Is it Time to Re-Evaluate Your Talent Management Strategies?

People are an increasingly valuable source of sustainable competitive advantage for organizations such as engineering and construction firms operating in a global economy that’s characterized by only one certainty – change. Chronic skill gaps combined with a mismatch between demand and supply of talent mean that getting and keeping the right people in the right places at the right time has never been more challenging.
 Against this background, CEOs of engineering and construction companies are once again citing a lack of key skills as one of the hottest issues on their agenda. HR leaders are being challenged to mobilize talent to help businesses grow. This is prompting many companies to ask if it is time to reevaluate talent management strategies?

Measure to Manage Research indicates that only a minority of CEOs are getting comprehensive HR management information for the measures they say are important. Analytics research shows some interesting correlations:
 • Organizations with higher revenues relative to their human capital investment (i.e., people productivity) are experiencing higher rates of revenue growth (less than 20 percent per year) compared to their competitors. They invest more in recruiting and display better quartile performance in improved acceptance rates for job offers and more rapid time to hire.
• In terms of people management, organizations with lower rates of employee absenteeism and resignation as well as a greater performance-related component in their reward (compared to competitors), display stronger revenue productivity relative to human capital investment and grow their revenues more quickly over time than competitors.
• On a similar basis, these higher performing organizations typically invest more in training.
 Managing Talent to Deliver Value Over many years working with 90 percent of the engineering and construction firms in the Fortune 500, I have found organizations each see ‘talent’ in a unique way, based on business strategy and goals. For instance, there are some businesses that need to rapidly upscale their operations, while others struggle to incentivize and keep their star performers in pivotal roles. But overall, getting talent management right means firms should worry less about their talent problems and more about their business opportunities. This will enable them to identify the specific areas of talent management that could add the most value to their business and the improvements that deliver the best return on investment
John Doherty serves as PwC’s US engineering and construction advisory leader. He has more than 35 years of experience in industry and expertise in the areas of strategic planning, large capital program management, project risk assessment, project bidding, buyout optimization, project execution improvement, supply chain management, strategic planning and IT management and application implementation. John received his Bachelor of Science in Geology from Boston College, a Master of Science in Geology from Dartmouth College, and an MBA from Boston University’s Graduate School of Business.
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Five Ways To Improve Communication Among Construction Staff

Lacking of communication on construction sites can lead to costly delays and much worse. The wrong materials could be installed or a significant element overlooked. Here are five ways to get your construction staff on the right track.

1.Use meetings properly

Most construction groups hold weekly or even daily safety meetings. Covering the required safety topics is important, but this time should also be used to cover any other important issues on the agenda.

To keep meetings orderly, one individual should be in charge of the discussion. Each group supervisor can create a list of their current problems, including parts shortages or change orders. The designated employee can go over the areas and keep conversations from wandering to eliminate wasted time. Simply arranging for all workers to meet for five or 10 minutes before or after a shift will provide the time needed for keeping everyone updated.

2.Post notices                               

Gang boxes and break areas are good locations for posting notices. Use a system of having employees initial notices after reading them. This will allow you to know which workers may have missed the information and you can reach out to them directly. Notices can provide information on everything from change orders to scheduled meetings.

3.Be approachable

This can be a critical issue on construction sites. As a general manager or supervisor, your time is often spent chasing down problems. Staying in one location for any length of time is difficult. Paying attention to every small problem is even more difficult.

Unfortunately, if workers feel they cannot communicate with you, things will get out of control quickly. If your situation does not allow for individual contact, make sure that supervisors are available to all workers on crews. Employees must be able to go to a supervisor when problems develop, and the small problems are often the ones that quickly become major work interruptions.

4.Follow a chain of command

Because communication errors can be so costly, you need to make sure that you establish a strong chain of command. Again, you may not always be available, which leaves crew supervisors in the position of making critical decisions. The responsibility level of each supervisor depends of the exact nature of your business, but all workers must know where to go to get the answers they require. Your supervisors can then contact you or handle problems and advise you of the solutions later.

5.Use technology for all workers

Communication will be greatly improved when issues are relayed immediately. Cellphones are not always the answer on construction sites, especially for heavy equipment operators.

