Overview

This CITB snapshot report investigates the relationship between leadership behaviours and employee engagement within construction firms, particularly SMEs. It identifies how leadership style, communication and organisational structures influence business performance, and highlights practical steps employers can take to strengthen engagement and effectiveness.

Key findings

• Business planning often sits too centrally within SMEs, with many CEOs/MDs reluctant to delegate or “let go,” limiting wider participation in decision‑making

• Most SMEs have structures that could support broader staff involvement, and many already use two‑way communication to engage employees in discussions about strategy and business direction

• Views on leadership capability were mixed. While strong leaders are visible on site, some newer leaders lack communication, people management and decision‑making skills, which restricts their impact.

• Shared and distributed leadership models tended to improve performance, helping businesses make better use of staff skills and strengthen engagement across teams.

Next steps

Strengthening leadership and engagement presents a major opportunity for construction firms, particularly SMEs., to improve performance, retention and workforce motivation. Embedding more inclusive planning processes, investing in people‑focused leadership skills and distributing leadership more widely can help businesses unlock the full potential of their teams.

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