Chronicle Of The Neville Wadia Institute Of Management Studies And ResearchISSN 2230-9667

Feb., 2012

183

Human Resource Management

A Research study on Talent Retention -Challenges & Opportunities for Construction Industry in India

Prof. Jaimini Tipnis(Doctoral student)

MPM, LLM, MLL&LW(Ph.D.Pursuing)

Associate Professor

Add:S.No.40/4A,4b1, near PMC Octori Post Kondhawa –Sasawad Road Kondhawa (BK), Pune48

Prof.Vijay Dhole (Doctoral student)

MPM, PGDBM (Mktg) PGTT, DLL(Ph.D.Pursuing)

Associate Professor

Add:S.No.40/4A,4b1, near PMC Octori Post Kondhawa –Sasawad Road Kondhawa (BK), Pune48

Abstract:-In the present scenario, where technology has made spectacular progress and revolutionized the work in every field, particularly in the corporate world, it is not physical assets which are gaining importance but talent has emerged as the forerunner in determining the worth of the organizations. As such sourcing for best talent continues to hold prominence for the organizations. Worldwide organizations are subjected to heavy pressure due to the declining supply of talent. According to a report, over a decade, the demand for talented people exceeds the supply of skilled workers at all levels and in all industries. It has become a challenge for Human Resource (HR) professional to identify and address the key talent issues within the organizations.In the previous years, the market appeared to be a “Buyer’s Market” with excess talent & few employers. But the situation has reversed with the employee becoming a “Seller of his Talent” or precisely the market has turned out to be a “Seller’s Market”. In this situation wherein the best talent is absorbed by the reputed organizations and others who have not developed the reputation of “Employer of Choice” and are not capable enough to compete will struggle for acquiring and re-taining the scarce talent resources. Creative Human Asset Retention Strategies have to be emphasized. Opportunity to grow and learn at work is emerging as a primary determinant of attracting and retaining employees. Cash is not the main factor that keeps employee in their current job or attracts them a way to a new job. This research will explore the only "Intangible Asset" found to predict the future financial performance of a firm is the firm's retention rate for key employees.Key Words:- Talent, Retention process, Performance.1.INTRODUCTION:-Talent is one of the most important assets of an organization. An efficient workforce determines the level of productivity of the organization and thus determines the effectiveness of organizational systems

Chronicle Of The Neville Wadia Institute Of Management Studies And Research ISSN 2230-9667

Feb., 2012

184

Human Resource Management

and processes. Any organization, whether small or large, which expects to grow and prosper, must take the talent retention issue as a top priority. Failure to do so lead to organizational slowdown and steady decline. Even during the times of economic slowdown, it is imperative for an organization to focus on talent retention strategies. This way, the organization can retain talent and make judicious use of the same. The expedition to find the best way to retain talents has taken HR professionals through concepts such as talent reviews, talent satisfaction and talent delights. The latest idea is "Talent Engagement", a con-cept that holds that it is the degree to which a talented talent is emotionally bonded to his organization and passionate about his work that really matters. Talent engagement is the level of commitment and in-volvement a person has towards his organization and its values. An engaged talent is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organi-zation. Talent engagement is a critical ingredient of individual and organizational success. Engagement is strongly influenced by leadership quality, as well as by job and organization features. This conceptual research is designed to determine if the potential for talents to be engaged in work can be predicted at the time of their initial application for work. These studies also provide additional evidence about the impact of talent engagement on important business outcomes.

2. AIMS & OBJECTIVES2.1 To study and understand the concept of talent retention process construction Industry. 2.2To know how talent retention process is carried out in the construction Industry.2.3 To find out whether the talent retention vary with the profession .2.4 An overview of different ideas to retain talented employees .3.SCOPE OF THE STUDY:-3.1The study will comprise to retain talented employees3.2The study in hand will make a very clear understanding about the linkage between Talent reten-tion and productivity, recruiting costs, reduced efficiency in transition and time. of employees from construction industries

4.HYPOTHESES:The tentative assumptions before starting with the actual research work are as mention below:-H-1 Talent Rention in construction industry plays an important role in performance at work.H-2 Personal as well as professional factors are responsible for Rentaining TalentH-3 Talent Rention can be obtain by adopting effective strategies

5.RESEARCH METHODOLOGYThe sample was the employees of L & T posted at ECC Division. Simple random technique was used for collection of data through questionnaires.. Sample Size: The sample size consists of 70 respondents. Data collection: Primary Data – It is the first hand data collected generally through: Questionnaire, Observations, and Survey etc.

