This report has been complied by
Suheyla Mohamed for the HR Director to present to the Board of Director at
In this report I will be writing as
an assistant in the HR department of Nugent and Barton Construction Company and
will contain key information, analysis and recommendations that will allow the
business to take actions to improve upon its current situation. The report will
seek to identify the main human resources issues, and what human resource
planning involves and its importance to NBCC, also make clear recommendations
about the key issues to be considered by NBCC to maintain its competitiveness
and continuing success.
Construction is one the largest
sectors in the UK economy. It has over 280000 business with approximately 2.9
million employees, there has been a growing demand for construction services.
The UK construction has been a key driven of economic growth, however it can
face changes in the external environment. In 2008 the recession had a huge
impact on the sector with its contribution to the UKs value of goods and
service produced falling from 8.9% in 2007 to 6.7% in 2011.
The construction industry in the UK
is the largest in Europe. The UK has a good international reputation for
construction services. If the construction industry in the UK stays in the
leading position it must be ready for emerging challenges and, at the same time
maintain its competitiveness.
Competitiveness in the construction
industry is very high which means that a company should good skills and
flexibility in a workforce. The most people in the construction sector holding
the higher level qualifications continues to increase.
Analysis and Human resources issues
Nugent and Baron Construction Company
is general construction company based in the west midlands. It works in the
contracting sub-sector means they specialise in the construction of buildings
and civil engineering. NBCC is an award winning company that has won the best
medium sized house builder of the year award three times.
NBCC needs to continue to be
successful It needs to focus on maintaining a skilled and flexible work force.
This means having an effective human resource planning system which will help
NBCC anticipate labour needs which will improve demands of the company to
customers. Looking at table 1 – UK construction industry productivity change
and profitability it shows that the significant data for the productivity
change in the industry is a stable rating at 0.5 – 0.5 there is also a stable
probability data as a whole.
Manging human resources efficiently
is essential to the success of any organisation. NBCC need to ensure they
recruit the right people to meet the needs of the business plan.
NBCC can forecast labour demand in
the UK commission for employment and skills these consider employment forecasts
by industry profession qualification and employment position mangers will use
these data for future employee skills needed. They need to make sure they
are making the correct labour market analysis meaning to help them make the
right employment decision for the business. Mangers should analyse labour
trends at an international level. NBCC can anticipate labour need with
the sources of data. They can also develop future staff by monitoring, monitoring
the labour market in different countries such as the west midlands the can also
monitor the percentage of different ages that are involved in the industry the
most. Looking at table 2 – age distribution of NBCC staff it shows that there
is a higher percentage of staff at 38% that are 26-40 this shows that this
company have older age people working as they may be more skilled and more
qualified than young people. However this company want to invest in training for
more Youngers employees. NBCC has a young workforce and a much lower turnover
of staff than average within the contracting sub-sector.
There are also no apprenticeships in the
construction industry. Many young people that join these apprenticeships tend
to not finish them with means people are not getting qualified this is why NBCC
have self-employed workers, however Self-employed workings don’t receive
sufficient training as they can go thought will a full course of training and
the possibly leave the company at the end. The construction industry is a
competitive market there are lots of firm because the industry is growing. In table 3 – The UK construction industry
staff turnover rates shows that the staff turnover of 4.9 in NBCC is nearly
half of the sub-sector. Since 2012 staff turnover has increased 2%. They can use Lean manufacturing aiming to
improve profit reduced levels turnover rates.
NBCC need to maintain a flexible
workforce they need to aims to provide the company with an adjustable support
to its use of employees at busy times employees within a multi-skilled and
adaptable workforce can be moved to handle critical job tasks that are under
pressure. NBCC need to focus on team working skills and staff that should be
getting along because as a company they all have one business objective and
this can speed up the process.
NBCC management need to start
organising and arranging relationships between human resources and other
resources in order to accomplish business goals. The workers need to start Controlling
the workforce and ensuring that all of the activities happening are to meet the
HR need to hire a supportive leader
that is envisioning and are able to create an image of the future and develop a
strategy to achieve it. They need to communicate to others and convince them to
buy in and bring them into the vision of NBCC to continue to being a successful
construction company. Also energising the individuals. A good leader will make
people feel much more able to achieve targets. This is about mobilising and
focusing on the construction activity within the contracting sub-sector.
NBCC have always invested in staff
by providing training a development opportunities to employees at all levels
from younger employees to senior. The training seeks to identify existing
skills and skills gaps in the NBCC work force and is used to determine training
requirement. It may be used to identify the level of ability. The NBCC
development program is about helping individuals to achieve their full
potential regardless if it’s related to their current job. Table 4 – NBCC data
shows the company has a net income of £3.24 million they would possibly need to
spend some money on training needs as thus may be expensive to cater for all
staff. NBCC gives about 600 training days over the time period of 2012 to 2017.
In the company only 15% of staff are joining the programs which means the other
staff are not motivated enough to do so.
Conclusions and recommendations
The key recommendations based on
the current position of business are as follows there is a need for appraisals
in the business. One person needs to take on this role. The manager must
organiser an appraisal system and the leaders need to inspire the staff. They
must set the way forward and provide vision for the employees. They must
influence all employees and they will then pull the business together.
One system that they can use is a self-assessment
appraisal method this is where the employees should evaluates their own
performance against individual this will help employees as they can teach each
other to be multi skilled in the workforce and they can teach each other there
different qualification the Impact of
appraisal is that for many employs a performance appraisal represents one of
the only opportunities to have a focused conversation with one of their
colleagues, supervisor or manger this is also the same for the business, they
may get an opportunity to actually engage will staff. The mangers can use a
standard 360 apprise which involves a face to face feedback session where the
staff can ask their own questions and listen to feedback.
NBCC can do group targets and
appraisal for each employee and agree with set of individual group targets
which they are expected to achieve over the course of the next work period
before the next appraisal.
Motivation of employees in NBCC
need to be long lasting as it is related to high performance and productivity.
HR planning involves creating a place where employees have a positive attitude
to work and feel commitment to the organisation through personal development
incentives and pleasant working environment as a construction site could be a
dangerous place to work, employees want to feel safe at work. This is where the
Quality standard kite mark should be the goal to achieve this is an award to
companies to the organisations that lead support to improve people’s
capabilities to achieve high performance and good working environments. In
conclusion if NBCC can included there things into the business it will be able
to maintain its competitiveness and continuing success.