Last edited 09 Oct 2018

Human resource management in construction

[edit] Introduction

Human resource management (HRM) is the process of managing people within an organisation. In construction, HRM is primarily concerned with ensuring that a project has sufficient human resources, with the correct skill-sets and experience, for the project to be successfully completed.

HR managers have to be able to identify and document project roles and responsibilities, and develop a plan describing the end-to-end processes that will be required on a project (or series of projects) in order to determine its human resource requirements.

HRM typically involves the following core activities:

Role analysis.
Role specification.
Workforce planning.
Recruitment and selection of temporary and permanent staff as required..
Training and development.
Performance management.
Compensation (remuneration).
Legal issues.
Managing employee payroll, benefits and compensation.
Communicating with employees.
Resolving disputes.
Evaluating performance.
Managing employee relations.
Ensuring equal opportunities.
Making sure staff facilities are suitable and well-maintained.

Some HRM functions can be outsourced to external suppliers, such as those involving payroll functions, background checking, benefits administration, training, the production of employee handbooks, and so on.

[edit] Challenges in construction

The construction industry is one of the most complex sectors within which to manage people:

The operational realities faced by construction organisations, means there is a risk that the needs of employees are subjugated by performance concerns.
There can be insufficient time for strategic planning because of the tendency for construction projects to be awarded at short notice following a competitive tendering bid.
Several organisations may work together on a project, perhaps forming a joint venture or some other form of special purpose vehicle.
There tends to be a transient workforce that may be made up of different contractors and subcontractors. There is an increasing tendency for construction industry organisations to appoint sub-consultants and sub-contractors with skills suitable for particular projects, rather than making internal permanent appointments. This gives greater flexibility but can make training and long-term planning more difficult.
The workforce may work long hours, claim high travel expenses, have different nationalities and working cultures, and so on.
Staff turnover tends to be quite high on construction projects.
Personnel change as projects progress and different skills and experience are required.
There are many health and safety risks which must be managed.
There are a great number of legal requirements that must be satisfied.