Human resource in the construction industry
Introduction
The construction industry is one of the most critical sectors in any country. The industry is responsible for spearheading development projects like infrastructural development and housing. Although the importance of the construction industry in the economy is clear, the industry faces many challenges when it comes to managing human resources. From recruiting qualified staff to ensuring fair compensation, the industry faces many human resource challenges that human resource management professionals could help to address. Various human resource management concepts like compensation, motivation, and occupational safety are crucial in ensuring the industry meets its goals of propelling societies to achieve sustainable infrastructural development.
Compensation in the construction industry
As Carpenter-Beck (2017) notes, employees’ compensation is one of the biggest concerns for contractors. Compensation is vital in not only attracting the best target in the industry but also ensuring employees have the right motivation. Carpenter-Beck (2017) further explains that a limited pool of workers exists in the construction industry, and this forces contractors and project managers to rethink pay structures and benefits to attract and retain the staff they need. Human resource management may offer solutions to many of the compensation problems that contractors face.
The role of compensation is to attract, retain, and motivate employees, and companies use different compensation methods to achieve the three goals. For example, a contractor uses a competitive base wage to attract the best talent to a project. While most contractors use an hourly rate to determine the compensation, many factors influence the rate for every employee. According to Feng and Wu (2015), demographic factors and experience are essential in determining the hourly rate. Experience in the construction industry increases with age, and this means that it is common to find older persons earning more than younger persons. Regardless of a person’s age, however, someone with more experience in the industry will most certainly receive higher earnings.
Also, some contractors may find it necessary to use higher rates for new hires. According to Carpenter-Beck (2017), the use of higher or similar rates for new hires is a source of problems because it eliminates wage differentials based on experience. It is a common thing in the construction industry to have a situation where no one earns more than the owner or the contractor. With most owners deciding to pay themselves less than the industry average, the rest of employees will likely hit a wage ceiling (Carpenter-Beck, 2017).
One of the most significant sources of benefits for employees in the construction industry is bonuses. In her study, Carpenter-Beck explains that the construction industry is bonus-paying, and bonuses make up a considerable portion of benefit plans. Bonuses work like short-term incentives, and most workers in the construction industry expect them. They are vital in motivating employees toward achieving specific targets. Contractors use bonuses and other sets of incentives to compensate and encourage employees to work extra shifts or overtime. Among many things, contractors work under strict timelines. As such, the timely completion of a project may require project managers to get employees working overtime to cover up for time wastage that unforeseeable events cause. Working overtime requires contractors to use different sets of incentives beyond monetary ones to get employees to work outside regular working hours.
Using incentives to drive the desired behaviors and results
If construction managers make good use of incentives, they can drive employees to improve their performance. Incentives work by encouraging employees to behave in a certain way, often aimed at enhancing commitment and performance (Gallani, 2017). However, incentives may not function unless managers develop a robust framework for using incentives. One of the essential considerations to make when deciding on the incentives plan is the desired outcome. According to Saunderson (2020), it is vital to understand what it is that the manager wants to achieve with an incentive plan. Making sure that workers understand what the manager expects of them is essential in making incentives effective in achieving desired outcomes.
Incentives must also be incremental and realistic. The effective use of incentives in the construction industry goes beyond just developing an attractive incentive plan. As Saunderson (2020) explains, employees are less likely to participate in an incentive program if they do not believe they have what it takes to benefit from the plan. As such, making sure incentives are effective in promoting desired behaviors requires managers to involve workers in developing the plan. Also, managers should incorporate incremental incentives to capitalize on and encourage incremental performance improvements (Saunderson, 2020). The incentives plan should also take into consideration the different levels within an organization. For instance, top-level managers require different kinds of incentives from casual workers in a construction site.
Making sure that the incentives are visible is also imperative in creating an incentive plan successful. Saunderson (2020) suggests presenting rewards in visual forms, such as the use of badges of honor. The goal of an incentive plan is to encourage employees to improve certain aspects of job performance. Making it visible to all members of the organization, including continually reminding employees of the available benefits, is vital in encouraging all members of the organization to behave in a desired manner.
Unique benefits for construction workers
The construction industry is one of the riskiest when it comes to occupational hazards and accidents (Liao & Chiang, 2015). Construction workers typically work with high-risk equipment and in hazard-prone environments every day. As a result, the construction industry offers managers a unique opportunity to invest in occupational health and safety. More than any other industry, construction workers received advanced packages to cater for occupational health and safety. The industry offers employees healthcare cover for all sorts of occupational accidents. Performance bonuses are also unique to the construction industry. Although other occupations may also utilize bonuses, the construction industry makes bonuses a part of the compensation plan. People working in this industry can be sure to get bonuses for exemplary performance. Flexible or reduced working schedules are also a common thing in the construction industry. Employees can enjoy working flexible schedules, including working in the evenings for some projects.
Construction site safety concerns
Every job has the probability of an accident happening. The construction industry is very risky and its accidents may result in massive losses and injuries (Liao & Chiang, 2015). According to OSHA, over 900 people die while working at construction sites every year. Several safety concerns contribute to these fatalities, and they include falling from heights, electrocution, being struck by heavy objects, among others.
