Challenges in Attracting and Retaining Workforce in Construction Industry

This paper discusses the challenges faced by HR in attracting and retaining the construction industry workforce due to globalization, salary issues, health and security. It provides recommendations to overcome these challenges and discusses the role of HR personnel in attracting and retaining employees.

Running head: Human resource management

Human resource management
(“Key challenges in attracting and retaining a workforce in construction industry”)
The objective of this paper is to highlight the challenges faced by Human Resource
management in attracting and retaining the construction industry workforce. The paper explains
the various challenges faced by the Human resources department due to globalization, issues
regarding salary and wages, health and security. It is the continuation part of assignment 2 which
provides brief information about the HRM issues. The paper further provides the
recommendations to help overcome the issues and challenges. It discusses what factors impacts
the growth of such issues in any organization within the same industry. It also outlines the role
and significance of the HR Personnel in attracting and retaining employees keeping both the
employee and employer viewpoint in mind.
Construction is one of the growing and leading industries in the world that helps in
generating profitability and outcomes in the competitive market. The sector of national economy
is occupied or engaged in preparation of land and construction alteration and repair of structures,
buildings and other real property. The construction industry plays a major role in the economy
and the activities of the industry are also significant to the attainment of national socio-economic
development goals of rendering shelter, employment and infrastructure. In today’s era, there is
high and intense competition in the global market. Therefore, various recruitment and retention
issues are being entertained by construction industry globally. Some of the key attracting and
retaining issues are described below.
Various studies have been done in order to understand Talent Management easily and
effectively (Pathirage, Amaratunga & Haigh, 2007). Talent Management is a wider term, but
defining in a simple terms would include, anticipating HR needs and Planning in order to meet
them, for the organization.It is analyzed, after a detailed study, that employee attracting and
retention are one of those important functions performed by Human Resource Personnel
(Kramar, Bartram, Cieri, Noe, Gerhart and Wright, 2014). In today’s scenario, the economic
changes happening all over world, has been a major cause for the unemployment of candidates
who wish to perform but lack the skills necessary for the knowledge oriented jobs. Thus,
potential and skills issues are being faced by HRM while attracting or recruiting the candidates at
international level (Madter, Bower & Aritua, 2012).
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Human resource management
Another major issue and an opportunity is Globalisation which allows employees to
rotate within the construction industry (Appelbaum, Roy & Gilliland, 2011). In order to attract
and retain them, HR will have to work upon multiple creative factors for such diverse workforce
which may include, reward and compensation systems, flexibility, Cafeteria, to meet the end
needs of culturally diverse background employees. It has a direct impact on the employee
performance and results they produce. Dries & Pepermans (2012) stated that leadership as being
the biggest and the leading challenge for the human resource management in the construction
industry. Due to poor leadership and various qualities in the management, organizations often
fail to supervise the activities and especially the operations of the workers at the workplace. This
becomes an important factor to be considered when dealing with workforce in construction
industry (Appelbaum, Roy & Gilliland, 2011).
Even in the construction industry, there are employees of all ages, looking at the
demographics of the population, organizations need to devise certain HR policies which are in
line with the primary goals and the entire generation of employees thus, various demographic,
gender, equality and discrimination issues are being handled by the HRM in construction
industry (Posthuma & Campion, 2009).Another reason that retention is difficult in the
construction industry, is long working hours and multiple shifts. In order to attract freshers and
baby boomers, who possess fresh skills, talents and abilities, a lot of efforts and strategies are
needed. The major issue is in retaining them, as organizations are worried that employees leave
job for better pay elsewhere (Kramar, Bartram, Cieri, Noe, Gerhart and Wright, 2014). To retain
these employees, employers will be needed to focus their attention more towards, flexible
working hours, giving them an part time work opportunity, work environment suitable for their
functioning, and work upon their recognition with every project they work upon it. This will give
them an internal motivation to not to go anywhere else (Larsen, 2017).
Muethel, Gehrlein & Hoegl (2012) stated that stereotyping is a major issue that impacts
the employers and employee’s efficiency while being in the construction sector. Cultural and
diversity challenges are need to be dealt by the employers. It has been reported that the top
management and immediate supervisors fail to provide motivation to the employees. Training is
another important factor, in case of lack of understanding of the job role and improper training to
perform the desired role and put off the employee and force them to shift to the competitor
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Human resource management
organization (Kramar, Bartram, Cieri, Noe, Gerhart and Wright, 2014). Therefore, many
organizations are now using internet and technology to provide training to employees to make it
easy to do their jobs safely. Training also improves the efficiency of an employee, decrease
accidents on job and cost (Larsen, 2017).
Along with this, there is no uniformity in performance management system in
construction system, thus top management and managers could fail to judge and analyze the
efficiency and performance of the subordinates at the workplace. It creates ample of differences
at the workplace among the workplace. Thus, employees decide to move or switch the current
for better growth and success. It hampers financial image and goodwill of the construction
industry widely. Maintaining a favorable working environment and culture is major issues in key
attracting and retaining the potential and skilled workforce towards the organization. Culture
helps in attracting and retaining maximum workforce within the organization but due to lack of
strong and unique culture, the firm has to face various issues in today’s competitive world.
It is noted that employees sometimes are unable to understand the working systems of
machinery, and other manual and technological details which are being used by the
organizations. This reduces the productivity and efficiency of the workforce in construction
industry, also may lead to accidents and insecurity. According to Maslow need hierarchy,
security and safety are the prime needs for any employee. these issues need to be resolved
through proper planning and training channels. The working of business in an improper and
ineffective implementation of strategies become another issue and challenge for the Human
Resource personnel in attracting and retaining employees (Sadri & Bowen, 2011).
In the construction industry, with the increasing upcoming projects, there is a need to
appoint skilled candidates and to provide them on the job training. The inability to do so impacts
