Managing Ageing Workforce in Construction Industry
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This report focuses on managing the issue of ageing workforce in the construction industry. It discusses the impact of workforce ageing, issues faced by the industry, and strategies for managing ageing workforce.
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Running head: PROFESSIONAL PROJECT PROFESSIONAL PROJECT Name of Student Name of University Author’s Note
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1PROFESSIONAL PROJECT Table of Contents Table of Contents.......................................................................................................................1 1.Introduction.........................................................................................................................2 1.1.Research aim and objectives.......................................................................................2 1.2.Research questions......................................................................................................3 2.Literature review.................................................................................................................3 2.1Age discrimination......................................................................................................3 2.2Recruitment and promotion.........................................................................................4 2.3Pay as well as conditions.............................................................................................5 2.4Retirement and redundancy.........................................................................................5 3.Methods..............................................................................................................................6 4.Findings from secondary data analysis...............................................................................7 4.1Data analysis................................................................................................................7 4.2Findings.......................................................................................................................9 5.Discussions of findings.....................................................................................................10 6.Conclusion........................................................................................................................11 6.1.Recommendations.........................................................................................................13 7.References.........................................................................................................................15
2PROFESSIONAL PROJECT 1.Introduction This particular report consists of data regarding how various firms under the sector of construction is managing a specific ageing workforce. A report on this particular topic aims in raising awareness regarding the prohibition of age discrimination in the work or training against the people of any age group (Chileshe, Karuppannan & Trasente 2017). The huge birth cohort between the year of 1946 and 1964 along with the recent recession in economy in the first decade of this century has resulted in increased proportion of older workers in the workplace of US. Such as a particular reversal of the 20thcentury trend of early retirement had been notices as a huge number of staffs have been planning for a long carriers in their work (Smallwood & Emuze, 2017). In case workers keep on delaying the retirement, the concerns of health as well as safety requirements of an elderly workforce would become more important in the upcoming future. There are numerous reasons for which addressing the injuries among various elder workers in the industry of construction, these reasons include thefactthatconstructionindustryisanindustrythatdemandsphysically(Varianou- Mikellidou, Boustras & Dimopoulos, 2019). One more reason is that the illness and injuries faced by workers of this industry are most costly among all the industries. Compared with young workers, elder workers are considered to be at a great risk of injury. This assignment carried out a research on the ageing of workforce in the construction industry. 1.1.Research aim and objectives The main aim of this particular research is to focus on various managing the issue of ageing of workforce in the industry of construction. The main objectives of this particular research includes identification of the issues that are faced due to the ageing of the workforce in the industry of construction, analysis of theimpactoftheworkforceageingintheconstructionindustry,itfutureaimsin
3PROFESSIONAL PROJECT recommending various strategies for the purpose of managing ageing of the workforce in the industry of construction. 1.2.Research questions What are the issues that are faced by the construction industry for employees’ age? How organizations can address the issues? What are the accidents that are faced by employees in construction industry? 2.Literature review 2.1Age discrimination Aaccording toPan (2018), discrimination of age in workplace is a common issue. It affectspeopleofeveryagegroupbutitismorelikelytoinvolvepeoplewhoare comparatively older or over the age of 50. From the studies it has been found that more than one among five workers belonging to the age group of above 50 has experienced it, they have faced it while applying for a specific job or in the present workplace (Pan, 2018). In various countries where laws of age discrimination is already in force, it is the commonest cause for discrimination cases in courts. In this particular topicWindapo (2016), has presented various features of age discrimination which are very common to maximum number of employees (Windapo, 2016). One of the features include indirect discrimination which proves to be more common compared to direct discrimination.Hamid, Muhamad and Zakaria,(2018), has also found various examples of direct discrimination but one among five employees have a belief that few jobs could be done in a better way by people of specific ages. Where this sort of belief would exist, decimation would prove to be a barrier. Discriminatory attitudes are usually found in various sectors that are private in nature especially in small industries of sectors like construction and manufacturing (Hamid, Muhamad & Zakaria,2018). These are
