Question:
Discuss about the Strategic Policy Solution to Demographic.
Recruitment is defined as “the set of activities and processes used to legally obtain a sufficient number of qualified people at the right place and time so that the people and the three organization can select each other in their own best short and long-term interests” (Bratton & Gold, 2012). The Australian construction sector is continuously faced with an insufficient operational workforce that is skilled (AWPA, 2013). According to the 2015 statistics, The Australian construction industry employs 1,055,200 staff which represents 9.1% of the total employment and the third largest employing industry in Australia. Additionally, the job industry has increased by 221,400 that is by 26.6 % within a ten year period up to February 2015. This ranks the construction sector as the Australians’ third largest growth sector. The need for housing due to the rising population alongside the extra addition both public and private infrastructure has significantly contributed to the growth (Marketing & Public Relations Office, 2012). Holmegaard, Madsen, & Ulriksen, (2014) found out that there was a negative attitude in public towards the construction industry. Similar thoughts were shared by the cross advisory panel of the building sector (Treasury, 2011). Some of the causes of the negative image of the construction industry include the absence of gender diversity, low pay, job insecurity (Sang & Powell, 2012). Also, the study by Loosemore (2014) showed that poor health safety records and the perception by the public which consider workers in the sector to be dirty and stressful. Irrespective of some findings and campaigns, no significant change has been initiated to change the negative perceptions.
This report will look at the influencing factors that negatively affect the recruitment exercise in the NSW construction industry and suggest recommendations on how the sector can adapt, initiate and implement to provide a sustainable labor pool and experience a long-term effect in the construction industry.
A critical review focusing on the existing research was carried out on the topic to assess the current situation and exploit it for primary research using data from preceding research. The recruitment challenges that have been explored include labor supply-demand, demographic factors, and image of the construction industry.
According to Horta et al. (2013), the construction sector is continuously growing, and it represents the gross domestic products of the world by 11 percent, such a growth implies the availability of job opportunities in the construction organizations but also the unique challenge of shortage of skilled workers and qualified managers. The entries of new construction projects possess the challenges of finding sufficient employees to undertake the projects (Marketing & Public Relations Office, 2012). This can also be attributed to the 2008 economic recession in Australia which made most qualified professionals leave the industry but never came back (Ball, 2014). With a minimal number of workers coming to the construction sector after the recession Zuo et al. (2015), few experienced people are available who can lead the organizations. This is also influenced by the older folks retiring from the sector and the reduced interests by the younger ones to venture into the industry. This can lead to poor productivity as a result of the leadership of in-experienced project leadership (Midtsundstad, 2011).
Various researchers reveal that labor shortages in the construction sector are becoming widespread across all nations after the 2008 recession which forced the majority of the workforce to join other professions (Kikwasi, 2013; Jarkas, & Bitar, 2011 & Ghoddousi, & Hosseini, 2012). This affects recruitment and retention because of the current workforce more so the young do not consider the construction jobs as an option after high school completion.
In the construction industry, just like any other sector, the workforce is the greatest resource for the companies. The operations in the building industry are dependent upon the knowledge and skills of the people initiating and implementing the work. Recruiting enough number of skilled and expert professionals is proving a difficult exercise in the construction industry. The first contributing factor to such a scenario is the perception towards the industry as the least desirable one to work in Holmegaard, Madsen, & Ulriksen, (2014). Surveys done on the young people reveal that most of them have the construction industry as the least they could wish to work in. Naturally, construction work is a risky, dirty and burdensome task. The advancement in technology and the related industries have also attracted most of the youth from the traditional industries. A prevailing attitude exists which assumes that no successful attempt can be made to make the construction job less strenuous physically and that the job is intrinsically hard. Even among the construction employees, there is a belief that injury and working under pain are part of the construction work. Thus a construction work has to work even when injured leading a high level of stress irrespective of age (Rahman et al., 2015). Therefore, finding and recruiting employees in the construction industry are difficult due to the pre-existing attitude.