It is almost inevitable for a construction worker to work from a height above the ground, something that puts them at risk of falling. Falling could be due to slipping off a roof or ladder or tripping over a cord. Falls can cause mild to severe injuries, depending on the height from which a person falls and the personal protective equipment used. Falls are the most significant safety hazards in construction sites and contribute to the highest percentage of construction fatalities.
Electrocution is another safety hazard that is common in most construction sites. Most workers use electricity for various purposes. Electrocutions may occur even in instances where the workers do not deal with electricity. For example, exposed wires could cause significant injuries. Also, all workers risk the probability of getting caught between something. Trenches, forklifts, garbage compressors, and other machinery are safety risks. For example, a worker could be caught between a vehicle and a building structure, causing major injuries due to compression.
Most construction objects are heavy, and their impact on people can be injurious and, in the worst-case scenario, fatal. Workers being struck by heavy construction materials happens quite often. Hammers could slide off from a high height and hit someone walking down below. Also, construction sites usually have a buzz of activities, thus workers can get hit by moving objects due to various reasons such as working in poorly lit areas, untidy work stations, and lack of warning lights.
The role of HR in reducing workplace risks
Every employer must ensure that employees work in a safe and healthy environment. It could be through training, offering personal protective clothing, or providing continual improvement in the safety and health of the workplace. The human resource manager acts as a bridge between the employers and the employees and thus can play a critical role in reducing the risks associated with the construction industry.
A very critical role that HR can play comes down to the recruitment process (Wilson, 2018). Setting a company culture that ensures that only the best and the most qualified for a position are recruited comes in handy in reducing occupational hazards. Being careful during the recruitment process assures an organization that the employees know what they are doing, thus preventing accidents. For instance, in the case of the construction industry, a well-trained electrician will be careful to make sure that all electric wires are insulated, preventing electrocution.
It is the HR duty to ensure that all workers at the construction sites have the right personal protective equipment (PPE). To facilitate this, the HR department should collaborate with the facility management to encourage them to invest in equipment such as safety helmet and belts, safety shoes, and hearing eye, and ear protection. PPEs can, for example, reduce the risk of falling due to the use of safety belts and reduce the impact that an accident can have on someone.
Although training of employees on various safety could sometimes be costly, it is essential to do it, as it saves an organization a lot in the long run. HR should make sure that all workers are aware of the hazards that could happen in the workplace and how to prevent or deal with them in the event they occur. The training should, however, not just contain a set of rules but should be engaging, to ensure that the workers have an idea of how to handle an accident in the workplace (Wilson, 2018).
OSHA and significant implications of its regulations
It is OSHA’s responsibility to make sure that everybody works in safe and healthy conditions by not only coming up with and enforcing standards but also offering outreach, training and assistance to various organizations. OSHA has many standards associated with the construction industry. They include, scaffolding, hazard communication, head protection, excavation, , electrical, fall protection, among others (OSHA, n.d.). For example, it has standards for scaffolds. OSHA provides that all scaffolds should be sound and rigid, equipped with guardrails, be accessed through ladders pr stairwells, and not less than 10 feet from electric power rails. It also has standards for fall protection. To prevent fatalities and injuries caused by falls, OSHA expects that all employers will provide body harnesses, use aerial lifts, and cover floor holes (OSHA, n.d.).
By implementing the various health and safety standards, OSHA makes sure that workers in the various construction worksites work in a safe environment. By so doing, accidents become minimal. Also, workers can give their best when they are in a safe environment, improving their productivity. Employers incur fewer medical costs since the number of accidents reduces significantly.
Conclusion
The construction industry is one of the most critical industries in any economy. Responsible for delivering multibillion development projects, the industry is one of the pillars of an economy. Despite its importance, the sector faces many human resource problems. Human resource management concepts like compensation, motivation, and occupational safety are crucial in ensuring the industry meets its goals of propelling societies to achieve sustainable infrastructural development.
References
Carpenter-Beck, D. (2017, October 9). What you need to know about compensation in construction
Feng, Y., & Wu, P. (2015). Risk compensation behaviours in construction workers’ activities. International journal of injury control and safety promotion, 22(1), 40-47.
Gallani, S. (2017). Incentives, peer pressure, and behavior persistence. Available at SSRN 2897572.
Liao, C. W., & Chiang, T. L. (2015). The examination of workers’ compensation for occupational fatalities in the construction industry. Safety science, 72, 363-370.
OSHA. (n.d.). Worker Safety Series – Construction | Occupational Safety and Health Administration. https://www.osha.gov/Publications/OSHA3252/3252.html
Saunderson, R. (2020, March 25). Top 10 Ways to Make Incentives More Effective. Retrieved from https://www.northstarmeetingsgroup.com/Incentive/Strategy/Top-10-Ways-to-Make-Incentives-More-Effective
Wilson, E. (2018). What is the role of HR in safety of employees. https://www.hrzone.com/community/blogs/emily-wilson/what-is-the-role-of-hr-in-safety-of-employees