Addressing traditional HRM challenges in the construction industry: insights from modern HRM literature

Abstract

The construction industry plays a pivotal role in the socio-economic development of any country. However, traditional Human Resource Management (HRM) practices within this sector face numerous challenges, including high labour turnover, skill shortages, and safety concerns, which adversely affect productivity and employee well-being. This study provides an extensive review of modern HRM literature designed to address these challenges towards enhancing organisational performance of the construction industry. The research methodology involved a comprehensive literature review spanning publications from 1990 to 2024, utilising search engines such as Scopus, Google Scholar, Emerald Insight, and Science Direct. The findings reveal that traditional HRM practices, characterised by their administrative focus and reactive approach, have led to significant issues in the construction sector. In contrast, modern HRM practices, which emphasise strategic alignment, employee engagement, continuous learning, and leveraging technology, offer viable solutions. Specifically, practices such as Strategic HRM (SHRM), agile HRM, and data-driven HRM are particularly effective in managing the industry's unique challenges, including workforce mobility, economic fluctuations, and the integration of new technologies. This study contributes to the existing body of knowledge by highlighting the potential of modern HRM practices to transform HRM in the construction industry. Future research should focus on empirically validating the impact of these practices on project performance and exploring innovative HRM strategies tailored to the sector's specific needs.