The construction industry has HR challenges that are shared across several sectors. But it also has some that are specific to construction, and often, its these complexities that carry the most consequences.
Peninsula has been providing HR support for construction companies for decades and is well-versed in the unique challenges construction firms may experience.
Using that expertise, we’ve created this guide outlining the five main HR challenges prominent within the construction industry.
1. Recruitment and subsequent skills shortage
Recruitment is a core responsibility for HR professionals. However, a mix of reasons means finding skilled professionals in the construction industry is problematic.
For example, for some time, the sector has been heavily reliant on an aging workforce. As those construction workers begin to retire, their experience and knowledge go unreplaced.
This in turn creates a significant skills gap, which isn’t presently being filled by a younger generation. In fact, construction apprenticeships have a completion rate of just 53%.
2. Tackling high employee turnover
Compounding recruitment difficulties is employee retention. High attrition rates are synonymous with the construction sector for the following reasons:
Physically demanding: Heavy lifting, long hours, and sometimes harsh weather combine to create an undesirable working environment and burnout.
Poor pay: Low wages are usually a driving force for workers to seek alternative employment.
Limited opportunities: Personal development is important for employees, but the construction sector lacks clear progression paths.
Whilst detrimental to projects, losing construction workers also results in employers incurring additional costs from hiring and training new starters.
3. Meeting Health & Safety responsibilities
As per Health and Safety Executive statistics, last year, the construction sector saw the most work-related fatalities. It’s a collective effort between HR departments and Health & Safety professionals to reduce this figure.
When it comes to protecting workers, the duties of HR in a construction may include the following:
Leading induction processes that encompass risks found on construction sites, emergency procedures to follow, and how to report accidents.
Keeping track of absences to spot patterns, especially if they’re linked to prominent ailments within the industry, such as musculoskeletal disorders and poor mental health.
Ensuring construction workers have proper certifications before they begin work, including CSCS cards and other relevant qualifications.
4. Maintaining HR contracts & documentation
Compliance is key in construction HR, and contracts and documentation are central to that - you can download a free construction employment contract template here.
To ensure laws aren’t breached and that workers operate with reduced risk, those concerned with HR in construction the industry must manage these responsibilities:
Conducting thorough and legally compliant right to work checks.
CSCS card checks ensuring workers have the correct competency cards relative to their role.
Having a record of COSHH and manual handling training records.
Should a workplace accident happen, up-to-date records that clearly illustrate diligence and compliance can prevent legal consequences.
Manually keeping track of paperwork is laborious, and when there’s a large volume of documentation, mistakes may happen. To support with this, firms may consider HR software for construction.
5. Training and development
Linking to both the skills shortage and retention; providing personal development opportunities for construction workers is essential.
Employees value training and progression pathways. When they’re not available, it’s often a catalyst for workers leaving their roles.
Construction HR must incorporate an approach that identifies skills gaps and offers the tools to rectify this.
HR strategies for a construction company to implement
With the right HR strategies, construction businesses can combat the challenges outlined within this guide; but they may need very specific responses to resolve them, which takes up valuable resources.
However, there is one solution that deals with a multitude of issues: construction HR consultancy. Businesses that rely on an outsourced construction HR service receive many benefits, most notably:
A single solution for several challenges
Construction firms can focus on projects
Peninsula delivers expert HR support for construction companies
If you’re a company struggling with HR challenges in the construction industry, you’ll benefit from outsourced construction HR services.
And with over 40 years’ experience, there’s no better partner than Peninsula. With us, your business gets:
Contact us today to learn about our services and HR construction advice.