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4PROFESSIONAL PROJECT firms as well as sectors where there are less number of formal procedures as well as policies for protecting against the unfair discriminations. 2.2Recruitment and promotion As per the discussion carried out byWiblen and McDonnell (2018), describes that the key principles for the purpose of employment as well as promotion is the fact that decisions must be fair as well as on the basis of individual’s competence for job, they must not be undertaken on the basis of arbitrary factors such as age of the employees. Besides this, Emuze and Smallwood(2017), presents a research evidence on this topic, this evidence clears the fact that the performance in most of the jobs do not decline with the age of the employees before they are of age 60 considering the fact that employees are motivated, healthy and are kept up to date.Javed, Zhan and Pan (2018), also describes the concept of recruitment in the firms of construction. While recruitment, most of the firms of construction specify the qualifications and the experience that a specific candidate holds. The former factor is legitimate in nature, provided various qualifications match the post for which they are recruiting and hence make allowances for various comparable qualifications for candidates of various ages, the latter is hazardous in nature (Javed, Zhan & Pan, 2018). A very small proportion of micro firms make use of age while carrying out decision in section which would be unlawful in nature. Research carried out byNagarajan, Wada and Fang(2019), presents the fact that around one out of ten construction companies say that some kind of jobs are effectively done by individual who belong to the age group of 25 to 39. Some organizations provide stress on the time that is required for new recruit in becoming completely proficient, some others say that physical strength is vital and it would be important for various employers to note that fact that they are assessing the competence and not the age while undertaking the decisions of recruitment.
5PROFESSIONAL PROJECT 2.3Pay as well as conditions According toQuezada, Bratanova and Boughen(2016), the vital principles for setting up pay as well as conditions must be fairness. Employees must be rated differently on the basis of their contribution as well as skill and not on age or on a specific factor which is replacement for age. This is applicable for the people belonging to every age group and the ones over the normal retirement age of an employer is protected with the help of law. Besides this, as perLoosemore, Lim and Ling(2018), length of various services have comparatively less chances to affect levels of pay in the construction compared to other sectors with less number of firms that report incremental scales of more than six years. Few construction firms claim that ages has some influence on pay and other firms say that it affects the salary at the initial stages, both of these are unlawful in nature. 2.4Retirement and redundancy The age regulations had introduced a specific national retirement age of around 65 for women as well as men. A particular employer of an organization can set a particular retirement age of 65 or even more, but he would be able to set a low retirement age in case there is an objective justification (Frank, 2018). Regardless of the retirement age that has been adopted by the organization, the employer would be required to provide individuals a notice from advance regarding their retirement date. The organization must consider if an employee wants to stay even after retirement. As perCroce, Ricci and Tesauro (2019), various construction firms especially the ones that are large in nature are likely compared to the ones that other sectors allow various employees to work after their retirement age, this is due to their business reasons or to meet various needs of the employees, but this is rarely offered as a formal entitlement. HoweverRahim, Yusoff and Chen(2016), states that various construction firms are comparatively less likely than many more employers for allowing
6PROFESSIONAL PROJECT employees in reducing the working hours for the purpose of caring for elderly departments or in their run towards retirement. 3.Methods This particular research would be carried out with the help of analysing data available in various articles and journals. After the analysis is carried out the data obtained would be represented in this report. This research is focused on the aims and objectives of the research along with the research questions that has been initiated in the previous sections. Referring to various papers, a literature review has been presented (Wong, Chiang and Abidoye 2019). The literature review presents the findings that have been obtained by numerous researchers and authors. It further compares the data that has been obtained from different sources. These findings provide detailed data regarding the issues faced by the construction industry due to the ageing of workforce. The research selects around 30 papers from where data has been extracted (Egdell, Chen and Maclean, 2017). Finding from these papers are derived from the sources and presented in the research, further discussions on the similar concept has also been presented in this research. The research then draws a conclusion on the findings along with mentioning some limitations as well as recommendations on how the ageing at workforce can be managed. The research had been carried out with the help of numerous steps (Eaves, Gyi & Gibb, 2015). Firstly the aims and objectives of the research had been figured out. Secondly various journals and articles had been selected that were relevant to the concept. All the sources were read thoroughly and required data was extracted from them that would help in carrying out this research. A literature review is presented in this paper which represents various studies that has been presented in different papers, the findings of the research had been noted down and has been presented in this assignment (Eaves, Gyi & Gibb, 2016). The findings are derived considering all the sources. A brief discussion has been presented along with the conclusion on the findings.
