Construction human resource management.
The study examines the skilled labour supply in the South African construction industry and determines whether there is a relationship between trade certification, quality of work output and scarce labour skills.
The rationale for the investigation is based on the view of scholars that a skilled labour shortage is preponderant in the South African construction industry even though there is a high level of youth unemployment in South Africa and that the perceived skills shortage contributes to a decrease in productivity and product quality.
The paper reviews relevant literature and employs a mixed method research approach in collecting empirical data from contracting companies within the Western Cape Province of South Africa that are listed on the Construction Industry Development Board contractor register.
The study demonstrated that there is no shortage of manpower, but there is a shortage of qualified or skilled tradesmen, such as electricians, plumbers, welders, fitters and carpenters, whose professions are more technical and require formal training and certification. The level of supply of skilled tradesmen is attributed to the lack of high-quality basic education, the state of the economy, compulsory certification of tradesmen and an ageing workforce. It was also found that there is a significant relationship between skilled labour shortages and the requirement that labour be certified and that work output is unsatisfactory when there is no certification requirement.
Based on these findings, the study concludes that skilled labour shortages and poor work output quality continue to be experienced in the South African construction industry when workers are unable to obtain formal certification for informal work experience acquired through years of practice on construction sites.
It is recommended that the South African government establish proactive strategies in the form of a framework for use in evaluating, certifying and grading the informal expertise acquired by workers through years of practice. This recommendation seeks to ensure that the supply of certified craftsmen capable of undertaking and producing high-quality construction work meets demand.
Increases in infrastructure spending since 2003 have seen a steady increase in the number of jobs as well as skills shortages that accompany such increases (Construction Industry Development [cidb],
The cidb (
Skills shortage has been a persistent problem and a critical factor facing the South African construction industry (Department of Education and Employment,
The few studies (see Cattell,
According to cidb (
Therefore, the study examines the skilled labour supply in South Africa and determines whether there is a significant relationship between the need for skills certification, skills shortage and quality of work output. The study proposes that there is a significant relationship between the need for labour certification and skill shortages and between the lack of certification and quality of work output in the construction industry. To conduct the study and test these propositions, the study undertakes an analytical review of the literature pertaining to skilled labour shortages. Thereafter, it collects empirical data through a mixed research method approach that includes interviews and questionnaires. The data collected are analysed using inferential and descriptive statistics. Finally, conclusions and recommendations that address the problems of the study are provided.
The section provides an overview of the South African labour market with an emphasis on the skilled labour supply in the construction sector. It presents the current state of the skills supply and identifies holistic factors influencing the supply of skilled labour documented in the literature.
The South African labour market is characterised by a predominance of an oversupply of unskilled workers and a shortage of skilled workers (Department of Labour,
The construction industry is one of the largest employers in South Africa (Department of Labour,
In South Africa, skills shortages exist in many industries, including construction, and have been acknowledged by both the government and industry (Department of Labour,
It can be inferred from the literature that the factors influencing skills shortage include the construction industry’s poor image, the role of the government, the quality and relevance of the training received by artisans, the ageing workforce, the cyclical nature of the demand for construction services, technological advancements, economic conditions and the need for certification. Firstly, the construction industry is perceived as a job of low social standing and as lacking in attractiveness because of its physical demands, long hours, remote work sites and nomadic lifestyle (cidb,
Government plays a significant role in the supply of artisans through the funding of training facilities (Mukora,
The cidb (
Other factors mentioned in the literature as being responsible for skilled labour shortages in the construction industry include the ageing workforce; ageing members of the workforce who are near retirement are believed to affect the supply of labour because whilst fewer skilled workers are entering the job market, a significant number of qualified artisans, approximately 30%, are leaving the job market (Mukora,
The conceptual framework of the study is shown in
The concept of the study.
