Optimizing Human Resource Allocation in Construction Projects in Indonesia: A Comprehensive Analysis of Influencing Factors

Abstract

The Indonesian construction sector, driven by population density and infrastructure demands, rebounded from a second-quarter 2020 contraction due to COVID-19, completing projects worth Rp1,311.4 trillion in 2020. Human resource (HR) allocation is critical in this labour-intensive industry, as it impacts project efficiency. This study explores factors influencing HR selection and allocation in construction projects, addressing the challenges of HR shortages or excess. A well-planned HR allocation strategy is essential for a successful project completion. This study delves into the relationships between HR factors, cost, and time performance, emphasizing the importance of effective HR management. It introduces hypotheses for investigation and proposes a comprehensive framework for assessing the impacts of HR, cost, and company-related factors on project performance. This research utilized qualitative analysis methodologies and expert validation to refine the instrument for a nuanced understanding of HR dynamics in construction projects. This study aims to obtain expert-validated factors that influence labour selection in construction projects to improve project performance. This study highlights the need for accurate estimation for HR, thorough planning, and implementation of effective HR recruitment policies.