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.

[edit] Find out more

[edit] Related articles on Designing Buildings Wiki

• Appointing consultants.
• Business administration.
• Business process outsourcing (BPO).
• Business rates.
• Construction organisations and strategy.
• Corporate social responsibility in construction.
• Equal opportunities policy.
• Facilities management.
• First aider.
• Health and safety inspector.
• Hourly rate.
• Office manual.
• PAYE.
• Performance management plan.
• Record keeping.
• Relationship management.
• Resource management.
• Site administrator.
• Site induction.
• Site facilities.
• Succession planning
• Tax relief.
• Team management for building design and construction projects.
• Toolbox talk.
• VAT.
• Welfare facilities.