THE USE OF EMPLOYEE RESOURCING STRATEGY FOR SMES IN A CYCLICAL MARKET

Abstract

The nature of the construction industry is one in which cyclical fluctuations in demand are endemic. Such dynamic changes in the environment have numerous ramifications on a construction company which include the inefficient use of manpower, low capital investment, and the under-utilization of machinery. The human resource (HR) challenges facing small and medium enterprises (SMEs) in the construction industry in engaging in the effective deployment and retention of their workforce are more demanding than those encountered by large firms as they are more vulnerable to the fluctuations in demand. The effective use of the employee resourcing strategy is crucial to the long-term viability of construction SMEs regardless of the prevailing economic conditions. In this Dissertation, various employee resourcing activities are discussed as a strategy for managing the HR challenges faced by SMEs in the construction industry. These employee resourcing activities are: human resource planning, flexibility, recruitment and selection, retention, talent management, and employee value proposition. Information was collected through two semi-structured interviews to understand the business environment and employee resourcing activities employed by construction SMEs in Singapore. The interview findings were consistent with the findings through the literature review in that SMEs do not devote much resource to the formal utilization of employee resourcing activities. Recommendations were also made to the authorities to carefully manage and constantly revisit the incentives and schemes to ensure its’ relevance and feasibility for construction SMEs. Also, the Singapore Contractors Association Limited (SCAL) should attempt to admit more SMEs into the association to increase the scope of communication and feedback between the industry and the authorities. Further research could be undertaken to investigate and revise the implementation of the incentives and schemes available for construction SMEs.