Talent construction

It’s been said that the construction industry can offer a barometer reading for the future economy. When building is taking place, you can be confident the economic activity in other sectors will soon stir. At the same time, when the brakes appear to be on the property and development markets, things are likely to get worse for all industries before they improve.

Tim Threlkeld, Managing Director, ISG (Asia) Hong Kong, knows this only too well. He says the cyclical nature of the property business can have a destabilising effect on talent within the industry. Engineers, builders and construction managers, and therefore construction companies such as ISG, rely on a steady stream of short-term (up to three-year) projects for their career longevity. An economic downturn, such as that experienced in Asia last year, can make things very challenging.

It’s why HR is of vital importance for ISG; and why people issues take up much of the Managing Director’s agenda. He says handling them correctly helps put the company in good stead for attracting and retaining the best talent.

Surviving the recession

Threlkeld says the recent economic troubles made life testing for ISG and its industry, but not impossible. He says a good lineup of talent, a range of longer-term projects, and a good diversification policy helped shield the company from the worst of the downward cycle.

“We weren’t focused on one particular sector,” he says. Instead, ISG enjoyed ongoing projects in the education (a high school and library), hospitality (including casinos in Macau and one of the Singapore integrated resorts), boutique retail (including new stores for Chanel and Ralph Lauren), and transport infrastructure (such as a project within the Hong Kong International Airport). The company has also been involved with preparations for the World Expo in Shanghai this year.

Threlkeld says this diversity was a shining light on what could otherwise have been a very difficult year. “Having sorted out our position in all of those different areas, certainly enabled us to ride through it,” he said.

Competitive talent market

Of course, a property boom can also have negative consequences for construction businesses. Threlkeld says there is a limited number of talent in the worldwide industry, and that talent is often very mobile. If demand rises, even in only one part of the world, compensation packages can be forced higher internationally. Even then, it can be difficult to retain staff as people seek out the biggest and best projects.

Take the recent Dubai property boom as an example. While this has now well and truly stalled, in its heyday the Emirate attracted some of the strongest construction minds and skills from throughout the world. They went in search of not just big pay packets, but also the prestige of working on projects such as the massive Waterfront redevelopment.

Threlkeld says the exodus of construction talent toward the Middle East was certainly noticed at the time. But since the Dubai property boom has slowed, many are returning to East Asia. “Five years ago, more left Hong Kong for Dubai,” he said, “This year, there has been a slow trickle of them coming back.” He notes that the Dubai boom also coincided with a strong increase in construction demand in Macau.

Retention through engagement

Threlkeld says this has been less of a problem for ISG, because of its strong focus on staff engagement and rewards. The wide diversity of projects also makes staff less likely to succumb to itchy feet. Still, it’s important to constantly have new and different challenges ready for staff.

“To develop staff you need to find dynamic projects that are complex and challenging,” he says. “Our challenge is in having a constant stream of projects coming through and planning our staff. We try to give them the assurance that each project (will be) as best fitted as possible.”

This is not just new projects that start as older ones are being completed. Rather, it’s about creating a development and leadership ladder for each staff member. “If you come on as a site coordinator you can see your way to becoming assistant project manager on a later project,” he says.

Getting staff on board

Recruitment is a tough task for any employer in the construction arena. Getting high quality skills and management talent on your side could seem like a never-ending auction during some of the recent property booms.

Threlkeld says the ISG culture both helps, and hinders, this task. On the one hand, he says the company has learned a lot from past recruiting experiences and now accepts only those that truly espouse the company’s values and work ethic. “We look for very self-motivated, passionate, and detail-orientated staff. They should be educated and show a commitment that they want to develop their careers.”

This means focusing on a combination of cultural and technical skills, he said.

But at the same time, the culture gives ISG a new avenue of recruitment where Threlkeld says much of this talent can be found. More and more, the company is relying on internal referrals for recruitment. “We believe that good people will introduce good people, and we try to reward staff for that,” he said.

Of course, in the lead up to the expected economic recovery, ISG has also had to rely on more traditional recruitment channels. “We do rely on consultants that know our requirements; we’re trying to maintain constant sourcing of talent in the marketplace as we get ready for the upturn.”