Human Capital Turnover in the Construction Industry: A Review with Focus on Archies Construction Pvt. Ltd

Abstract

This present research focuses on identifying the reasons behind the high rates of turnover among staff at Archies Construction Pvt Ltd and how the problem can be solved. Retirement, voluntary or forced termination is equally costly within the construction business as it heavily affects schedule, cost and organizational performance. This research also studies the internal factors referring to human capital theory, namely job satisfaction, reward, and promotion, management support, and the coercive factors including market trends and fluctuations, competition, and regulation. Employing survey and qualitative interviewing methods, the study combines the closed, quantitative survey data collected from employees and qualitative data obtained from the interviews with current and former employees of the company. The study brings out several internal factors that are important drivers of turnover such as lack of satisfaction with leaders, absence of career development in organizations, and poor employee remuneration. The problem is further compounded by external forces like the competition witnessed when seeking for the qualified personnel and the volatility of the market forces. The assessment points out that high turnover rates raise costs of hiring and training, impact project duration and employees’ morale thereby diminishing a firm’s stability. In response to these challenges, it is suggested that the following retention strategies should be adopted: it is proposed that leadership should communicate more effectively with employees; organizations should provide enhanced career progression plans for staff; and organizations should ensure that rewards and remuneration given to employees are competitive. Moreover, an enhancement of the degrees of employee engagement and supportiveness of workplace climate could enhance employee turnover. In other words, by managing both internal and external sources of turnover, it is possible for Archies Construction to maintain a stable workforce, exhibit sound labor productivity and, therefore, improve its performance on projects in general and its financial performance in specific. The study enhances the existing knowledge on HCM in industries that rely on projects and offers best practices for addressing turnover. Further research could focus on changes in economic or technological factors pertaining to workforce retention in the construction industry.