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7PROFESSIONAL PROJECT 4.Findings from secondary data analysis 4.1Data analysis In the process of data analysis, graphical representation has been carried out for the purpose of understanding the fact that older workers in the construction industry are more vulnerable to accidents from occupational injury as compared to young workers, table provided below represents data regarding it Reason of injury and injury type Affected body partsRelated cost of the injuries Falls, trips and slips (26, 20) Fractures (20) MSD (19-24, 26, 23, 29) Mesothelioma (19) Pneumoconiosis (30) Asbestosis (18) Hearing loss (20) Abrasion/ contusion (19) Neck (25) Black (26,29) Lower extremities (17, 29) Upper extremities (28) Increaseindaysof hospitalization (6, 19) Retirement (10) Disability (25) Loss of work days (15) Increase in monetary cost (5, 20) Limitationoffunctions (6,20) Death (15, 34) Table 1: age and injury of workers in construction workers. (Source: created by author) Accordingtovariousresearcherswhohadcarriedoutprimarydataanalysisand represented data regarding this, they had carried out a survey on around 100 respondents and among them only 39 had responded or answered to the questions, this has contributed only about 39 percent of the findings. The greatest percentage who had responded age
8PROFESSIONAL PROJECT ranged from 21 to 30 years old. The age of respondents from 41 to 20 years had been the minimum. Among this the female respondents were around 56.41 percent and male were around 43.59 percent. 1 2 3 4 5 0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80.00% Chart Title Figure 1: respondents’ age range (Source: created by author) 0102030405060 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 7.69% 23.08% 10.26% 2.56%2.56% 58.85% Chart Title Series 1Column2 Figure 2: employee capacity of respondents
9PROFESSIONAL PROJECT (Source: created by author) The graphical representation of necessity of workspace of addressing the changing population, the graphical representation of this data has been presented in figure 3 Figure 3: necessity of workspace to address the change in population. (Source: created by author) 4.2Findings From the data analysis that has been carried out, it could be stated that the type of employments tenure has been perceived in order to have a direct impact on the experience of workers belonging to the industry of construction (Javed, Pan & Chen, 2018). It has been found that the employees who usually employ their workforce in a direct manner have been
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10PROFESSIONAL PROJECT perceivedas necessity to look after theirelder workers because they find themless demanding in the terms of physical strength when required. They are also forced to provide the workers with a sick pay when a particular worker is not able to work throughout his ill health or any sort of injury (Alessandrini & Winter, 2015). In the case of being self- employees and looking for work with the help of subcontractors, workers are usually perceived to be selected for a job on the factors like fitness and ability to complete a specific job in the given time along with maintaining the quality in their work. Allowances are not introduced for the older workers’ slower pace. In case a self-employed worker is not able to work due to bad health, he or she would not be paid and hence should rely on state benefits or private insurance. Most of the older workers in the UK had reported that they would like to be employed directly (Pak, Kooij & De Lange, 2018). It has also been found from the above discussion that the industry of construction is very competitive. The financial pressure usually results in a very tight margins. There has been a particular percent regarding the fact that small margins make it impossible for the industry to make allowances for workers who are old or physically slow (Gahan, Harbridge & Healy, 2017). This is due to the competitive rendering process, numerous contractors are reluctant in bearing this cost. It has been suggested by numerous participants that one way in which this issue can be resolved include bearing the cost by the client (Ksiazek & Nowak, 2017). In various times of severe downturn of economy as well as industrial restructuring workers more than 45 years are notices to be lessproductiveandhencetheymustexittheworkforceforthepurposeofopening opportunities for the young generation (Jia, Rowlinson & Loosemore, 2017). This trend has occurred in numerous developed countries all over the world. 5.Discussions of findings The data that has been presented above reflect on the pay structure that exists in the constructionindustry.Thisisbecausetheelderemployeesareconsideredtobeless