This study began with a literature review. According to Yin (
The simple random sampling technique was used to select contractors from each grade to form a sample size of 460 respondents. At the end of the survey period, 63 responses were obtained, which translates into a 14% response rate. The survey gathered information pertaining to the investigation into the extent of skilled labour shortage and the factors influencing the shortage, and in-person and telephone interviews were used to examine factors that might have been overlooked in the survey and provide context to the preliminary results. The data obtained from the survey were analysed using descriptive statistics – the Mean Item Score (MIS) and inferential statistics – the Spearman’s coefficient of rank correlation, ρ. A mean score will represent the results of the MIS, which will be a number ranging from 0 to 1. The function of the MIS score is to rank the data collected from the rating scales used in the questionnaire.
where: M1 = none; M2 = low; M3 = average; M4 = high and M5 = very high.
Spearman’s coefficient of rank correlation ρ (rho) (see
(where
Eight telephone and personal interviews were undertaken. The interview questions sought to learn (1) the factors that determine the extent of the skilled labour shortage experienced by a particular company and (2) other factors perceived by the respondents to influence the severity of the skills shortage for various firms in the construction industry. The data collected were transcribed and analysed using thematic analysis. Themes emerging from the interviews were triangulated with findings drawn from the survey and used to gain insight into and contextualise the factors influencing skills shortages in the South African construction industry. These analysis methods ensure the internal validity of the research and increase the probability that the most likely explanations are provided for the observations made (Leedy & Ormod,
To add reliability and accuracy to the data interpretation, Cronbach’s alpha was used, which is a widely recognised approach to objectively measure the reliability of a survey instrument. The Cronbach’s alpha reliability index provides a measure of the internal consistency of a questionnaire instrument in particular, the extent to which the items in a test or scale measure are the same concept or construct and their connection or relationship to the items within the test (Bland & Altman,
Cronbach’s alpha test results for difficulty in obtaining skilled labour and factors impacting skilled labour supply.
Variable | Number of items | Cronbach’s alpha |
---|---|---|
Difficulty in obtaining skilled labour | 10 | 0.912 |
Factors impacting skilled labour supply | 9 | 0.878 |
Overall Cronbach’s alpha | - | 0.908 |
In this section, the empirical data collected through the survey and the interviews conducted are presented, analysed and discussed.
Distribution of respondents by contractor grade.
Size | Small contractor | Medium | Large contractor | Total | |||||
---|---|---|---|---|---|---|---|---|---|
cidb grade | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | - |
Frequency | 2 | 1 | 4 | 30 | 16 | 7 | 1 | 2 | - |
Percentage | 11.11 | 73.02 | 15.87 | 100 | |||||
cidb, Construction Industry Development Board.
The study sought to determine the level of difficulty experienced by employers in sourcing skilled labour. The data obtained in this regard are presented in
Level of difficulty experienced in sourcing skilled labour.
Trade | Frequency | Total response | Mean Item Score | Rank | ||||
---|---|---|---|---|---|---|---|---|
None ---------------------------------------------------------------------------------- Very high | ||||||||
1 | 2 | 3 | 4 | 5 | ||||
Carpenters | 6 | 8 | 11 | 14 | 13 | 52 | 0.68 | 1 |
Fitters | 4 | 7 | 12 | 16 | 7 | 46 | 0.67 | 2 |
Electricians | 8 | 13 | 12 | 18 | 8 | 59 | 0.62 | 3 |
Plumbers | 7 | 10 | 14 | 13 | 8 | 52 | 0.62 | 3 |
Welders | 4 | 12 | 17 | 11 | 4 | 48 | 0.60 | 5 |
Roofers | 7 | 13 | 12 | 13 | 6 | 51 | 0.59 | 6 |
Bricklayers | 9 | 16 | 12 | 10 | 7 | 54 | 0.56 | 7 |
Tilers | 7 | 10 | 24 | 8 | 3 | 52 | 0.56 | 7 |
Plasterers | 8 | 12 | 18 | 6 | 6 | 50 | 0.56 | 7 |
Painters | 12 | 18 | 10 | 6 | 5 | 51 | 0.50 | 10 |
Trade in which employing company requires labour to be certified.
