How Toxic Culture Can Kill Construction Productivity [2025]

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Why construction’s productivity crisis isn’t just about systems and software – it’s about how we treat people

Salim Dalla walked back to the train station after just three months in a new role. He’d left the job. Left behind what could have been a promising position. But something about that departure stuck with him: “I really didn’t feel the best at all. Is it something that I did wrong?”

The answer was no. The culture there was toxic. Communication with customers was great, but when those requirements got translated into the office, the way demands were placed on people, the way things were communicated – it was unhealthy. Salim recognized it, made a decision, and told himself: “I’m really going to try to be the best engineer that I can be into the future.”

Twenty-five years later, after founding SMD Consulting to help construction businesses lift productivity through digital transformation and business process optimization, Salim understands something crucial that most productivity conversations miss. The construction industry’s productivity crisis isn’t just about outdated systems or resistance to technology. It’s about workplace cultures that burn people out, silence their expertise, and force them to choose between doing things right and meeting impossible demands.

When we talk about improving construction productivity, we’re actually talking about creating workplaces where people can thrive, where their knowledge is valued, where communication flows clearly, and where toxic behaviours don’t drive talent away after just three months. Salim’s journey from his father’s building sites to leading digital transformation reveals why culture change must come before – and alongside – any technical improvements we try to implement.

When Toxic Culture Drives Out Talent: The Three-Month Wake-Up Call

The warning signs were there from the start. Communication with customers was handled beautifully. The organization knew how to present well externally, how to make clients feel valued and supported. But when those customer requirements got translated into internal operations, something fundamental shifted. The demands placed on staff were unreasonable. The way things were communicated was harsh. The culture was, in Salim’s words, “quite toxic.”

What makes this particularly relevant to EPIC’s mission is recognizing the patterns that create toxic cultures. It’s rarely one dramatic incident. It’s the accumulation of small daily interactions that signal to people they’re not valued. It’s the gap between how leadership presents the organization externally and how they actually treat their own staff. It’s the assumption that technical delivery matters more than human well-being.

When Salim left after three months, he questioned himself. Had he failed somehow? Was it something he’d done wrong? This is the insidious thing about toxic cultures – they make people doubt themselves even when the problem is systemic. They make talented professionals feel like they’re not good enough when actually the environment is what’s inadequate.

The connection to construction’s broader culture challenges is direct. When women enter construction and encounter hostile environments, they often question whether they belong rather than questioning why the environment is hostile. When migrants face exclusion or disrespect, they may internalize it as their own inadequacy rather than recognizing cultural barriers. When mid-level managers try to advocate for better practices and get shot down repeatedly, they start wondering if they’re the problem.

Construction loses incredible talent when toxic cultures force people out. Women who could bring diverse perspectives and valuable skills. Migrants who could help address the skills shortage while enriching project teams with different approaches. Mid-level managers who could transform how organizations operate if given the support and authority to do so. HR professionals who understand people systems but get overruled by “that’s how we’ve always done it” thinking.

The productivity cost is enormous. Every person who leaves after three months represents a failed investment in recruitment, onboarding, and initial training. Every talented professional who decides construction isn’t worth the toxicity represents lost potential for innovation and improvement. Every time someone questions themselves instead of questioning the culture, we miss an opportunity for organizational learning and change.

The Friday Meeting That Changed Everything: Recognizing Waste

The moment that crystallized Salim’s thinking about construction productivity came during what should have been a routine meeting. Every Friday, the team would gather: a salesperson from each state, a construction supervisor from each state, product managers, and technical team members. About ten people total, going through a list of projects. Where’s this job at? Where’s that job at? When’s this due? When’s that due?

The process was archaic. Completely manual. And utterly inefficient. By the time they finished the meeting, there were comments like “I don’t know where this project’s at. Can you just do a drive-by and have a look?” Construction supervisors were being asked to physically visit sites just to check status, not because there was a technical issue that required their expertise, but because the information systems were so poor that no one actually knew what was happening.

The waste wasn’t just financial. The waste was human. Skilled professionals spending their time chasing information that should have been readily available. Supervisors driving to sites not to solve problems but to answer basic status questions. Meetings consuming hours every week without generating any real value. People working harder and longer without actually improving outcomes.

When Salim introduced a digital platform to create visibility, assign tasks, track status, and enable collaboration, the resistance was immediate and predictable. “We’ve already got all these other systems that we have to update, and now we have to update this new system too?” The complaint was understandable. Adding another system on top of existing ones feels like more work, not less.

