Employee retention strategies and practices in the construction industry in Sri Lanka

Abstract

This study focuses on the construction industry's challenges in retaining employees due to its hazardous workplace. Understanding employee expectations is crucial for enhancing retention rates and improving operational efficiency, especially in the construction sector, which faces significant challenges in recruiting and retaining top talent. This research aims to analyze the retention strategies and practices adopted within construction firms, focusing on their efficacy and benefits for both project and non-project employees. The study explores the effectiveness of these strategies in bolstering company performance and employee satisfaction. Additionally, it investigates the challenges associated with implementing these retention strategies and proposes solutions to overcome them. The research adopted a qualitative methodology to investigate diverse strategies and practices utilized in employee retention within the construction industry across ten construction firms in Sri Lanka. The data collection procedure encompassed interviews with upper management representatives and focus group discussions with laborers at various construction sites. The study culminated in analyzing distinct organizational viewpoints on employee retention, unveiling a spectrum of strategies employed by these entities. The conclusions drawn from this research are contingent upon the varying perspectives of different organizations within the industry. These conclusions shed light on organizations’ diverse employee retention strategies and approaches. These recommendations aim to address the needs and expectations of the workforce, fostering a more conducive environment for employee retention within the construction sector