Factors influencing human resource development in Nigerian

construction industry

Adeagbo Dorcas.O.1, Oyemogum Ijego.M.

2

1department Of Building, Faculty Of Environmental Sciences,University Of Jos, P.M.B.

2084, Jos, Plateau State, Nigeria

2department Of Building, Faculty Of Environmental Sciences,University Of Jos, P.M.B.

2084, Jos, Plateau State, Nigeria

ABSTRACT

This work is aimed at identifying the drivers and barriers of Human resource development in

Nigerian Construction firms. Data used was obtained through questionnaire survey and

structured interviews. The survey showed that increase in performance and productivity are

the highest drivers of HRD with 90% response. The next most important drivers are market

forces/economy and technology with 86% response each. Aging work force was considered

the weakest driver of HRD 53% response.

The research showed that low profit margin and high construction costs are the greatest

barriers to HRD with 88% and 87% response respectively. The next barrier to HRD is the use

of adhoc staff with 75% response while the least barrier to HRD is the varied methods of

learning in the industry.

The research proves that most construction firms do not engage in HRD as they are faced

with low profit margins and unskilled labour. With good government policies, loans with low

repayment interest rates could be provided for these firms to improve on HRD.

KEY WORDS: Human Resource Development, Drivers, Barriers.

INTRODUCTION

For any nation to achieve its full potentials, it needs to fully develop its human resource

capital [1]. Nigeria is by no means exempt from this statement and in particular the

construction sector which has performed below its full potential in the last three decades. In

1990, the country experienced a relatively steady growth rate of 6.33% and the building and

construction sector contributed 1.67% of the overall GDP. In 2009, the growth rate recorded

was 6.66% but this time the building and construction industry only contributed 0.23% of the

total GDP [2]. This means that although the construction industry is a vital industry it is yet to

attain its place of relevance in the national economy. The industry can thus increase its

efficiency and generate a sustainable economic environment as it employs more than 15% of

the entire work force of the nation [3].

[4] Foreign construction firms dominate major projects in developing countries as a result of

deficiencies in the capacity of local construction firms. These have limited contracting

capacity and are predominantly small and medium sized businesses. This makes their

participation in major construction works minimal.

In order to improve their rate of participation in major construction works, it is therefore

necessary to review the human resource development of the local construction firms. Human

resource development in its broadest sense deals with competence, culture and commitment

which include opportunities like employee training, career development performance

management, mentoring, etc. [5] purports that construction companies experience many

challenges in human resource management and development because of the high number of

temporary staff. This he says is mainly due to the fluctuation in the demand of the industry

not to mention the subjective reasons (i.e. specific procedure in production, material and

technology) that limit the workers decision making process.

The research therefore aims at identifying the factors influencing human resource

development in Nigerian construction industry. The specific objectives of the study are:

1. Identify the critical elements of human resource development(HRD) within Nigerian

construction firms

2. Identify the drivers and barriers of human resource development in the Nigerian

construction industry

3. Evaluate the impact of human resource development within the Nigerian construction

industry.

METHODOLOGY

The method of data collection was through structured questionnaire survey and examination

of existing records on human resource development activities within the local construction

firms. Fifty (50) questionnaires were distributed in all and 31 were returned

RESULTS AND DISCUSSION

Table 1: Distribution according to construction firms

Firm Type No of

Respondents

% Response

Contractor 17 56

Consultant 8 26

Developer 6 18

Total 31 100

Table 1 shows the distribution of respondents

Table 2: Existence of Human Resource Department

No of

Respondents

% Response

Yes 9 29

No 22 71

Total 31 100

Table 2 shows the respondents who have a human resource department. 71% of respondents do not have an HR

department which implies a limited work force in terms of career development.

Table 3: Firms that engage in active Human Resource Development

No of

Respondents

% Response

Yes 26 84

No 5 16

Total 31 100

Table 3 shows the respondents who are actively engaged in HRD. 84% of the respondents claim to be involved

in HRD but in reality they insist on the work force already acquiring the needed skills at the time of employment.

This shifts the responsibility for staff development from the firm to the individual employees.

Table 4:Factors that influence HRD in individual firms

Human Resource

Development Elements

1 2 3 4 5 Rank

sum

Relative

Index

%

Ranking

Ranking

Order

Training and Development 0 3 6 10 7 114 0.74 74.00 3rd

Career Development 0 5 6 4 1 110 0.71 71.00 4th

Level of Education 0 2 6 0 18 134 0.86 86.00 1st

Staff Development 2 4 6 13 1 103 0.66 66.00 5th

Learning Organisation 6 6 9 5 0 78 0.58 58.00 6th

Organisational

Development

0 0 7 16 3 119 0.77 77.00 2nd

To determine the most important factor of HRD, the respondents were asked to rank the factors based on their

level of importance as shown in table 4. Level of education attained was ranked the most important factor with a

relative index of 86%. Training and development was ranked second with an index of 74% while learning

organisation ranked least with 58%.