11PROFESSIONAL PROJECT productive and some organizations feel that they must leave the industry in order provide chance to the young generation (Quezada, Devaraj & McLaughlin, 2018). This directly related to the pay structure of the workers. Most of the construction industry depends on bonus, or a certain work that is undertaken at a specific agreed price. This sort of payment system that provides various rewards in terms of finance for speed, especially appeals to the younger generation, besides the existence of the belief that the work’s quality suffers due to this sort of payment systems (Veen, Teicher & Holland, 2017). Numerous older workers were seen to be reporting that they prefer payment on the basis of day rate, this is because the focus is on quality instead of the concentration of speed. The flexibility of the employees is a serious concern in this case (Wang, Dong & Choi, 2017). Older workers usually want to stay in a particular industry for a long time instead of changing due to minor issues. As they get old, numerous employees tend to work part time on the day rates (Pan, 2018). It has been found that properly planed work arrangements might save the money of an employer and hence increase productivity with the help of allocating various resources in an appropriate way (Rahim, Yusoff & Chen, 2017). The major issues that are faced by the construction industry due to the employment of elder workers include the fact that when people age their bodies undergo certain natural changes, the psychological as well asphysiological changes that are undergone by people include maximum muscular strength, range of joint movement, regulation of balance and posture, sleep regulation, regulation of body temperature, vision, hearing and cognitive as well as mental functioning (Umer, Li & Lu, 2017). These issues are the causes of major barriers that are faced by the construction industry due to the older employees.
12PROFESSIONAL PROJECT 6.Conclusion From the above assignment, it could be stated that along with the construction workforce ageing and numerous baby boomers are moving towards the age of retirement. The industry would require to prepare for impending various skilled workers shortage and the necessity to keep the employees in the workforce for a longer period of time. It has been estimated by various researchers that by the year of 2030, people of around 55 years old and even elder to them would make up around 40 percent of the adult population. Provided the demographic data of the ageing workforce in the construction industry, employees are to be educated regarding the strategies that could be used for the purpose of reducing the potential impact. In case workers keep on delaying the retirement, the concerns of health as well as safety requirements of an elderly workforce would become more important in the upcoming future. It has been found that recruiting as well as training new workers would help the industry in eliminating the issue of less amount of workforce in the industry. Besides these there have been numerous ways by which the issue of workforce ageing in the construction industry could be solved. The data is represented referring from various sources. Age discrimination is considered as a major issue in the industry of construction. There are numerous laws that have been enforced for the purpose of reducing the discrimination of age due to the inability of elder employees to work effectively in various construction sites. Various discriminatory attitudes has been a common issue faced by the construction industry. This particular assignment presents some more issues that are faced by the construction industry due to ageing workforce. Various sources like journals and articles had been considered for presenting the data that has been derived. Recommendations for the purpose of managing the ageing workforce in construction industry would help the filed in considering simple changes in the working environment, these recpmmendatiosn have been presented in the recommendations part. The data obtained from various sources are presented critically in