Trade | Frequency | Total response | Mean response average | Rank | |
---|---|---|---|---|---|
Yes | No | ||||
Electricians | 52 | 7 | 59 | 0.88 | 1 |
Fitters | 32 | 14 | 46 | 0.70 | 2 |
Plumbers | 34 | 17 | 51 | 0.67 | 3 |
Welders | 33 | 18 | 51 | 0.65 | 4 |
Roofers | 24 | 28 | 52 | 0.46 | 5 |
Carpenters | 13 | 38 | 51 | 0.25 | 6 |
Bricklayers | 10 | 42 | 52 | 0.19 | 7 |
Tilers | 6 | 45 | 51 | 0.12 | 8 |
Painters | 4 | 48 | 52 | 0.08 | 9 |
Plasterers | 3 | 48 | 51 | 0.06 | 10 |
The study sought to determine the factors perceived by the respondents as contributing to skilled labour supply shortages. The data collected in this regard are presented in
Factors impacting on skilled labour supply.
Factors | Frequency | Total response | Mean Item Score | Rank | ||||
---|---|---|---|---|---|---|---|---|
None -----------------------------------------------------------------------Very high | ||||||||
1 | 2 | 3 | 4 | 5 | ||||
Lack of basic education | 2 | 5 | 8 | 24 | 22 | 61 | 0.793 | 1 |
Economic conditions | 1 | 4 | 10 | 28 | 18 | 61 | 0.790 | 2 |
Compulsory certification | 3 | 9 | 17 | 15 | 17 | 61 | 0.711 | 3 |
Ageing work force | 2 | 9 | 17 | 22 | 11 | 61 | 0.702 | 4 |
Cyclical nature of construction | 2 | 4 | 26 | 18 | 9 | 59 | 0.695 | 5 |
Technological challenges | 3 | 9 | 17 | 19 | 12 | 60 | 0.693 | 6 |
Low income | 2 | 7 | 25 | 17 | 9 | 60 | 0.680 | 7 |
Health and safety requirements | 3 | 18 | 14 | 19 | 8 | 62 | 0.635 | 8 |
Perception of the industry | 7 | 8 | 18 | 19 | 6 | 58 | 0.631 | 9 |
This study sought to test the proposition that there is a significant relationship between the need for labour certification and the perceived level of skill shortages experienced in the South African construction industry. Data presented in
The observed value of ρ (rho) (0.75) is larger than the tabulated critical value (0.65) and is therefore significant at the 0.05 level for the two-tailed test. Based on these findings, it can be concluded that the need for trade certification significantly contributes to the perceived level of skills shortages in the construction industry. Workers may have the necessary knowledge or skills, but they need a certificate to prove it.
The study sought to determine whether there are any differences in the work produced by certified and uncertified artisans. The responses provided to this enquiry are shown in
Differences in quality of work output between certified and uncertified artisans.
