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- HR Construction: A Complete Guide for Employers
HR Construction: A Complete Guide for Employers
- HR Policies & Documentation
Peninsula Group, HR and Health & Safety Experts
(Last updated )
Peninsula Group, HR and Health & Safety Experts
(Last updated )
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From laying foundations to erecting buildings, the construction industry covers all kinds of development projects.
Whether you have five employees or 500, construction employers must ensure their staff work safely and with confidence. HR departments are tasked with hiring employees who are skilled, trained, and fully competent for their role.
Construction is a high-risk industry, where serious health & safety issues can quickly become life-threatening. Without proper maintenance, employers could face legal breaches, major injuries, business closure, and even criminal prosecution in some cases.
For more information on construction HR, speak to one of our expert HR advisors today. We've also created a construction employment contract template for you to download. Now, let’s take a look at ways employers can improve their HR services to encourage success in their construction business:
Recognising labour shortages
The UK’s construction industry faced serious skills shortages in 2024, according to the Construction Skills Network. It’s estimated that 217,000 extra workers will be needed to meet building demands in 2025.
Employers need to recognise potential labour shortage issues within their industry. Not only will this help you meet business demands, but it’ll also encourage continuity, productivity, and revenue.
Let’s look at ways construction HR teams can help improve their businesses:
Recruitment: Working in construction requires people to have specific work experience, qualifications, and even licenses. Your HR teams need to find candidates that have these assets or who can develop them. Prioritise them during your recruitment process – it’s better to extend your talent pool than narrow it.
Retention: HR teams are also tasked with increasing retention rates within the business. But there’s more to keeping employees than increasing wages. Employers need to ensure their staff are happy, thriving, and feel valued within their role.
Job adverts: Employers should make the most of job adverts, specifically through digitalisation. Things like AI and SEO can really help you find top candidates in crowded talent pools. It also modernises your company – setting you ahead of the rest.
Close up skill gaps
Research conducted by the UK government found that construction employment decreased by 1.5% in 2024. Not only does it lead to a delay in production, but it impacts the quality of management and safety compliance.
Employers need to work alongside their HR department to close up skills gaps found within their workforce. With the right steps, it can help encourage business drive, motivation, and loyalty.
Let’s look at ways construction HR teams can help improve their businesses:
Training: Having the right training is crucial in construction companies. Without the proper qualifications, it’s hard to try out candidates – let alone hire them. HR teams can offer training courses, apprenticeship schemes, and internships to both new and existing employees.
Productivity: With a happy and content workforce, the output should be pouring in. Meeting productivity goals directly motivates employees, improves work standards, and progresses business continuity.
Staff development: If you have employees who could aspire to progress their skills, make sure you invest in them. Staff development allows them to grow their personal credentials and talents. With a dedicated workforce, it’ll put your business ahead of the rest.
Encourage employee welfare
The Health and Safety Executive (HSE) reported 138 workers faced fatalities through work-related accidents in 2023/24. Around 604,000 workers faced a self-reported non-fatal injury in the workplace.
Employers must protect their staff from both physical and mental health issues. Protecting employee welfare helps keep them safe at work – minimising injuries, accidents, and harm to others.
Let’s look at ways construction HR teams can help improve their businesses:
Health & safety: Construction sites are packed with all kinds of health & safety risks. Any sign of neglecting your protective duties will soon be uncovered through workplace accidents and injuries.
Employee wellbeing: Construction projects can involve all kinds of complicated and intricate tasks. HR teams need to protect employee wellbeing – and this includes both their physical health, as well as their psychological. Remember, it’s part of your duty of care as an employer.
Travel and accommodation: Depending on where your construction project is located, some employees may face difficulties with commutes and rest breaks. Employers can tackle this welfare issue by offering travel and accommodation support. You’ll soon see their appreciation reflected through hard work, loyalty, and motivation.
Promote diversity, equality, and inclusion
According to the Chartered Institute of Building (CIOB), women only make up 15% of the construction workforce in the UK. The industry also suffers from a significant age demographic challenge, too.
Employers have a responsibility to promote diversity, equality, and inclusion in their workplace. Not only does this promote your brand-name, but employees will also appreciate inclusive workspaces.
Let’s look at ways construction HR teams can help improve their businesses:
Equality and diversity: With the help of your HR teams, employers should aim to promote a workplace that champions equality and diversity. Not only does this benefit your brand, but your staff will appreciate working in an inclusive environment.
Workplace environment: Every employer has a legal duty to provide a safe and secure workplace for their staff. From open communication to safe conditions – having a happy workplace leads to better business morale for all.
Diverse recruitment: The construction industry is one that suffers from diversity factors. Many workers are over the age of 50, often male, and of British nationality (especially after Brexit). HR teams need to diversify their recruitment methods to appeal to a wider demographic of the population.
Get ready for societal impacts
Societal changes, like the introduction of Artificial Intelligence (AI) to Building Information Modelling (BIM), have really impacted the construction industry.
It falls to employers to get ready for such impacts hitting their workers and their company. Failing this leaves your business at the risk of falling behind with the times.
Let’s look at ways construction HR teams can help improve their businesses:
Employment law: The construction industry is one that’s bound with numerous statutory laws and regulations. Ensure your business complies with all laws relating to construction. It’s also key to stay on top of potential legislation that may affect your business in the future.
Trade unions: Job insecurity, housing demands, off-sea investments – any one of these issues can lead to employees contacting their trade unions for advice. Both employers and HR teams need to work together to smooth conversations between them and trade union representatives. Remember, it’s their legal right to join unions without prejudice.
Technological changes: Most sectors haven’t escaped technological advancements – including construction. HR teams should investigate what tech will officiate business success for them. From automating HR processes to investing in AI – the right steps will help lead innovation, creativity, and productivity for all.
Get expert advice on HR for construction with Peninsula
HR in construction helps businesses build a successful workplace environment - for both onsite workers, as well as office-based ones. With the right balance of collaboration and drive, employers can reap the benefits of long-term success for their business.
Peninsula offers expert advice on construction HR. We offer specialised guidance on HR contracts and documentation – ensuring your construction business meets all its HR compliance. We've also created a construction employment contract template for you to download and use in your business - get yours now.
Want to find out more? Contact us on 0800 028 2420 and book a free consultation with one of our HR consultants today.
Sources
CSN Industry Outlook - 2021-2025 | Construction Skills Network
Delivering value from government investment in major projects | GOV
- HR Construction: A Complete Guide for Employers
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