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13PROFESSIONAL PROJECT this assignment. It further presents the methods that have been used for the purpose of carrying out these research. The findings and results have been presented in this assignment. 6.1.Recommendations Various recommendations for the purpose of managing the ageing workforce in construction industry would help the filed in considering simple changes in the working environment for keeping the ageing workers safe, productive along with healthy (Eaves, Gyi & Gibb, 2015). Various factors that could be considered for dealing with is issue of ageing workforce are as follows Recruiting as well as training various new workers for the industry of construction would help them in eliminating the shortfall, it would be required to enact the retirement as well as pension policy changes that would be designed for the purpose of raising the effective age of the retirement (Pak, Kooij & De Lange, 2018). The ageing workforce would need the employees to be more educated on the concept of disability management along with the needs of their old employees who might lose their ability of retaining this segment of the workers. Employers could encourage the employees for participating in a home or a specific gym based program of exercise. Implementation of onsite as well as supervised program for fitness could help in promoting wellness of workers and hence pay dividends in a form of reducedinjuriesandhencelowerthecompensationcostsofworkers.Aparticular comprehensive program could make use of external health care providers for providing lectures on wellness topics like nutrition, disease prevention and weight control. Some other topics might focus on various conditions that are related to age like arthritis. Innovation of hiring proper training as well as workplace evaluation along with a comprehensive disability management program are various important tools which would help in keeping employees of all the ages healthy safe as well as productive. Employers should
14PROFESSIONAL PROJECT address issues of a specific ageing workforce now in order to meet challenges that would be faced in future. Various technologies or machines could be used so that the ageing workforce do not have to make use of physical strength for numerous site works.
15PROFESSIONAL PROJECT 7.References Alessandrini, M., & Winter, R. (2015). Systemic Gender Barriers in the Building and ConstructionIndustry:Co-PreneursasManagers.InContemporaryGlobal Perspectives on Gender Economics(pp. 83-100). IGI Global. Chileshe, N., Karuppannan, S., Trasente, T., & Sivam, A. (2017). The impact of an ageing workforceontheconstructionindustryinAustralia.InValuingPeoplein Construction(pp. 78-97). Routledge. Croce, G., Ricci, A., & Tesauro, G. (2019). Pensions reforms, workforce ageing and firm- provided welfare.Applied Economics Eaves, S. J., Gyi, D. E., & Gibb, A. G. (2015). Facilitating healthy ageing in construction: stakeholder views.Procedia Manufacturing,3, 4681-4688. Eaves, S., Gyi, D. E., & Gibb, A. G. (2016). Building healthy construction workers: Their views on health, wellbeing and better workplace design.Applied ergonomics,54, 10- 18. Egdell, V., Chen, T., Maclean, G., & Raeside, R. (2017). The Ageing Workforce and Employers in Fife. Emuze, F., & Smallwood, J. (Eds.). (2017).Valuing people in construction. Routledge. Frank, D. (2018). How one supply chain integrator resolved one investor owned utility’s ageing workforce challenges using a scalable solution.Journal of Supply Chain Management, Logistics and Procurement,1(2), 159-171. Gahan, P., Harbridge, R., Healy, J., & Williams, R. (2017). The Ageing Workforce: Policy Dilemmas and Choices.Australian Journal of Public Administration,76(4), 511-523.
