Recruitment and Turnover in Construction Industry
Recruitment and Turnover in Construction Industry
The consumer Durable Industry can be identified as a
field where there is a higher rate of employee turnover
recorded across the boundaries of the whole wide
world (LinkedIn, 2018). The index given below proves
the fact in contrast to the other industries
that are in the business.
Sectors with Highest Employee Turnover Rates - Year 2022 (Awardco, 2022)
Homelands Skyline (Pvt) Ltd and Prime Lands (Pvt) Ltd are one of the leading companies in the field of construction and real estate in Sri Lanka. Homelands Skyline maintains a committed work plan where employee engagement is respected as much as individual dignity and human rights. The employment practices of the company are premised on attracting and retaining human talent based on merit.
Additionally, the selection and hiring of workers with the capacity to lead the company in the future ensure the expansion of the enterprise. While making recruiting and selection decisions, a number of other elements must be taken into account in addition to academic qualifications and skill levels.
Even Though the company has adopted a very systematic way of recruiting employees to the Company via a regular process it has identified that there is a reasonable employee turnover which can be considered as a high rate. According to the review of the senior HR manager, Employees may leave a company for a variety of reasons. Many of these issues can be avoided by managers who concentrate on developing their successors. Manager incorporates skills and leadership training into their daily contacts with workers when they recognize promise in a worker who possesses the necessary personality attributes. Once employees become aware of their manager's and the company's value for them, the corporate culture may be greatly impacted. The Company may be able to retain highly effective, devoted personnel and avoid the high expenses involved with the recruitment, selection, and training of new employees by empowering employees through training and development of new abilities.
High Employee Turnover in the Construction Industry
Turnover
causes harmful effects to both employees
and firms (Glebbeek and Bax 2004), especially, when considering the field
of construction sector because it negatively impacts in the employee welfare
and also on the well-being of the company
(Carmichael et al. 2016) case of its productivity and performance (Ayodele et al. 2020). Employee turnover has detrimental consequences on
organizational performance (Mumun & Hasan, 2017)
Employee turnover is a common fact in any of the construction industries, but since it is at a drastic level in the field of construction the fact should be taken into serious consideration as it affects productivity and meet the expected deadlines that promised to hand over the projects to the customers.
Those
of us with investments in the construction sector won't be surprised by these
numbers. Construction agencies are under fiercer competition than ever, and the
influx of newer agencies has only fueled a "race to the bottom." New
construction firms frequently lack the expertise developed over many years in
the industry. Retaining construction employees is relegated to the bottom of
their list of priorities as they instead concentrate on fast gains.
Together with the actual expenditures associated with a high staff turnover rate, there are significant losses that are harder to quantify. One employee departing while a team is just starting to gel might change the dynamic and cause issues for the remaining team members. When multiple employees depart, the effect is undoubtedly high. New construction agencies lack the knowledge which is gained from decades in the field. Instead, they focus on quick wins, and retaining construction staff is pushed to the lower levels in their priority list.
Together with the actual expenditures associated with a high staff turnover rate, there are significant losses that are harder to quantify. One employee departing while a team is just starting to gel might change the dynamic and cause issues for the remaining team members. If more than one employee leaves, the entire working process may change, leaving the remaining employees disenchanted and disillusioned with how significantly their working environment has changed.
The Society of Human Resource Management identified that the average employee turnover for any industry stands at 15%, whereas in the construction industry, it stands at 53% annually, which is fairly high compared to other industries.
People
may leave their occupations due to a lack of job satisfaction, low safety, less job security, poor recognition, work-life
conflict, or a decline in justice. In addition, delayed promotions, low
motivation, and disinterest are some more indicators that a person may decide
to leave their position. The speaker concludes by stating that
"Organizations are better equipped to retain personnel if they address the
issues of those individuals that might lead to a control of employee
turnover."
References
Ali, N, Jan, S, & Tariq, M.
(2014). Transformational and transactional leadership as predictors of job
satisfaction, Life Science Journal.
Burnett, M 2018, Strategies to reduce employee turnover in the durable goods industry, Walden University.
Jefferson Hansen. (2023) Employee Turnover rates and statistics. Awardco (online). Available at https://www.award.co/blog/employee-turnover-rates. Accessed on 02 April 2023.
Javed, H, Jaffari, A & Rahim, M (2014), Leadership styles and employees job satisfaction, A Case from the private banking sector of Pakistan, Journal article of Asian Business Strategy.
Mamun, C
& Hasan, M (2017), Problems and perspectives in Management.
Thank you for sharing this insightful post on recruitment and turnover in the construction industry. Your article highlights some significant challenges faced by the construction industry, such as high employee turnover rates and the need to continuously attract and retain top talent. It's crucial for companies in this industry to adopt innovative talent management strategies to address these challenges effectively. What do you think is the best approach to retain the employees?