This is where change management becomes crucial, and where Salim’s experience reveals something important about construction culture. The resistance wasn’t really about the technology. It was about trust, communication, and understanding the “why” behind the change. When Salim took time to explain why this new system was necessary, what problems it would solve, and how it would actually make their work easier rather than harder, people started coming around.

The results spoke for themselves. Within two to three years of implementing the system, claims from errors in processing, which had previously cost tens of thousands of dollars annually, dropped to zero. Not reduced. Eliminated entirely. The platform created visibility about where things were at, who was responsible, and what needed to happen next. It made collaboration natural instead of difficult.

But here’s what matters most: the productivity improvement came from treating people as collaborators rather than as problems to be managed. The system worked because it enabled people to do their jobs better, not because it micromanaged their behaviour or caught them doing things wrong. The culture shifted from finger-pointing and confusion to collaboration and clarity. And that cultural shift is what actually drove the measurable outcomes.

The Two Bookends of Great Leadership: Accountability and Support

When Salim talks about leading teams successfully, he uses a powerful metaphor: two bookends. On one side, accountability. On the other side, support. Both are essential. Both must be present. And the space between them is where people grow, develop, and achieve things they didn’t know they were capable of.

The accountability bookend means being clear about goals and targets, then expecting people to deliver on them. This isn’t micromanagement. It’s not hovering over people’s shoulders every five seconds, checking their progress. It’s establishing clear expectations at the beginning, making sure everyone understands what success looks like, and then holding people responsible for achieving those outcomes.

The support bookend means being there when people need help, particularly when they’re new in a role or facing challenges they haven’t encountered before. This is where many construction leaders fall short. They’re capable of setting expectations and measuring outcomes, but terrible at providing the scaffolding people need to actually achieve those outcomes. Support isn’t weakness. It’s not coddling. It’s recognizing that growth requires both challenge and safety, both stretch goals and practical assistance.

What Salim discovered through leading diverse teams is that the magic happens when you hold belief in people’s capabilities even when they don’t yet believe in themselves. He describes putting someone forward for a presentation to a major customer – someone who’d never done that kind of work before, who was nervous, who initially said, “I’ve never done this.” His response wasn’t to back off or find someone else. It was to pair them with someone experienced, provide support for developing the content, and express confidence that they could do it.

The result? That initial nervousness transformed into elation after the presentation. The person came out of the meeting thrilled: “That was great! I’ve done that now.” Salim’s response captured the essence of great leadership: “I knew you could do it. It’s just really that self-belief, I think, to make sure that you can push through even the biggest challenges.”

This approach directly addresses several issues EPIC is tackling in construction culture. When women enter construction, they’re often not given opportunities to stretch and grow because of assumptions about what they can or can’t handle. They’re either thrown in completely unsupported (“sink or swim”) or kept from challenging assignments entirely (“protecting” them from difficulty). Neither approach works.

The same applies to migrants navigating language barriers and cultural differences, to mid-level managers trying to implement change without senior leadership backing, to HR professionals attempting to shift cultures without the authority or resources to do so effectively. They all need both clear expectations about what they’re accountable for achieving AND genuine support to develop the capabilities and work through the challenges required to get there.

For construction organizations serious about culture change, this accountability-plus-support model offers a practical framework. Stop choosing between being tough and being soft. Be both. Set high standards and provide genuine support. Challenge people and give them the tools to meet those challenges. Hold them accountable for results while being there to help when they struggle.

If you’re a construction leader, HR professional, or mid-level manager struggling to create this kind of supportive accountability in your organization, EPIC’s leadership coaching and culture change blueprints can help. Contact angela@epicservices.group to discuss how we can support your transformation.

Why Productivity Requires Humanity: Connecting Systems and People

Here’s where Salim’s story intersects most powerfully with EPIC’s mission: the recognition that productivity improvements aren’t technical problems with technical solutions. They’re human problems that require treating people as whole human beings whose expertise, wellbeing, and growth matter as much as the metrics and outcomes.

When the Australian Constructors Association talks about how improving productivity could save billions of dollars annually on project costs, they’re right about the economic opportunity. But too often, productivity conversations focus narrowly on efficiency measures, system implementations, and technical optimizations while ignoring the human factors that actually determine whether those interventions succeed or fail.

Salim’s three streams in his consulting work – engineering and drafting, compliance management, and digital transformation – all recognize this human dimension. Engineering isn’t just about calculations; it’s about creating designs that people can actually build efficiently. Compliance isn’t just about regulations; it’s about helping people understand requirements and implement them practically. Digital transformation isn’t just about software; it’s about changing how people work together and making their jobs easier rather than harder.

