Key Criteria to Evaluate Contractor Performance from Human Resources Management Strategy

The mining industry in Indonesia significantly contributes to employment and economic growth, necessitating efficient human resource management, especially for contractor performance. This study aims to identify and prioritize key human resource management (HRM) criteria essential for evaluating contractor performance within the mining sector. By leveraging comprehensive literature reviews and focus group discussions (FGDs) with HR and safety experts, critical criteria such as safety performance, compliance with labor regulations, employee competency, and fair remuneration were identified. The Analytical Hierarchy Process (AHP) was employed to prioritize these criteria, while Pareto analysis highlighted the most impactful factors. The findings reveal that safety performance is the most critical criterion, followed by employee competency and compliance with labor regulations. Implementing these criteria ensures a balanced framework for managing contractor employees, enhancing operational efficiency, and maintaining regulatory compliance. Addressing these key areas allows the mining industry to navigate workforce challenges and sustain long-term productivity and safety.