ReplyDeleteThank you Prasadi for your thoughtful comment and for acknowledging the challenges faced by the construction industry regarding employee turnover. Retaining employees is undoubtedly a crucial factor in the success of any organization, and the construction industry is no exception. In terms of the best approach to retaining employees in the construction industry, there are several strategies that companies can consider,
Delete1. Offer Competitive Compensation: Offering competitive compensation is a surefire way to retain employees in any industry. Companies should conduct regular market research to ensure that their compensation packages are competitive and fair.
2. Create a Positive Work Culture: A positive work culture is essential in retaining employees. Companies can create a positive work culture by promoting open communication, recognizing and rewarding employee achievements, and providing opportunities for professional growth and development.
3. Provide Opportunities for Advancement: Providing opportunities for career advancement is another essential factor in retaining employees. Companies can offer training and development programs, cross-functional training, and internal job postings to provide employees with opportunities to grow within the organization.
4. Ensure Safe Working Conditions: Ensuring safe working conditions is critical in retaining employees. Companies should invest in safety equipment, conduct regular safety training, and enforce safety protocols to minimize workplace accidents.
5. Conduct Exit Interviews: Conducting exit interviews with departing employees can provide valuable insights into the reasons for their departure. Companies can use this information to identify and address any underlying issues that may be contributing to employee turnover.
Overall, the best approach to retaining employees in the construction industry is to create a positive work environment that fosters open communication, provides opportunities for growth and development, and ensures safe working conditions.
Your acritical is very important for construction organisations. According to the Mr. A.VARADHARAJ, Mr. IRFAN EC (2019). They said that,” Employee turnover is a major problem in the construction industry. The main reasons of turnover are pay satisfaction, other benefits gained from the company and alternate employment opportunities. The employees were also interested about their work environment. Employee turnover effects the organization as well as the other employees who were part of it. The company may face challenges due to the decreased productivity and lack of the skilled employees. Also leads to problem in teamwork and can cause problems in managing the work. Loss of the client’s satisfaction and it also leads to less work progress ultimately leads to increased construction cost.” Therefor your article match with the Journalist idea.
ReplyDeleteThank you Nimanthika for your comment and for sharing the insights from Mr. A. VARADHARAJ and Mr. IRFAN EC's work. Indeed, the reasons you mentioned, such as pay satisfaction, benefits, work environment, and alternative employment opportunities, are crucial factors that contribute to employee turnover in the construction industry. Addressing these factors through effective talent management strategies can help reduce turnover rates and retain skilled employees. As you rightly pointed out, high turnover rates can lead to decreased productivity, difficulties in managing work, and increased construction costs, among other challenges.
DeleteThe article provides insights into the challenges faced by the construction industry in retaining its employees and the importance of addressing the underlying causes of employee turnover to enhance the overall performance of the organization. This is a very important article.
ReplyDeleteThank you for your feedback Hansika. I'm glad you found the article insightful and informative. Employee turnover can have a significant impact on the performance of an organization, and it's important to address the underlying causes to ensure that the organization can retain its top talent and maintain its productivity levels.
DeleteThis is a good article to get some insight into the rates of turnover in the Construction industry and importance of addressing concerns.
ReplyDeleteThank you for your feedback Malindra. I'm glad you found the article insightful. Please let me know if you have any questions or concerns.
DeleteThanEmployee turnover is the term applied to the cycle of hiring and firing that happens within an organization. It is one of the most important metrics in data-driven recruiting. A company is said to have high employee turnover rates when their employees routinely leave or are fired, resulting in the need to hire again.
ReplyDeleteTalentLyft
https://www.talentlyft.com › resources › what-is-empl.k you for sharing information Renuka ,
Thank you Nilushika for sharing additional information on employee turnover. You are correct that employee turnover is the process of hiring and firing within an organization, and it is a significant metric in data-driven recruiting. High turnover rates can be detrimental to a company's success, as it can result in a loss of productivity, decreased client satisfaction, and increased costs associated with recruiting and training new employees.
DeleteThank you for your insightful topic Recruitment and Turnover in Construction Industry. The high turnover rates in the construction industry can cause delays and increased costs on projects, due to a shortage of skilled labor in many areas. According to Smith (2018), factors contributing to high turnover rates in construction include long hours, physical demands, and safety concerns. To address these challenges, construction companies can improve working conditions, provide opportunities for training and advancement, and prioritize safety in the workplace. These measures can help reduce turnover and retain skilled workers over the long term.
ReplyDeleteThank you for your comment Hadhil. You are absolutely right that high turnover rates in the construction industry can lead to delays and increased costs. Improving working conditions, providing opportunities for training and advancement, and prioritizing safety in the workplace are indeed effective measures that can help reduce turnover and retain skilled workers over the long term. Additionally, offering competitive compensation and benefits packages, promoting a positive company culture, and maintaining good communication with employees are other strategies that can contribute to retaining top talent in the industry.
