People Leadership in Construction: Research, Leadership Toolkit & Industry Recommendations (2025)
The People Leadership research examines how leadership influences workforce retention, wellbeing, productivity and diversity across New Zealand's construction and infrastructure sector. Based on extensive industry engagement, the report identifies practical leadership strategies and introduces a free People Leadership Toolkit to help businesses strengthen mentoring, wellbeing and leadership capability.
Why this research matters
New Zealand's construction and infrastructure sector continues to face significant workforce challenges.
The research identifies that labour shortages, declining retention, an ageing workforce and increasing wellbeing concerns are placing pressure on businesses across the country.
While technical capability remains essential, the research concludes that leadership capability is becoming equally important. Businesses that develop leaders who communicate well, mentor effectively and prioritise employee wellbeing are better positioned to retain skilled workers and improve organisational performance.
Rather than viewing leadership purely as project management, the research encourages organisations to see leadership as a practical capability that influences every stage of the employee experience—from recruitment through to career progression.
Key Findings
Why is people leadership important in construction?
People leadership directly influences how employees experience their workplace.
Effective leaders help create psychologically safe workplaces where communication is open, mentoring is encouraged, and employees feel supported throughout their careers.
The research found that strong leadership improves:
Employee retention
Workplace wellbeing
Team engagement
Productivity
Safety culture
Knowledge transfer
Succession planning
Workforce resilience
What leadership challenges does the industry face?
Although leadership is highly valued across the sector, many businesses develop leaders informally.
Common challenges identified include:
Supervisors promoted because of technical expertise rather than leadership capability
Limited formal leadership development
Inconsistent mentoring practices
Leadership capability gaps across small and medium-sized businesses
Loss of institutional knowledge as experienced workers retire
Limited diversity within leadership roles
Insufficient culturally responsive leadership development.
Why are businesses struggling to retain staff?
Retention continues to be one of the construction sector's greatest workforce challenges.
The research highlights that many employees leave because they lack:
meaningful support
mentoring
career development
inclusive workplace cultures
confidence in leadership.
Businesses that intentionally develop people leaders create stronger workplace relationships and clearer career pathways, helping employees remain engaged for longer.
How does leadership influence workplace wellbeing?
Leadership plays a significant role in employee wellbeing.
Construction continues to experience high levels of workplace stress and mental health challenges. Leaders who regularly check in with employees, encourage open conversations and model healthy behaviours contribute to safer, more connected workplaces.
The accompanying toolkit introduces practical wellbeing conversations that supervisors can easily incorporate into their daily leadership practice.
Why is mentoring important?
The research identifies mentoring as one of the most effective ways to build leadership capability across the sector.
Structured mentoring helps:
transfer technical knowledge
support apprentices and new employees
prepare future supervisors
strengthen succession planning
improve confidence
build stronger workplace relationships.
The accompanying Mentoring Template provides a practical framework that organisations of all sizes can adapt to their own workplaces.
How can small construction businesses improve leadership?
Many small and medium-sized businesses have limited time and resources for formal leadership programmes.
For this reason, one of the research recommendations is the development of practical, low-cost leadership resources that can be implemented immediately.
The People Leadership Toolkit has been specifically designed with this need in mind, providing simple tools that fit naturally into everyday business operations rather than adding unnecessary administration.
Key Statistics
The People Leadership research highlights the scale of New Zealand's construction and infrastructure workforce challenge, and the role leadership plays in retention, wellbeing and long-term workforce capability.
| Research Finding | Result |
|---|---|
| Construction project pipeline | More than $250 billion |
| Current construction and infrastructure workforce shortfall | More than 100,000 workers |
| Five-year workforce retention rate | Approximately 23% |
| Workforce Development Plans identifying leadership capability as a key issue | 10 of 13 |
| Industry engagement informing the research | 200+ interviews and surveys |
Source: People Leadership: Strategic Insights and Recommendations, ConCOVE Tūhura and Waihanga Ara Rau, November 2025.
What this means for industry
Leadership capability should no longer be viewed as optional professional development.
The research concludes that leadership has become a strategic workforce capability that directly influences retention, productivity, wellbeing and business performance.
Organisations that invest in leadership development are more likely to:
retain skilled employees
strengthen succession planning
improve workplace culture
develop future supervisors
create safer workplaces
improve employee wellbeing
strengthen diversity and inclusion
build long-term organisational capability.
Developing people leaders at every stage of a career—from apprentices through to senior executives—will help create a more resilient construction industry capable of meeting New Zealand's future infrastructure demands.
At a Glance
Leadership directly influences employee retention.
Mentoring accelerates workforce capability.
Wellbeing contributes to safer, more productive workplaces.
Inclusive leadership strengthens workforce diversity.
SMEs need practical leadership resources.
Leadership development should begin early in construction careers.
People leadership supports long-term workforce sustainability.
Practical Resources Included
The People Leadership Toolkit includes practical resources designed for immediate workplace use.
Wellbeing Check-in Guide
A practical framework for supervisors and managers to hold meaningful wellbeing conversations and build psychological safety across their teams.
Mentoring Template
A structured mentoring framework that supports knowledge transfer, career development and succession planning across construction businesses.
Leadership Self-Check Tool
A self-reflection resource that helps leaders evaluate their leadership strengths and identify opportunities for continual improvement.
Frequently Asked Questions
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People leadership focuses on developing, supporting and engaging people rather than simply managing projects or technical tasks. It combines communication, mentoring, emotional intelligence and wellbeing with technical expertise.
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Effective leadership improves retention, wellbeing, productivity, safety, mentoring and workforce capability while helping businesses create stronger workplace cultures.
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The toolkit has been developed for business owners, supervisors, managers, mentors and people leaders working across New Zealand's construction and infrastructure sector, particularly small and medium-sized businesses.
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The toolkit includes a Wellbeing Check-in Guide, Mentoring Template and Leadership Self-Check Tool, all designed to be practical, low-barrier resources that leaders can use immediately.
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Structured mentoring helps employees develop confidence, strengthen workplace relationships, understand career pathways and feel supported throughout their careers, making them more likely to remain within the industry.
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Leaders who regularly check in with employees, encourage open communication and support psychological safety create healthier workplaces where employees are more engaged, productive and likely to stay.
Published: November 2025
Developed by: ConCOVE Tūhura and Waihanga Ara Rau
The research combines evidence from:
• 13 Workforce Development Plans
• More than 200 interviews and industry surveys
• Strategic Reference Groups
• Industry case studies
• Existing workforce and wellbeing research
Together, these insights provide one of the most comprehensive examinations of leadership capability across New Zealand's construction and infrastructure workforce and inform practical recommendations for employers, industry bodies, educators and government.