Article:

Workforce-related risks in projects with a contingent workforce

Summary:
Introduction:
Two fields, RM and HRM, have co-existed without necessarily recognizing the potential intersection and
unique perspectives that could result from drawing them together.
 (Purpose)Our research aimed to study how HRM could be considered through a RM
lens, and how RM frameworks could be enhanced by a more comprehensive
understanding of the potential “people risk” in projects.
 The study focused on the Oil and Gas industry and undertook interviews with experts in
the field.
 Research provides a unique opportunity to identify critical workforce-related risks
 It has been argued that a project-oriented organization may face additional and unique
challenges in relation to its workforce
Literature review:
The literature critical to this research relates to two key areas:
 Risk management in projects
 HRM in projects.
It is suggested that in project-based organizations “knowledge, capabilities and resources are
built up through the execution of major projects”
Project risk management:
RM has predominantly focused on managing potential threats to organizations’ operations and costs by
taking a very technical approach to strategy, tactics, operations and compliance requirements.
 For this research we have defined risk, in line with the traditional approach, as any threat
to the planned project outcomes whilst recognizing that risk often co-exists with a level
of uncertainty that may lead to either positive or negative consequences.
 In all of the frameworks one of the first steps is identification of risks and it is here that
workforce-related risks should be identified along with other types of risks.
Human resources management in projects:
  Based on their review of research into HRM in projects, in model of HRM in projects which
includes two separate HRM processes; one occurring at organizational level and one at project
level.
 HRM practices such as career development, performance evaluation, and appraisal are
applicable to projects.
 Traditional HRM literature assumes an ongoing working relationship however in project-
based organizations the end of a project often means the completion of employment
contracts and may therefore present unique workforce-related risks.
Research method:
 Exploratory nature of the research question.
 A qualitative methodology is used in this paper.
Research context:
 First, the Oil and Gas industry relies heavily on major projects in order to carry out their
work and in particular they rely heavily on a contingent workforce.
 Second, according to the International Energy Agency (IEA) the demand for Oil and Gas
is predicted to increase steadily through to 2035.
Data collection:
 After interviews with 13 participants, it was determined that no significantly new data was
emerging and a number of key themes were evident (convergence was occurring).
 Convergent interviewing (convergent interviewing is an iterative process where the content of
the interview is limited in structure, but across multiple interviews, the process used is relatively
structured and involves an iterative review of outcomes from each successive interview in order
to continue to refine questions as data collection progresses.)
 The interviews were undertaken by a single researcher, A second researcher was involved in
a pilot of the questions and two subsequent interviews to ensure consistency of application of
questions and probing.

Data analysis:
Data analysis was undertaken in two stages or “rounds”
1. In the first round of coding, referred to as descriptive coding, broad topics of interest
were identified, particularly in relation to the HRM function of reference, for example,
recruitment and selection.
 2. The second round of coding (focused coding) reviewed the content within each of the
codes from the first-round coding and identified themes relating to risks within those
initial codes.
Empirical findings:
The findings are considered within the framework of key HRM areas; Management Practices, General
Employment Practices, Staffing, HR Development, and Compensation and Benefits, along with Project
Completion.
Management practices:
 Risk within the management practices dimension was that of management support and
attitude
 Creating and retaining loyalty and engagement from the workforce
 The final element of this dimension relates to the risk associated with managing the
performance and behavior of contractors to ensure the workforce is meeting expectations,
General employment policies:
 A critical risk reported in this dimension was that of not creating effective cultural
alignment particularly
 Another reported risk under general employment practices was ensuring compliance with
company employment policies;
 General employment practices were related significantly to compliance (both at the
country and organizational level)
Staffing:
Lack of ability to attract an appropriately skilled workforce for a particular project
Another key risk in this dimension was skills shortages and the difficulty that can arise in finding
sufficient individuals with the required skills for the project when these are of limited supply and
in high demand
Another staffing risk identified was a lack of clarity about the capabilities required for particular
positions

HR development:
The main risks identified in the HR development dimension related to induction, approaches to
upskilling, and career development opportunities
Compensation and benefits:
 The other dimension of the findings concerns the establishment of perceived equity in the
rates of contract workers; between contract workers under differing arrangements
 Compensation and benefits was seen as one of the key sources of risk in terms of both
attracting the necessary workforce for the project and retaining individuals working on
the project.
Project completion / dimensions:
completion stage of projects was a specific risk relating to knowledge management and capturing
the knowledge of contract workers before they leave,
In particular, knowledge management also relates to securing any confidential information
Discussion and conclusion:
 Most importantly, we have drawn together the two areas of RM and HRM in projects
 HRM practices are implemented by project managers and operational managers
 many of the risks identified as critical for project-based organizations
Conclusion:
In conclusion, it is clear that although the importance of HRM and RM in projects has been
recognized
. This research has served to build a level of detail into the identification of workforce-related
risks in projects that has previously been absent
Project-based organizations need to be prepared to not only identify these internal risks,