Discrimination against the aging workers is also another recruitment challenge affecting the industry. A South Australian study showed that most of the senior workers were substantially discriminated regarding the training opportunities and the laxity in the implementation of the measures against age-based discrimination (Mariappanadar, 2013). Organizations invest in their employees with the expectation of quality service in return and therefore in the case of older employees whose retirement age is fast approaching are considered unproductive after retirement, and thus no career development opportunities are offered to them even though some may wish to work past retirement. This is a recruitment challenge because the organization can no longer experience the services of the older workers including those that are willing to work past the retirement age (Perera et al., 2015). Furthermore, this implies that the construction industry is losing a significant teaching resource that the recruitment team would have used to train the incoming workforce that is inexperienced (Walker & Maltby, 2012).
According to the study by Guest, (2011), the Australian construction sector is made up of older people compared to the young. This is a positive issue on one side and negative on the other. The existence of the older employee is a source of proven experience and training for the incoming young and in-experienced workforce. However, the shift in the current nature of the construction work has become hostile to the older folks. For instance, the dependence on the pre-assembled supplies like wall frames and stairs is proving a challenge to the recruitment team whether to hire the young inexperienced or the old experienced but in the old construction designs.
In the construction industry, meeting the deadlines is very critical to the site managers and the construction company. It is perceived that older workers are slower compared to the younger ones in keeping up with the pace. Furthermore, it is viewed that the aging workforce is resistant to change and more often adopt unsuitable safety actions (Williams et al., 2011).
Australia is one of the leading countries with a diverse workforce in the construction industry ranging from gender, culture, and ethnicity (Barak, 2016). The Australian construction site is composed of a variation in the ethnicity and culture (Loosemore et al., 2011). According to the findings of Loosemore et al., 2011, most of the large construction sites in Australia are segregated into occupational groups based on their ethnicity and culture which excludes the outsiders by culture and language. These posses a recruitment challenge to the site managers in that they have to hire workers based on these lines because some groups are considered as problematic by others, and thus high levels of intolerance are exercised towards them by those who knew other languages except English. For instance, there exists a general perception that the Australian Lebanese are more committed to work due to their aggressive behaviors whereas the Asian-Australians are believed to alter the safety standards, remuneration and job value in the field thus there is more intolerance towards them (Bowen, Edwards & Lingard, 2013).
88% of the Australian workforce is male whereas the female is 54% in all the economic sectors. Women are quitting the construction jobs at 39% faster than the males. 93% of the male is in the building services which further enhances the gender inequality in the construction sector. This affects recruitment because most women would not like to work in male-dominated jobs (Huppatz & Goodwin, 2013).
To combat the impediments of diversity in the construction industry, the management of the various companies should embrace the business culture of equality by emphasizing on cooperation, friendliness and good interpersonal relationships. This can be achieved through inclusion Loosemore et al. (2012), for it will make the segregated employees feel valued by the organization and other workers. Leadership support should also be at the forefront to foster and encourage successful diversity (Galea, Powell, Loosemore, & Chappell, 2015). Also, the organization should aim to hire from a diverse pool of workers. The Australian ministry of labor should extend the age of retirement which also reduce the problem of in-adequate pensioning and lack of skilled labor in the sector. This will help to accommodate those retired and experienced workforce that is still passionate about working in the construction industry (Drucker, 2011). The various organizational management should also revise and implement policies on training and career development to include the older workers (Tishman et al., 2012).The general negative perception of the construction industry of it being a risky, unfair and strenuous job can be overcome by embarking on a public relations campaign. The ministry of labor in conjunction with institutes of learning should initiate an awareness campaign to encourage the students to pursue construction-related courses.
Conclusion
Based on the findings of this report, it is evident that the construction industry is indeed undergoing some challenges which significantly affect recruitment. The industry is dependent on human labor which also determines the quality of work and the timeframe which are all significant in any successful construction company. Therefore, recruitment is very critical in the construction industry, and thus if not carefully considered, it can lead to the fall of the construction sector. According to this report, factors such as the demand for labor supply, industrial image, and demographic problems affect the recruitment exercise.
References
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