Peculiarities of HRM in construction business

Human resource management in the sphere of industry and construction business differs from that applied for white collars working in offices.  This is explained by difference in working conditions, requirements for personnel, personal motivation and specific character of work.  Human resource managers need to understand that construction workers mostly work in the open year, sometimes during heavy rains or wind.  This is a heavy work which not everybody can perform.  It is crucial to create suitable working conditions for builders, otherwise there will be a great turnover of personnel which is not good for any business.

It is important to align human resource objectives with the company strategy so that when builders reach their personal goals they automatically approach company to its strategic objectives.  This is where Balanced Scorecard becomes a great management tool.  One should be aware that management of personnel is a very subtle thing, especially when this concerns people who have tough working conditions and a very hard work.  That’s why it is important to keep balance between interests of the company and requirements of the personnel.

As known, Balanced Scorecard communicates operational in strategic management through measurement of key performance indicators which are chosen individually for every specific business type.  Much depends on the choice of indicators and that’s why this stage is considered to be one of the most important in BSC implementation.  Here are a couple of examples for HR key performance indicators in building/construction field.

  1. Percentage of employees that are in unions.  A Trade Union is a tricky thing.  Some employers consider them to be their worst enemies.  If something happens to the construction worker (injury or even death) a trade union will do everything possible to punish such an employer and making pay as much money as possible.  At the same time, membership in trade unions makes a good reputation and a positive business image for employer.  To this means that employer is socially responsible and its employees are protected.  By keeping track of the number of employees participating in trade unions it will be possible to track attitude of employees to was the company and see what can be done to improve labor relationships.  By the way, the dissipation trade unions and loyal attitude of employer to them, improves employee loyalty towards the company since construction workers will field care and production.  At the same time it is imperative not to let trade union become the boss.
  2. Job satisfaction index.  As already said in the beginning of this article, construction business is not an easy one especially for ordinary builders and workers.  That’s why it is important to have satisfied employees.  This satisfaction implies satisfaction with compensation and bonus system, vacations, working conditions, insurance policies etc.
  3. Traumatism rate. Unfortunately, accidents at construction sites happen more often than in other business areas.  That’s why it is imperative to keep track of this indicator, and keep it as low as possible, otherwise trade unions and social organizations will wipe the company out.

To sum it up, it needs mentioning that human resource management in construction sphere requires understanding of the hard work and the risks involved.