of project, investors get ready to spend some money.

Project Tender Phase through to Project award

We have moved from sparks to a very solid fire now.The project is ready for tender, this kicks off the beginning of a very long supply chain.Companies need staff to bid, design, plan and cost the project, all this is before they need staff and suppliers to build it. Companies wanting to deliver the project ramp up their teams to position themselves to design the project and ultimately build the project.Suppliers start ordering and manufacturers start manufacturing, all this and the supply chain has only just begun, and the project has not even been awarded yet.

Social Procurement, Social Recruitment and Social Impact

The next three pieces of the Employment Pyramid are all about jobs, jobs, jobs and more jobs.The social piece of the pyramid sits up high in the order because greater and more varied employment opportunities for a larger and broad section of the community is an extremely positive and wide-reaching part of the process.As the flames get bigger so do the opportunities.Government funded projects target disadvantaged demographics and we work alongside companies who are highly committed to achieving diversity targets on these projects. Together a number of options are provided to help remove the roadblocks to full time employment in a stable industry.

Project Delivery – the Project Workforce

The fire is raging now.On a mega project you might be part of a consortium or joint venture, you have just been notified you’re the preferred bidder to secure a $9B project.At this stage you have your hiring plan completed, you know you need (these numbers are extremely conservative) 240 engineers, 45 admin staff, a team of accountants (add to this external auditing accounting firms that add to the breadth and depth of the employment pyramid), a team of community and stakeholder managers, employment equity team, HR, Recruitment, workforce planners, 5000 – 10 000 trades and labour staff of all types.Again, this list is just scratching the surface.

Supply Chain Workforce

The raging flames are far from over, they just change direction now. It may seem strange that it the supply chain workforce sits at the bottom of the pyramid but allied industries feeding into these projects have a breadth depth that is sometimes forgotten as we are distracted by the actual project. The supply chain at this stage has already kicked off but think of the suppliers – designers, materials (rock, sand, turf, steel and everything else that goes into building something), products that are manufactured or imported (imported is important as is creates the need for sales, marketing, advertising, transport and storage).

All in all, you can see how many people are required to be employed for a major construction project. This effects the communities we live in greatly by not only bringing jobs but also opening opportunities for people to have a stable income, to spend more in the community, to learn, for training opportunities to be provided, to boost the entire system of people helping and working with each other in a community.

Chandler Macleod are proud to be part of this life cycle and to inject positivity back into Australian communities through our staffing business.

For more information about the Pyramid of Employment or our employment services, contact Michael Freis at Michael.freis@chandlermacleod.com or on 0438 579 476.​

Keep reading...

View more