6.DATA ANALYSIS AND INTERPRETATIONThe questionnaire included the independent and dependant variables. There were 15 questions. There were four options and one had to tick one out of four. Questionnaire was distributed to 70 construction

Chronicle Of The Neville Wadia Institute Of Management Studies And ResearchISSN 2230-9667

Feb., 2012

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Human Resource Management

staff. Below is questionnaire. Against each option, no. of responses has been given in the right sides which were received.

You would like to associate with which type of company:1. a) Multinational 24 b )Software 21

c) Construction 09

d) Any type of company 16Data Interpretation: The above pie chart shows the employees’ preference towards the type of company. Most employees like to work in multinational company followed by Software Company. Few prefer Construction Com-pany while some don’t have any specific preference.

You are Interested in performing in the company which is:2. a) Making townships 21

b) Making conventional structures 15 c) Doing only infrastructural projects 17 d) All type of structures 17

Data Interpretation:The above pie chart shows the employees’ interest towards the specification of company. Most em-ployees like to work in companies which are into township making followed by the companies making conventional structures. Equal preference is given to companies into infrastructure project and those into all type of structures. 3. In respect to medical facilities at site you would:a) Prefer to have 1st aid kit at site 30

b) Prefer to have any kind of tie up with any hospital whichever is near. 19

c) Prefer to have an ambulance at site 08d) Prefer to have doctor & other necessary medicines at site 13

Data Interpretation:The above pie chart shows what type of safety facilities they want in their organization. Majority of employees prefer to have 1st AID kit followed by the preference of organizations having tie-ups with hospitals whichever is near. Few employees prefer to have doctors and any other necessary medicines at sites. Preference to have an ambulance at site is least preferred.

4.The criteria of promotion should be based on :a) Performance 37

b) Experience 11c) Potential for future 16

d) Good behaviour and good team spirit 06

Data Interpretation:The above graph shows what employees consider should be the criteria of promotion. Majority of em-ployees consider Performance to be the basis of promotion followed by Potential for future basis. Few employees consider Experience to be the basis of promotion. Good behavior and Good team spirit is

Chronicle Of The Neville Wadia Institute Of Management Studies And Research ISSN 2230-9667

Feb., 2012

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Human Resource Management

given least consideration. 5.You prefer to have:a) Bond with company 02

b) No bond with company 13

C) Bond If Company takes care 17

d) Relationship only on professional basis 38

Data Interpretation:The above pie chart shows the employees’ preference towards having bond with the organization Major-ity of the employees prefers to have Relationship only on professional basis, followed by the preference to enter bond if company takes care. Very few employees prefer to have No bond with the company, while least preference is given to have Bond with the company. 6. In a construction industry:a) Performance is given high importance 19b) Personality is given high importance 09c) Liasoning is given high importance 14d)Experience is given high importance 28

Data Interpretation:The above pie chart shows what employees feel important in an organization. Experience is given im-portance by majority of the employees followed by Performance. Liasoning is given importance by few employees while least importance is given to Personality by the employees.

7. In a construction industrya) People join with long term career goal 21

b) People join with short term career goal 27

c) People join just to take some experience 08

d) People join when no other option is available 14Data Interpretation:The above graph shows what employees perceive the reason with which they join Construction Com-pany. Majority of employees feel that People join Construction Company with short term career goal followed by those who join with long term career goal. Few perceives the reason to be when no other option is available while some joins to take some experience 8. Retention level is low in a construction industry:a) due to problems with quality of work 11b) due to safety problems 16

c) due to construction related many problems 38

d) Statement is not correct at all. Retention is not a problem. 05Data Interpretation:The above graph shows what employees perceive the reason why the retention level is low in Construc-tion Company. Majority of employees feel that due to construction related many problems the retention

Chronicle Of The Neville Wadia Institute Of Management Studies And ResearchISSN 2230-9667

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level is low followed by the reason of safety problems. Few perceives the reason to be problems with quality of work while very few feels that statement is not correct at all and retention is not a problem.9. Project in a construction industry gets delayeda) because of shortage of labor 14b) because of shortage of manpower 24c) because of shortage of quality staff 19d) Statement is not correct at all 13

Data Interpretation:The above pie chart shows what employees perceive the reason why the projects in Construction Com-pany get delayed. Majority of employees perceives the reason to be shortage of manpower followed by shortage of quality staff. Few perceive the reason to be shortage of labor while very few feels that statement is not correct at all.10.To make customer relationship healthy in the construction industry is

a) Difficult. 17b) simple 14c) almost impossible 05d) a challenge 34

Data Interpretation:The above pie chart shows employees’ perception towards customer relationship. Majority of employ-ees perceives that the customer relationship is challenging, followed by the perception of customer relationship to be difficult. Few perceive the customer relationship to be simple while the perception of almost impossible is given least preference.11.Compensation in a construction industry is generally:

a) low 24b) high 08c) average 32d) on par with market 06

Data Interpretation:The above pie chart shows what employees feel about the compensation in a Construction Company. Majority of employees consider the compensation to be average, followed by the consideration of com-pensation to be low. Few perceive the compensation is high while very few consider the compensation is on par with market. 12.In a construction industry a) it is difficult to measure individual performance 21

b) it is simple to measure individual performance 08c) Individual performance should not be given importance. Only team perfor-mance should be measured