Table 5:Group of Employees Considered in HRD

Employees MC C LC Rank Sum Relative

Index

% Ranking Ranking

Order

Management Staff 16 10 0 68 0.87 87.00 2nd

Professionals 21 2 2 69 0.88 88.00 1st

Skilled Labour 7 16 3 56 0.72 72.00 3rd

Semi-Skilled Labour 2 9 15 43 0.55 55.00 4th

Unskilled Labour 2 4 20 38 0.49 49.00 5th

Table 5 shows that the group of employees mostly considered for HRD are the professionals with a relative

index of 88%. The next highly considered group is the managerial staff with an index of 87% while the least

considered group was the unskilled labour with an index of 49%.

Table 6:Drivers of HRD in the Nigerian Construction Industry

Drivers 1 2 3 4 5 Rank

Sum

Relative

Index

%

Ranking

Ranking

Order

Increased performance and

productivity

0 0 0 8 18 122 0.94 94.00 1st

New Technologies 0 2 1 13 10 109 0.84 84.00 3rd

Market Forces 3 0 11 13 4 108 0.83 83.00 4th

Globalization 0 0 11 11 4 97 0.75 75.00 5th

Team Development 0 0 2 16 8 110 0.85 85.00 2nd

Aging Work force 1 6 7 9 3 85 0.65 65.00 6th

Cultural Diversity 8 11 4 3 0 54 0.42 42.00 7th

Table 6 shows that the need to increase productivity and performance is the most important driver of HRD with

a relative index of 94%. Team development ranked next with an index of 84% while the least important driver of

HRD was cultural diversity with an index of 42%. This confirms that the main motive for engaging in any form

of business is profit. Thus those most qualified are often employed to reduce the need for training to the barest

minimum.

Table 7:Barriers of HRD in the Nigerian Construction Industry

Barriers 1 2 3 4 5 Rank

Sum

Relative

Index

%

Ranking

Ranking

Order

Variation in type and size of

projects

4 9 5 4 9 98 0.64 64.00 4th

High Cost of personnel

training

2 6 3 4 16 119 0.77 77.00 2nd

Complex nature of the industry 5 1 14 7 4 97 0.62 62.00 6th

Small profit margins 1 3 1 10 16 130 0.84 84.00 1st

Temporary contract staff being

employed

2 7 5 14 3 102 0.66 66.00 3rd

Various types of construction

trades

8 2 9 8 4 82 0.53 53.00 7th

Time constraint 6 4 6 9 6 98 0.63 63.00 5th

Table 7 shows that small profit margins is the greatest barrier to HRD with a relative index of 84%. The high

cost of training personnel ranked second with an index of 77% while the wide range of construction trade

options ranked least with an index of 53%. The small profit margins experienced by most of the firms make it

difficult to set aside any capital for staff training in most cases.

Table 8: Impact of HRD on individual firms

Impact 1 2 3 4 5 Rank

Sum

Relative

Index

%

Ranking

Ranking

Order

Increased Productivity 0 0 2 4 20 122 0.94 94.00 1st

Organizational Performance 0 0 3 7 16 117 0.90 90.00 3rd

Technical Competence 0 0 0 8 18 121 0.93 93.00 2nd

Employee performance 0 0 3 12 11 110 0.85 85.00 5th

Management Efficiency 0 2 4 8 12 108 0.83 83.00 7th

Increased Motivation 1 3 11 7 4 88 0.68 68.00 8th

Team performance 0 1 0 15 10 112 0.86 86.00 4th

Project Efficiency 0 0 3 9 14 109 0.84 84.00 6th

Table 8 shows that the presence of HRD increases productivity and organizational performance with a relative

index of 94% and 90% respectively while the least important effect of HRD was project efficiency with an index

of 84%. This confirms that the productivity and performance of any organisation are vital for any form of repeat

business.

CONCLUSION

The study shows that human resource development is not regularly practiced in most

construction firms in Nigeria. Majority of the firms are small and medium sized with more

semi-skilled and unskilled work force than skilled work force. Education attainment (i.e. the

level of education attained) was found to be the most influential factor that affects HRD. The

study thus recommends strongly the need for policies on continuous development

programmes to be put in place by the government.

REFERENCES

[1] Folayan, O. (2006). Human Resource Management Theory and Practice. Lagos: Pamaf

Publishing International

[2] National Bureau of Statistics (2009). Annual Abstract of Statistics. Federal Republic of

Nigeria.

[3] Achuenu,E., Izam, Y.D., Bustani S.A. (2000). Investigating the Activities of Indigenous

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[4] Adams O.A. (1997). Contractor Development in Nigeria: Perceptions of Contractors and

Professionals. Construction Management and Economics 15(1), 95-108.

[5] Alvin V. (2011). Factors in Human Resource Management the Influence Construction

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