the hiring for HRM and further impacts the retention. According to Schuler, Jackson & Tarique,
(2011), every employee has certain expectations which are needed to be fulfilled by the HR
department. But sometimes HRM is unable to fulfill these expectations therefore it may hamper
the working of the employees, and will result in their dissatisfaction. Such expectations include,
salaries and wages, Bonus and incentives, Reward and award schemes, etc. Employees may feel
rejected and start performing inefficiently and irresponsibly. It becomes a significant challenge
to attract and retain any further employee. It was identified by Minbaeva, Foss & Snell (2009)
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Human resource management
that most organizations do not provide wages and salaries to the workers on regular basis with
the industry demand therefore it leads to high attraction and retention issues in the workplace.
Organizations face the same degree of challenge for retention as they face attraction and
hiring issues and challenges, to retain, one important criteria is salary and wages being given to
them. These must be at par with the industry trend. Compensation and Reward and award system
is a significant issue while retaining potential and talented employees. In case an organization
fails to provide as per the industry trend, the incentives, bonuses or packages, the employee will
eventually shift to the competitor for better benefits. A number of researchers support the fact
that there is a positive relationship between employer brand and employee attraction and
retention (Gupta & Shaw, 2014).
According to Zanko & Dawson (2012) that health and employee safety Acts and
standards are not being followed by construction industry in today’s modern world. Due to
which even if an HR would hire employees, it will get difficult to retain them. For any candidate,
health and safety comes first than salary and wages. By not following health and safety rules an
organization also impacts its own brand value in the market which eventually affects the hiring
and retaining drastically (Zanko & Dawson, 2012).
The Employees are considered the assets to any company, they help in growth and
enhancing brand value, an employee is the first face that any customer will look at first time to
get various information, they create the impression in the market. Therefore, the Human resource
personnel must keep in mind their responsibilities towards awarding, rewarding, recognizing,
and resolving the issues of the employees and listening to their problems (Patrick Neumann &
Dul, 2010). By retention of employees in any organization, it meant to keep them within the
company, by indulging them in multiple task of their interest. Retention can be an issue and a
challenge for the company as well as it is positive. It is not only the duty of the human resource
management but the entire top management in building a strong brand to help attract and retain
employees (Zanko & Dawson, 2012).
The main challenge employer’s face due to which any employee leaves the organization
is salary and wages. Employees do not find it at par with the industry trend, and they prefer to
switch to the better paying employer. Another issue is maintaining work life balance, an
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Human resource management
employee never prefers working with stress rather prefers to switch to a peaceful environment
(Pilbeam & Corbridge, 2010). Self development is major concern while retaining the workforce
at the workplace. The employees frequently try to seek good opportunities for boosting their
skills, potential and talents for personal satisfaction. Due to lack of money and resources, the
company is further failed to conduct training and development sessions, seminars and programs.
Thus, it also may influence the working capacity and performance of the employees largely.
With more diversification of workforce, challenges or issues related to harassment, bullying and
discrimination etc. may arise at the workplace which can largely affect the productivity of the
employees at the workplace.
From the literature review it is evident that the construction industry has ample amount of
attraction, hiring and retention issues and challenges, the employees also face them during their
employment. There are a number of strategies were also identified through review which can be
implemented by the employers in order to resolve such issues.There must be enough motivation
and encouragement from time to time for the deserving employees and also for the employees
who are giving their 100% performance (Hasle, Bager & Granerud, 2010). To boost their morale
to put more hard work in the construction industry, retention is important at-least till the time a
project reaches its completion. The employees must continuously work towards attracting new
candidates in the competitive market.
Brand is equally important factor in attracting candidates. The brand name and policies
must be regularly checked and the quality of work must be enhanced to improve brand image in
the industry. A good brand can attract and employees are also retained with a good brand name
which has high credibility and reliability in the market. There are many benefits apart from
salary and wages, that an employee seek in order to stay in the existing organization. These
benefits include, health insurance, holiday, week offs, flexible working hours and shift hours,
regular payment schemes, appraisals, accommodation, meals, etc (Banerji, 2013).
Job shifting and rotating are another ways through which employee interest in the
organization is retained, when an employee feels recognized and always productive and busy
with work, it is less likely they get time to switch jobs (Cascio, 2012). No employee would want
to work in a place with no growth opportunity, it is the duty of the employer to work upon
personal growth as well. To overcome the aforementioned issue, the employee can work towards
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Human resource management
providing challenging work and situations (Cascio, 2012). To retain the interest of each
employee, a regular monitoring system should be adopted to keep a check whether they are being
able to manage the challenging work conditions. It is also important to motivate the employees
and to provide them with rewards and recognition from time to time. Often it is noted there is
one central human resource team for the different units situated in other parts or different areas.
The Human resource manager even if he or she is working centrally must constantly visit to
regularly communicate and discuss to resolve issues that arise out of employment (Storey,
Saridakis, Sen‐Gupta, Edwards & Blackburn, 2010).
From the literature review done so far, it has been concluded that construction industry
faces number of issues and challenges during attracting and hiring the skilled and talented
candidates and retaining its employees in the given competition and market scenario.The main
challenge that came across the employers in handling large workforce till completion of a
project, retaining employees and attracting the most competitive workforce is elaborated in the
aforementioned detailed study. The importance of branding and continuous improvement in
brand value to attract employees towards highly credible and reliable brand is a key criteria to be
adopted by any employer in order to hire best in industry employees. The above analysis based
upon the literature review shows how the human resource management personnel have a critical
job in attracting, hiring and retaining the workforce given the challenges and issues in hand. In
recommendations, various suggestions have been proposed to control the issues identified at the
workplace.
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