Case study: HR Shortage in the Nepalese Construction Industry

Submitted by:

Jiya Tamrakar (207108)

Kathmandu University School of Management (KUSOM)

Pinchhe Tole, Gwarko, Lalitpur

Submitted to:

Mrs. Monika Devkota Shrestha

Faculty of Human Resource Management

Bachelor of Business Administration

2nd year, 4th semester

Section B

June 7th, 2022

1. Analyze the demand scenario for civil engineers, managers and technician in the
construction industry in Nepal. Specially, identify the drivers of manpower demand in the
industry.

Due to the earthquake, there was a loss of infrastructures and the skilled manpower even
before the earthquake as well there was a case of brain drain in Nepal as well, as skilled
civil engineer and technicians seeks profitable jobs and place which Nepal lacks in
various different ways. So, skilled manpower were migrating outside the country on
inside the country in places they were not much needed in that time.
The massive earthquake increased the demand for the civils engineers as everything
collapsed. Houses, heritages, bridges etc all needed reconstruction and skilled civil
engineers which were lacking in Nepal. The construction industry faced with prospects a
rapid growth and prosperity due to the earthquake. The living standard of citizens, civil
war for decade and recent natural disaster on the nation has led to destruction of many
lives and properties all over the nation resulting in increase in the demand of the capable
manpower.
The drivers of manpower demand in the industry are mentioned below:
 from top level to bottom level managers:

Civil engineers

Managers

Technicians
 Reconstruction and change in lifestyle.

2. Why there is a mismatch between demand and supply of qualified managerial and
technical manpower?

Due to the reasons given below there is a mismatch between Demand and Supply of
qualified manpower
 Lack of proper incentives and opportunities, so due to the dissatisfaction skilled
manpower are migrating outside the country with the ability to work efficiently.
 Preference to study abroad and in lucrative sectors.
 Less effective development activity and training towards the potential skilled
manpower.
 Due to Maoist revolution, it resulted in a generation of inexperienced civil
engineers.
 Similarly, many people did not want to become managers for construction
businesses in Nepal throughout the 2000s due to the stagnant nature of the
 industry, and being a manager of a construction company was not popular with
Nepali culture.
3. Identify the basic reasons for less attraction of civil engineers and technicians in the
construction industry in Nepal?

The reasons for the less attraction of civil engineers and technicians are given below:
 Uncertainty of job, not proper placement
 Pay not worth according to the position and ability.
 Political intervene in construction process.
 Not proper knowledge of the culture.
 Changing and Diverse workforce.
 Not proper hiring process.
 Work life balance

4. What specific strategies would you suggest to the industry captains for attracting and
retaining talent?

The specific strategies I would like to suggest to the industry captains are:
 Proper management of diverse workforce and providing proper cultural
knowledge.
 Proper facilities of job securities and salaries.
 Providing better incentives towards the youth workforce to spend their skills in
the required places.

As the industry captains are seeking capable manpower, they should find the
potential manpower who are willing to work with the given facilities and
incentives. They have to provide the proper training and feedback that would
satisfy the potential youth workforce. They can collaborate with the government
to provide the potential migrating workforce to provide with proper opportunities
and to provide incentives to raise the standard of living.

5. In the aftermath of earthquake, can Nepalese construction industry turn this disaster into
opportunities? What role does HRM can play in this scenario?

Of course, the aftermath of earthquake can be turn into the opportunities from the
disaster with the loss of people the country has to bear the loss of the national heritages
as well. So, the loss of time as well as properties and life, there have arisen a great
opportunities for the construction industry where the capable and skill manpower can
grab the provided opportunities. The opportunity can be gained if the workforce will start
working in the field and redevelop damaged properties as they can gain more practical
knowledge as well as they can raise their standard of living.
They can generate potential manpower, assemble the required equipment and required
capital as well as inventory which will lead to the further opportunities.

Human resource Management (HRM), has the major role to be considered as this time
as the marketing has the shortage of manpower, the industry captains can get the
planning strategy through HRM. HRM will help them choose the best alternatives and
course them into action. In order to increase the productivity and efficiency of the
industry HRM can use various motivation tools facilitating manpower with the career
development plans as the manpower should be attracted towards their industry to work
willingly. Employee retention can be improved through motivation and remuneration.
HRM can help the industry to solve the problem of lack of manpower by recruiting and
mentoring new engineers while keeping the organization's long-term goals in mind.