HUMAN

RESOURCE
MANAGEMENT
Prepared by:- GROUP 1
Human Resource Management
challenges in Construction Industry

Recruiting Qualified Workers

Occupational-Safety Health Hazards
Coping with changing labour laws
Immigration Compliance
Variable demand in construction industry
Issues of managing work-life balance in company
Functions from Human Resource to Project
Management
Image of Construction Industry
01
Pre established mindset of various workers regarding construction industry
is perceived as low-paying, stressful and dangerous which hinders the
development of skills of workers. Due to which companies often struggle to
find workers who have the skills, experience, and certifications needed from
EMPLOYEES ARE
project to project.
MOTIVATED BY:

RECRUITING It is essential that HR professionals in the construction industry maintain a

healthy relation with potential employees at all times — even when their

QUALIFIED
company isn't hiring.

Businesses with strong employer brands save time and money on

WORKERS recruitment because candidates are more likely to seek them out. Offering
plenty of training opportunities for workers will help boost employer
branding efforts—and will also enable workers to easily attain any
certifications they need for specific projects.

But finding top talent is only half the battle. You might also have to
compete against a multitude of other construction companies in your area
to win their services. To give organization an edge, make sure to offer
attractive salaries and benefits packages to each worker.
02 Construction is a risky activity and workplace accidents may result in uncalculated costs
for employers. These direct and indirect costs include medical expenses, escalating

Occupational workers’ comp insurance

EMPLOYEES
incurred
ARE
in recruiting
premiums, lost productivity as the injured worker heals, costs
BY: and training substitute workers, and the possibility of lawsuits

Hazards
MOTIVATED
stemming from the incident. Therefore, safety must be a paramount consideration at
any worksite

03 Employers in any industry face laws governing the treatment of workers. In addition to
the safety regulations many construction companies are subjected to comply with these
laws which imposes high costs on employers, but failing to comply will result in

Changing staggering penalties and the risk of lawsuits and other sanctions.

Labor Laws
Many laws are made for fair/unfair dismissals, equality, redundancy, migrant workers,
bondage labors, pensions and insurance etc. for the betterment of workers.

For ex, minimum wages is 6000 per month with standard work day of 8 hours with a
maximum of overtime of 200 hours per year.
04 Construction companies commonly employ workers from other states. In addition with
language and cultural barriers, companies must ensure that they are complying with all
applicable migrant labor laws. Migration law is confusing and subject to change, so

Immigration companies should consider seeking professional assistance to navigate the hiring and
EMPLOYEES ARE
compliance process.

compliance
MOTIVATED BY:
Various HR outsourcing services involved with construction companies can reduce
costs and yield better results on common issues like compliance and employee
recruitment and retention.

05 Cycle in construction demand creates difficulty for the company to have the entire
workforce on its payroll at various stages of project. Also it is difficult to manage labours
if more sites are ongoing simultaneously. Also different type of labours are required for

Variable different activities like shuttering, masonry, concreting, etc

Labor
Consequently, the company has to adopt a flexible model, in which they employ the
bulk of their workforce on as subcontracted labor. The estimation of human resource

Demands
requirement as subcontracted labor is done and the monetary cost is determined. The
demand of manpower may fluctuate throughout the project cycle, thus making the
resourcing function very challenging.
06 Construction companies commonly employ workers from other states. In addition with
language and cultural barriers, companies must ensure that they are complying with all
applicable migrant labor laws. Migration law is confusing and subject to change, so

Work-Life
companies should consider seeking professional assistance to navigate the hiring and
EMPLOYEES ARE
compliance process.

Balance
MOTIVATED BY:
Various HR outsourcing services involved with construction companies can reduce
costs and yield better results on common issues like compliance and employee
recruitment and retention.

07 The project teams are multidisciplinary in nature where different combinations of

Devolution of clients, constructors, contractors, suppliers come together for a specific time frame for
the successful completion of the project. The workforce is also comprised of different

HR Functions
technical skills and education, thus demanding the line manager’s attention to manage
this diversified skill set. As a result the line manager has to manage this multifunctional
task force and has to take the responsibility of HRM function for their project.
Thank You