The factors influencing skilled labour supply that were identified in the interviews matched those identified from the questionnaire and literature surveys. Prominent amongst these factors were the lack of education, economic conditions, compulsory certification and the ageing work force. However, the interviews did provide additional insight into factors currently relevant to the skilled labour supply in South Africa. The interviewees also revealed that:
All companies in the construction industry need skilled labour as part of their work force. This is to ensure that the quality of the work they do is consistent and of the required standard. Therefore, skilled labour plays an integral role in the success of a construction firm because it affects the firm’s profitability. The number of skilled labourers a company needs is related to its size and the value of the tenders it has won. That is, large companies will have a different scale of low-, medium- and high-skilled labour needs when compared to a small company that normally works as a sub-contractor. According to participant 36: ‘basically, it’s a function of costs and profits. For example, a big company like Murray and Roberts might have a pool of skilled workers employed full time, while a small sub-contractor will only have a few and employ more workers on an as needed basis. A company ideally wants to employ the number of labour as related to their needs, i.e., whether they have work or not.’ (Participant 36, male contractor, Grade 6) The issue of labour brokers (e.g. Colven Nkomo) as a factor influencing skilled labour supply was also mentioned. According to participant 22: ‘labour brokers generally have both skilled and unskilled labour they can call on and employ when they are needed by the companies they service. These workers are not employed by the company but are outsourced and that is why some companies prefer this option because it is easier and cost effective. However, due to the consistency and quality, which is needed in the work produced, they won’t entirely depend on this source of skilled labour, companies will need to have a few of their own skilled labourers to ensure quality and consistency of their work.’ (Participant 22, female contractor, Grade 7) The subject of labour certification and the problems involved in obtaining certification were also addressed. A respondent revealed that there are few people who are certified in any particular construction skill because there are no recognised training centres that have a high level of skill to pass on to prospective students. According to the respondent, the question of differences between the quality of work output of certified and uncertified artisans is irrelevant because skilled artisans belong to an older generation, and much of the training occurs in contracting organisations. Another factor that emerged in the interviews is the procurement targets requirement in government contracts. Government requires a certain percentile of labour to be employed from the area where the project is located. Broad-Based Black Economic Empowerment sub-contractors and suppliers must be hired, and a certain amount of money must be put aside for training some of those workers. According to a participant 47:
‘this may to some extent, affect the amount of skilled labour a company will choose to have, if they have to utilise local labour and Broad-Based Black Economic Empowerment sub-contractors.’ (Participant 47, male contractor, Grade 9)
The survey and interview data were triangulated to ensure the validity that construction firms require skilled labour as part of their workforces. Skilled labour is required to ensure that the quality of work these workers do is consistent and of the required standard. Therefore, skilled labour plays an integral role in the success of a construction firm. The results showed that the trades in which skills are scarce and in which contractors experience difficulty in sourcing workers are those with a technical nature, such as plumbers, electricians and carpenters. These artisans require greater levels of accuracy, a more rigorous education and training process and certification (Wedekind,
The findings of the study match the findings of studies by Awe (
The paper examined the skilled labour supply in the South African construction industry and determined whether there is a relationship between notable factors, such as trade certification, quality of work output and scarce labour skills. The study used a mixed method research approach to elicit empirical data from contractors based in the Western Cape Province of South Africa. It emerged that there were skilled labour shortages in the construction industry, particularly within the electrical, plumbing, welding and fitters’ trades, and that these shortages are correlated with the need for certification and that there is a difference between the quality of work produced by certified skilled workers and uncertified workers. It was also found that the key factors perceived to affect the skilled labour supply are the lack of basic education, economic conditions and the need for certification from a ranking perspective. Based on these findings, the study concludes that South Africa will continue to experience skill shortages, particularly amongst the highly technical trades in which accuracy is required, such as for electricians, plumbers, roofers, fitters and welders, if the basic educational system is not strengthened, if this category of workers fails to become certified and if there is no framework for evaluating the expertise acquired by workers informally through years of experience on job sites.
The paper recommends that the South African government establish proactive strategies in the form of subsidised technical and vocational schools for training tradesmen and for improved secondary education to increase the likelihood that capable individuals will attend FET colleges. It is also recommended that future research examine at least one third of the provinces in South Africa and the obstacles affecting the training and certification of construction industry artisans. The study is limited to the Western Cape Province of South Africa and therefore care should be taken when generalising its results to the general contractor population in South Africa.
The author would like to acknowledge the assistance of the following people in conducting the survey and interviews: Dominic Benn, Bulelani Gwabeni and Tatenda Kanyangarara.
The author declares that she has no financial or personal relationships which may have inappropriately influenced her in writing this article.