Human Resource Optimization and Its Impact on Financial Outcomes in Infrastructure Policy Implementation

Abstract

This research article aims to examine the effect of human resource optimization (HRO) on financial performance in infrastructure policy. The study uses both quantitative analysis of financial performance data of twenty large-scale infrastructure projects and interviews with project managers and Human Resource managers. The study establishes positive relationships between different HRO activities including workforce distribution, training, staff retention, and skill development, and financial outcomes like budget compliance, cost-effectiveness, and ROI. The findings showed that projects that effectively managed the strategic aspects of human resources had better financial performances, underlining the critical importance of HRO in attaining operational effectiveness and cost containment. Further, qualitative data highlighted the issues of staff scarcity and high attrition, which underlined the importance of staff retention. The study therefore finds that human resource management is not an option but a strategic tool for improving the financial performance of infrastructure projects. The findings obtained contribute to the further development of the understanding of the link between human resource management and financial performance in different industries.