The productivity improvements Salim achieved in his teams came from treating people as collaborators with valuable expertise rather than as problems to be managed. When he diagnosed wasteful processes, he didn’t just impose solutions from above. He brought problems to the team and asked, “This is what’s going on. How do we overcome this? What do we need to do?”

This connects directly to construction’s broader culture challenges. When women face sexual harassment or bullying on sites, productivity suffers. Not just for the women directly targeted, but for entire teams who recognize the toxicity and lose trust in leadership. When procurement and contract practices involve corporate bullying – demanding impossible timelines, shifting requirements without adjusting budgets – productivity suffers because contractors build in risk premiums and everyone spends more time protecting themselves than collaborating.

The question Salim asks in his diagnostic process reveals the mindset: “Are there repetitive tasks that can be automated? But once you’ve diagnosed the current state, what does the future look like for that business in terms of sustainable growth?” Notice both elements: eliminating waste through automation AND ensuring sustainable growth over time.

This is where construction needs to shift its thinking. Productivity gains that come from grinding people down – longer hours, more pressure, less support – aren’t sustainable. They generate short-term results at the cost of long-term capability. Productivity gains that come from enabling people to do their best work – clear communication, adequate resources, collaborative problem-solving, inclusive cultures – are sustainable and build organizational capacity over time.

According to research from the Workplace Gender Equality Agency, organizations that address gender equality and create inclusive workplace cultures see measurable productivity improvements alongside better retention and employee engagement. The connection isn’t coincidental – when people feel valued and supported, they contribute more effectively.

Moving Forward: What Construction Organizations Must Do Differently

Salim’s roadmap for leading successful teams provides a practical framework for construction organizations ready to move beyond talking about culture change to actually implementing it. Remember his three key points: set a clear roadmap, establish goals and accountability, and be there to support people through challenges.

Setting a clear roadmap means being explicit about where the organization or project needs to be, what the timelines are, and what success looks like. But critically, it’s not just organizational goals. It’s also asking each person: “In your own personal growth, where do you want to be? What do you want to achieve?” That merging of organizational objectives with individual aspirations creates alignment without coercion.

For organizations serious about gender equality, this means making explicit commitments with timelines and accountability mechanisms. Not vague aspirations like “we value diversity” but specific targets with quarterly tracking. It means asking women currently in the organization what they need to advance and actually providing those resources.

Establishing goals and accountability means getting clear about expectations and measuring progress on the right things. Productivity metrics that only count output without considering turnover, quality, safety, or morale will drive exactly the wrong behaviours. Organizations need balanced scorecards that capture productivity AND the human factors that make productivity sustainable.

Being there to support means providing resources, removing obstacles, and creating space for people to develop. It means recognizing when someone is struggling and asking “What do you need?” rather than assuming they should just work harder. For mid-level managers trying to implement change, this means senior leadership actually backing them with authority and visible support. For HR professionals, it means elevating their expertise to a strategic level. For women facing harassment, it means responding decisively when issues are reported.

Organizations need to examine their current cultures honestly. Where are you more like the toxic environment Salim left after three months, and where are you like the collaborative teams he led successfully? Are you losing talented people who question themselves rather than questioning your culture? Are your productivity initiatives failing because you’re ignoring the human factors that actually determine success?

The change management principles Salim applied to digital transformation work equally well for culture transformation. Start with diagnosis: what’s actually happening now. Be honest about resistance: where is it coming from and what legitimate concerns does it reflect? Communicate the why: help people understand not just what’s changing but why it matters. Provide support during transitions. Measure what matters, including human outcomes.

If your organization is ready to address the culture challenges holding back productivity, EPIC can help. Our culture change blueprints, leadership coaching, and peer support programs provide the frameworks and support you need for sustainable transformation. Contact angela@epicservices.group to start the conversation.

Perseverance With Purpose: Making Culture Change Stick

When asked for his closing wisdom, Salim offered one word: persevere. Don’t give up. Don’t let daily challenges overcome the big picture. There’s so much richness in building things that the difficulties are worth pushing through.

What EPIC understands deeply is that perseverance shouldn’t be required just to survive toxic cultures. Yes, resilience matters. But organizations can’t just celebrate individuals who persevere through terrible environments while doing nothing to improve those environments. That’s not culture change. That’s survivor bias.