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16PROFESSIONAL PROJECT Hamid, A. R. A., Muhamad, N., Zakaria, R., Aminuddin, E., Alwee, A. A., & Tok, A. (2018, July).ThechallengesoftheageingpopulationontheMalaysianconstruction industry. InJournal of Physics: Conference Series(Vol. 1049, No. 1, p. 012034). IOP Publishing. Javed, A. A., Pan, W., Chen, L., & Zhan, W. (2018). A systemic exploration of drivers for and constraints on construction productivity enhancement.Built Environment Project and Asset Management,8(3), 239-252. Javed, A. A., Zhan, W., & Pan, W. (2018). A System Dynamics Framework of Drivers and Constraints to Enhancing Productivity of the Hong Kong Construction Industry. InProceedings of the 21st International Symposium on Advancement of Construction Management and Real Estate(pp. 117-127). Springer, Singapore. Jia, A. Y., Rowlinson, S., Loosemore, M., Xu, M., Li, B., & Gibb, A. (2017). Institutions and institutional logics in construction safety management: the case of climatic heat stress.Construction management and economics,35(6), 338-367. Ksiazek, M., & Nowak, P. (2017). Diversity management aspects in construction.Acta Scientiarum Polonorum. Architectura,16(2). Loosemore, M., Lim, B. T. H., Ling, F. Y. Y., & Zeng, H. Y. (2018). A comparison of corporate social responsibility practices in the Singapore, Australia and New Zealand construction industries.Journal of Cleaner Production,190, 149-159. Nagarajan, N. R., Wada, M., Fang, M. L., & Sixsmith, A. (2019). Defining organizational contributions to sustaining an ageing workforce: a bibliometric review.European Journal of Ageing, 1-25.
17PROFESSIONAL PROJECT Pak, K., Kooij, D. T., De Lange, A. H., & Van Veldhoven, M. J. (2018). Human Resource Management and the ability, motivation and opportunity to continue working: A review of quantitative studies.Human Resource Management Review. Pan, W. (2018). Enhancing Construction Productivity and Quality Through Innovation. InAISA Quality Management Symposium. Pan, W. (2018). Rethinking construction productivity theory and practice.Built environment project and asset management,8(3), 234-238. Quezada, G., Bratanova, A., Boughen, N., & Hajkowicz, S. (2016). Farsight for construction: Exploratory scenarios for Queensland’s construction industry to 2036. Quezada, G., Devaraj, D., McLaughlin, J., & Hanson, R. (2018). Asbestos Safety Futures Managing risks and embracing opportunities for Australia’s asbestos legacy in the digital age. Rahim, F. A. M., Yusoff, N. S. M., Chen, W., Zainon, N., Yusoff, S., & Deraman, R. (2016). The challenge of labour shortage for sustainable construction.Planning Malaysia Journal,14(5). Smallwood, J., & Emuze, F. (2017). The impact of an ageing workforce on the construction industry in Australia AL PA NASI VA M, TONY TRASENTE, SADASI VA M KARUP PA NNAN. InValuing People in Construction(pp. 104-123). Routledge. Umer, W., Li, H., Lu, W., Szeto, G. P. Y., & Wong, A. Y. (2018). Development of a tool to monitorstaticbalanceofconstructionworkersforproactivefallsafety management.Automation in Construction,94, 438-448.
18PROFESSIONAL PROJECT Varianou-Mikellidou, C., Boustras, G., Dimopoulos, C., Wybo, J. L., Guldenmund, F. W., Nicolaidou, O., & Anyfantis, I. (2019). Occupational health and safety management in the context of an ageing workforce.Safety Science,116, 231-244. Veen, A., Teicher, J., & Holland, P. (2017). Continuity or disruption? An assessment of changing work and employment in the Victorian construction industry.Labour & Industry: a journal of the social and economic relations of work,27(3), 193-212. Wang, X., Dong, X. S., Choi, S. D., & Dement, J. (2017). Work-related musculoskeletal disorders among construction workers in the United States from 1992 to 2014.Occup Environ Med,74(5), 374-380. Wiblen, S., & McDonnell, A. (2018). Macro Talent Management in Australia: Balancing IndustrialRelations,IsolationandGlobalCompetitiveness.InMacroTalent Management(pp. 206-222). Routledge. Windapo, A. O. (2016). Skilled labour supply in the South African construction industry: The nexus between certification, quality of work output and shortages.SA Journal of Human Resource Management,14(1), 1-8. Wong, F. K. W., Chiang, Y. H., Abidoye, F. A., & Liang, S. (2019). Interrelation between HumanFactor–RelatedAccidentsandWorkPatternsinConstruction Industry.Journal of Construction Engineering and Management,145(5), 04019021.