Tablets or laptop computers can be used to store current blueprints and can be updated quickly through wireless technology. These can be easily mounted in heavy equipment to provide operators with the latest data they need to get their work done the right way. By adding GPS tracking, supervisors will always know where operators are, reducing the time spent locating operators and equipment.

Making technology work for you will reduce communication delays and mistakes. Each supervisor has the ability to use their own device to keep in touch with crew members. Changes to blueprints can be made without finding each outstanding hard copy and replacing it. While this may not eliminate all errors, it will make your daily operations easier while providing more control over individual stages.

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Five Tips for Construction Claims Risk Management

Risk management in construction 

 Conduct a risk assessment for all aspects of your construction projects not just the statutory items such as Health and Safety. Ensure that you are maintaining detailed records and that they are accessible to the relevant people. By doing this a great deal of risk can be averted. Not only that, but a company’s resources can be protected, along with their finances.

 1.Start writing
 Contract negotiations are one of the earliest stages in any construction project, as well as one of the most important. This is where intentions are stated, realities are acknowledged, budgets are formalized and – most importantly – stipulations are inserted for specific eventualities. Unless a standard JCT/NEC contract is being used, contracts should be unambiguously worded to avoid rival lawyers finding loopholes in the event of litigation. Equally, common sense should also prevail, which is why it’s a bad idea to over-promise at the tendering stage. Contract formation usually exposes any over-optimism in a bidder’s approach.

 2. Fail to prepare…

 It’s a cliché, but a relevant one. Failure to prepare for potential issues or scenarios can effectively store up problems for a later date. For instance, it’s a boring job but if checks aren’t made that the correct version of drawings and specs are being used by all parties then a claim or an element of rework is likely to be on the cards. An appropriate risk assessment would highlight the correct procedure for this mundane but vital task and the project would get off on the right foot.

A detailed plan of action should be drawn up, followed in sequence and fully recorded at every stage. This can take many forms, from the all-important site diary to notes on any client communication - no matter how informal or brief. That way, a stout defence can be mounted against any future claims, with detailed evidence to show that the agreed processes were adhered to at all times.

 3. Variations and retention

Variation requests are almost inevitable during construction projects and it’s impossible to predict every issue that may arise. Managing variations is an art-form rather than a science, but the key to handling them effectively is to manage the flow of paperwork and ensure that key people don’t have to drop what they’re doing in order to respond effectively. Losing these personnel for periods of time while they play catch-up can be as much of a drain on a company’s resources as a financial write-down. It’s far better to equip employees with the tools and procedures that allow them to resolve potential issues, efficiently and effectively.

Retentions are another cause of strife and redirected energies. Even a five per cent retention value can be significant in a seven or eight-figure contract, so if the client tries to withhold final payment, it’s important to robustly pursue this with the correct and pertinent information to hand. Again, comprehensive paper trails are crucial if there is any disagreement about a job’s completion or quality.

4. Call in the experts

Any contractor should know their way around a standard form contract, but because construction contracts are sometimes open to interpretation it is advisable to seek experienced counsel in this area and also when dealing with highly specialised areas like insurance. Issues like health and safety are too important - and potentially litigious - to be managed by inexperienced staff. That’s particularly true given the penalties (including prison sentences) that can occur following a major incident, particularly if on-site personnel hadn’t been provided with appropriate training and PPE.

5. On the record

Effective record keeping is the bedrock upon which all the above problems can be managed, diminished and resolved. However, this involves more than producing a daily diary of events, or communicating with suppliers by email. It involves combining disparate elements like photography, site reports, accounting and third-party correspondence into a single cohesive system. It should be undertaken at every stage of a project’s lifespan and be universally accessible.

The type of records required can encompass almost anything. Because of this, many companies struggle to maintain comprehensive records. Individual employees often have their own data silos, which are not part of any centralised information system. It isn’t good enough for staff members to tap their foreheads and say “it’s all in here”, or to put their trust in offline databases on easily lost or damaged computers without backup copies. A full record of events should be exactly that, with no exceptions for lost paperwork or computer viruses.

This is where the right construction management software can be beneficial, providing for comprehensive record keeping and note-taking. As well as offering real-time updates on costs and overspends, effective software will enable everyone to see the same information, with a consistent, joined-up timeline offering an unambiguous record of events. Best of all, information can easily be retained long after a project is concluded – six years is the minimum period that records should be kept.
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