The goal isn’t to make construction so hostile that only the toughest people stick around. The goal is to create cultures where diverse people can thrive without having to develop thick skins or work twice as hard just to be treated with basic respect. Where women don’t need extraordinary perseverance to survive inequality. Where migrants don’t need superhuman resilience to overcome exclusion. Where mid-level managers don’t need exceptional determination to implement sensible changes.

Salim’s story offers a blueprint. It shows what’s possible when leaders combine technical expertise with genuine care for people’s development. It demonstrates how productivity improvements require culture change, not as separate initiatives but as integrated efforts. It proves that construction can attract and retain talented people when organizations create environments where they can do their best work while growing as professionals.

Construction’s productivity crisis won’t be solved by software implementations alone, or by process optimizations alone, or by technical innovations alone. It will be solved by creating cultures where people can contribute their full capabilities without battling harassment, inequality, exclusion, or toxicity. Where expertise is valued regardless of gender or background. Where communication flows clearly and honestly. Where leaders provide both challenge and support.

That’s the blueprint for change. The technical elements matter. The systems and processes matter. But they only deliver their full potential when culture enables rather than undermines them. Construction organizations ready to improve productivity need to start with culture, not as an afterthought but as the foundation for everything else they’re trying to achieve.

Ready to transform your construction workplace culture? Whether you’re dealing with harassment, struggling with retention, or simply know your organization can do better, EPIC is here to help. Contact angela@epicservices.group to discuss leadership coaching, peer support, mentoring, or culture change blueprints tailored to your needs.

Frequently Asked Questions

How does toxic workplace culture specifically affect construction productivity?

Toxic cultures reduce productivity through multiple pathways: increased turnover means constant retraining and lost institutional knowledge; harassment and bullying create distraction that reduces focus; unfair treatment leads to disengagement; poor communication creates rework and delays; talented people leaving means organizations lose capabilities they’ve invested in developing. The cumulative cost far exceeds what shows up in traditional productivity metrics.

What’s the connection between gender equality and productivity in construction?

Gender pay gaps signal that women’s contributions are valued less, reducing engagement and retention. Lack of women in leadership means organizations miss diverse perspectives in problem-solving. Sexual harassment creates hostile environments where people spend energy managing interpersonal dynamics rather than focusing on work. Equal opportunity and fair treatment create cultures where everyone can contribute fully.

Why do digital transformation initiatives often fail in construction?

Most failures stem from treating digital transformation as purely technical when it’s actually a culture and change management challenge. Organizations implement software without addressing why this change matters, how it benefits people doing the work, what support will be provided during transition, or how resistance will be addressed. Technical solutions imposed without frontline input often don’t fit how work actually happens, creating workarounds that undermine intended improvements.

What should mid-level managers do when they recognize systemic problems but lack authority to fix them?

Document patterns with specific examples and measurable costs. Build alliances with peers facing similar challenges. Frame solutions in terms senior leadership cares about – productivity, risk reduction, cost savings, talent retention. Request small pilots to demonstrate value. Consider external support like EPIC’s culture change blueprints to provide frameworks and credibility. If the organization consistently blocks reasonable improvements, evaluate whether it’s the right environment for your career growth.

How can HR professionals get their expertise valued in construction organizations?

Connect people systems directly to business outcomes leadership cares about. Instead of talking about “culture” abstractly, quantify turnover costs, calculate productivity losses from poor engagement, demonstrate risk reduction from effective harassment prevention. Use data to show patterns and predict problems. Partner with operational leaders who understand human factors in their teams. Position yourself as solving business problems rather than just managing compliance.

How long does meaningful culture change take in construction organizations?

Meaningful culture change typically takes three to five years to become truly embedded, though visible improvements can happen much faster. Early wins in the first six to twelve months build momentum and demonstrate commitment. But changing deep patterns around how people treat each other, how decisions get made, and what behaviors get rewarded requires sustained effort over multiple years. Organizations that expect quick fixes usually fail because they abandon initiatives before they take root.

What role should senior leadership play in culture change versus delegating to HR?

Senior leadership must own culture change as a strategic priority, not delegate it to HR as an administrative task. Leaders need to model desired behaviors visibly, hold themselves and peers accountable when standards are violated, allocate resources with same seriousness as technical projects, participate personally in training, make culture metrics part of leadership performance evaluation, and communicate consistently about why culture matters. HR provides expertise and coordination, but without senior leadership commitment and accountability, culture change becomes performative exercises that don’t change actual behaviors.