36

d) Top management should have absolute discretion power for performance because of safety, health and environment problems

05

Data Interpretation:The above pie chart shows what employees feel about the measurement of performance in a Construc-

Chronicle Of The Neville Wadia Institute Of Management Studies And Research ISSN 2230-9667

Feb., 2012

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Human Resource Management

tion Company. Majority of employees feel that individual performance should not be given importance; only team performance should be measured, followed by the perception of measuring individual per-formance to be difficult. Some perceive it is simple to measure individual performance while very few feel that the top management should have absolute discretion power for performance because of safety, health and environment problems.13. How do you feel about growth opportunity in your organization?

a) growth opportunity is less 27b) growth opportunity is high 13c) There is average growth opportunity 23d) It is on par with other industries 07

Data Interpretation:The above pie chart shows what employees feel about the growth opportunity in a Construction Com-pany. Majority of employees feels the growth opportunity is less, followed by growth opportunity to be average. Few perceive the growth opportunity is high while very few consider the growth opportu-nity is on par with other industries.14.Due to safety problem in a construction industry:

a) People feel insecure 24b) People are not bothered about safety 08c) Don’t think about safety and leave everything on management. 09d) want to leave organization early 29

Data Interpretation:The above pie chart shows employees’ perception towards the consequences of safety problems. Major-ity of employees want to leave the organization early while some people feel insecure. Few are of the opinion of leaving the problems on management while very few are not bothered about safety.15.Relationship with client in the industrya) is always good 15b) can never be good due to various factors 27c) has no importance at all 06d) should be good 22

Data Interpretation:The above graph shows employees’ perception towards the relationship with industry. Majority of em-ployees perceives the relationship with industry can never be good due to various problems followed by the perception of relationship should be good. Few are of the opinion of relationship to be always good while very few feel it has no importance at all.

CONCLUSION AND FINDINGSSome of the findings from the responses to questionnaire are following. Employees prefer Multinational companies over Software or Construction Company to associate with Employees of L&T, ECC Division are of the opinion that promotion should be performance based. Ex-perience is given priority over performance by employee. Employees find construction related problem

Chronicle Of The Neville Wadia Institute Of Management Studies And ResearchISSN 2230-9667

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to be the cause of low retention in the organization. Employees’ perception towards customer relation is challenging and difficult. Compensation is found to be average by the employees. More than 50 % of employees prefer team performance over individual performance. Due to safety problem in employees leave the organization early or feel insecure. People join construction Industry not for long term career goal but for short term. They want to take experience for a time being and then leave the organization. The ongoing manpower flow creates many problems for the organization. People see safety as a problem in construction industry. They are more comfortable in working at a place where safety is not a major issue. Since nature of industry makes a construction site unsafe and accident prone area, it is not liked by many of the people. This Research includes a survey done on Talent retention with the hypothesis – “It is difficult to retain talents in construction Industry”. Talent is the main driving force behind the HR’s contribution towards organization’s success. Modern HR executives are well aware of the fact that they need to brand their organizations in an expert manner, so that they can appeal to the right talent they require. But the moot point is unless and until the talent is, upgraded continuously and provided with challenging opportunities, the cycle of continuous attraction and retention of talent is bound to repeat.

Construction industries are facing a lot of problems now. People are not attracted to work in a construc-tion industry. It is becoming difficult to get labor at cheap rate. It is difficult to get quality personnel. Earlier India’s economy was considered a closed one. The only "Intangible Asset" found to predict the future financial performance of a firm is the firm's retention rate for key employees.

BIBLIOGRAPHYPublished books

Kothari C.R., Research methodology-methods and techniques, New Age International Publishers, New Delhi 1985, second edition.• Allan Schweyer• , Talent Management Systems: Best Practices in Technology Solutions for Recruitment, Retention and Workforce Planning,C.B. Gupta•

Online Published material on the world wide web:ISO 9001: 2000 – Quality Management System Management Manual, People and organization Development, Larsen Toubro Limited, ECC • Division.Website: Article on Best practices in Recruiting• http://humanresources.about.com/od/recruitingandstaffing/Employee_Planning_Recruiting_Selecting_Staffing_and_Hiring.htm• www.lntecc.com• www.wikipedia.co• m