When I asked an AI application, “What should the birth rate be for companies?” the answer I received was something like, « Company growth isn’t tracked that way. It has no relevance. »
But what if it does? What if we are trapped in clichés and missing the bigger picture?
I am sure you have never considered the question of what the birth rate should be for companies to grow healthily, nor have you thought about tracking birth rate as a key performance indicator (KPI) in your company. However, it might help us detect warning signs before distress occurs.
In developed countries, a total fertility rate of 2.1—the number of children per woman during her fertile years—is considered the replacement level for population sustainability. A rate below 2.1 signifies population decline. To maintain this, the birth rate, defined as the number of live births per 1,000 people annually (regardless of gender), needs to be between 15-20%, depending on the demographic structure.
The global population, especially in developed countries, is aging. Governments are taking measures to address this; on the other hand, companies are trying to shield themselves from the consequences. For example, when governments extend post-birth maternity leave and grant special permissions during infancy, companies tend to reduce employment of young women. Could these evasive actions be leading companies closer to the outcome they fear?
Before proceeding further, it is important to note that having children is a family matter. Also, male employees in our sector often avoid marriage and parenthood due to challenging work conditions and low income. Thus, we must consider overall conditions, not just those affecting female employees.
Many sector reports highlight that the construction industry’s digitalization and development suffer because younger generations do not prefer the sector, leading to an aging workforce. A McKinsey blog dated August 27, 2024, states:
Our sector is shrinking just when it is most needed.
The Industrial Revolution viewed humans as « resources, » consuming every resource—including people—to focus on growth. Now, like many other resources, we face a shortage of human capital.
To combat talent shortages, construction companies must compete to attract young and female talents not only among themselves, but also against other sectors.
Supporting Family Growth Creates a Thriving Workplace
As global birth rates decline, many organizations recognize the benefits of supporting employees who want to grow their families. By fostering a work environment that encourages family life, companies can realize numerous benefits contributing to individual well-being and long-term business success.
- Sustaining a Dynamic Workforce:
Encouraging higher birth rates among employees ensures a steady flow of future talent. As employees’ children grow, they may choose to pursue careers within the company, enriching talent pools and succession planning. This continuity is especially valuable for businesses with a long-term vision. - Increased Employee Engagement and Loyalty:
Companies offering family-friendly policies—such as parental leave, flexible working hours, and childcare support—show genuine care for employees’ lives beyond work. This support fosters loyalty, boosts job satisfaction, and reduces turnover, preserving valuable knowledge and skills. - Improved Productivity and Participation:
Supporting employees in balancing work and family responsibilities enhances engagement and productivity. A family-focused environment reduces stress, raises morale, and promotes a culture of mutual respect and understanding. - Attracting Top Talent:
In an era when job seekers increasingly value work-life balance, family-supportive companies stand out. Benefits aiding employees in child-rearing provide a competitive advantage in attracting professionals seeking stability and long-term growth. - Broader Social Impact:
Companies that help reverse declining birth rates contribute to sustaining population levels and economic vitality, supporting wider society. This commitment enhances the company’s reputation and reinforces its role as a responsible corporate citizen.
Creating a supportive atmosphere for employees wishing to grow their families is not just a goodwill gesture—it is a strategic advantage. By investing in family-friendly practices and infrastructure, companies enrich employees’ lives and build a more vibrant, resilient future for the organization and the communities it serves.
The birth rate at your company indicates:
- The proportion of young talent in your company and
- Your employees’ trust in your company and its future.
It might also mean your company is becoming a centre of attraction for qualified young professionals. If this indicator is at a balanced level while maintaining gender balance among employees and the number of mothers returning to work post-childbirth is high, congratulations—your company is among the best places to work, ready to capitalize on these outcomes.
Many companies in our sector have existed for over 30 years, if they had addressed this issue earlier, fewer young people would have left the sector and more would have prioritized construction in their job choices.
Still, it is not too late. Let’s start with counting the babies born per 100 employees in your company annually and mulling over the proper birth and turnover rates for your work force.
Demet Demirer,
Chairwoman, CICA Construction 5.0 Working Group
[1] How the construction industry can boost productivity through technology – The McKinsey UK Blog– August 27, 2024