DeleteHi Kasun, Based on recent research, it's clear that addressing employee turnover in the construction industry requires a multi-faceted approach that focuses on promoting employee well-being and development. Shen et al. (2019) discovered that by tackling the root causes of turnover, construction companies can establish a skilled and stable workforce, thereby contributing to their long-term success and growth. In this regard, organizations in the construction sector should prioritize employee satisfaction by implementing strategies that include providing competitive salaries and benefits, offering career development opportunities, and cultivating a positive work culture, as outlined by Schneider et al. (2017). By adopting these measures, businesses can create an environment that fosters employee engagement and loyalty, leading to a reduction in turnover rates and an overall improvement in organizational performance.
ReplyDeleteThank you Praveen for your comment. I completely agree with your points. The construction industry needs to focus on the root causes of employee turnover and address them through various strategies that prioritize employee well-being and development. Providing competitive salaries and benefits, offering career development opportunities, and cultivating a positive work culture can go a long way in retaining skilled workers in the construction industry. This will ultimately result in a skilled and stable workforce that can contribute to the long-term success and growth of construction companies.
DeleteI found this article on recruitment and turnover in the construction industry informative. The article provides valuable information on the construction industry's high rate of employee turnover and how it negatively impacts employees and firms. The article also highlights how companies can adopt systematic ways to attract and retain human talent based on merit and develop the necessary skills and leadership training. As someone interested in HR, I believe this article offers valuable insights that can be applied in different industries to address employee turnover issues and improve organisational performance.
ReplyDeleteThank you for your comment Tharinda. I'm glad you found the article informative. Yes, the strategies discussed in the article can be applied across various industries to address employee turnover issues and improve organizational performance. It's essential for companies to adopt a systematic approach to attract and retain talent based on merit and provide opportunities for employee development and growth.
DeleteContent rich article with actual numbers. Some key point what I have observed is low rate in government sector. Turnover has negative impact on foreign investment as well, as MNC(multi national company) required sustainable workforce for carry out it operations. It would be nice if you can share/add same figures before 2020 as it is pre-covid era. During 2020 - to date, Covid has impact on all of the above fields.
ReplyDeleteYes I totally agree with the fact in relation to having and analyzing data dating pre covid would be the general way to go however the Sri Lankan construction industry was not only affected due to the pandemic but was affected due to several other socio economic issues post covid as well thereby simulating a model on pre data would not be the way to go forward as per my pow, The pandemic caused significant disruption to the construction sector, resulting in project delays, cancellations, and a reduction in demand for construction services.
DeleteAs a result, many companies have been forced to lay off employees, leading to increased turnover rates. On the other hand, the pandemic has also led to a shift towards remote work and the adoption of new technologies, which may help to attract and retain employees in the long term. It is important for companies to adapt and implement strategies to address the unique challenges posed by the pandemic while also addressing pre-existing turnover issues.
The article presents a valid point about high employee turnover rates in the construction industry, which can lead to detrimental consequences for both employees and firms. Mumun and Hasan (2017) support this claim, stating that employee turnover has detrimental consequences on organizational performance. Moreover, Ayodele et al. (2020) argue that employee turnover negatively impacts the productivity and performance of firms in the construction industry. The article highlights that companies must take a more systematic approach to recruit and retain employees, which includes training and development programs to empower employees. Pedler, Burgoyne, and Boydell (2013) support this approach, arguing that training and development of new abilities can help retain highly effective, devoted personnel and avoid high expenses associated with recruitment, selection, and training of new employees. Overall, the article provides valuable insights into the high employee turnover rates in the construction industry and highlights the importance of systematic employee recruitment and retention practices.
ReplyDeleteThank you for your comment Hassaan. Your insights on the negative consequences of employee turnover on organizational performance and the importance of training and development programs to retain employees are valuable contributions to the discussion on this topic.
DeleteHi Kasun, very informative article. Having around 10 years of experience in the construction industry, I would like to add that most of the construction companies in Sri Lanka do not have a proper employee retention strategy and do not provide training and development opportunities. And also, most employers concentrate less on the wellness of their employees. Before the economic crisis, many construction projects were being carried out in Sri Lanka; hence, employees were able to find another job opportunity without much hassle. Those reasons directly affect high employee turnover in the construction industry.
ReplyDeleteThank you for your comment Chamara. It's great to hear your perspective as someone with experience in the industry. I agree that many companies in the construction industry may not prioritize employee retention or provide adequate training and development opportunities, which can contribute to high turnover rates. It's important for employers to recognize the value of their employees and take steps to improve their job satisfaction and overall well-being.
Delete