Challenges in Attracting and Retaining Workforce in Construction Industry

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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