MODEL DEVELOPMENT FOR EMPLOYEE RETENTION IN INDIAN CONSTRUCTION INDUSTRY USING STRUCTURAL EQUATION MODELING (SEM)

In India, number of construction companies is increasing day by day so the demand for the efficient employees is also increasing, but there are lots of dissatisfaction is observed among the employees of construction companies in India which causes increasing rate of employee attrition. Employees of construction industry can be satisfied by motivating them with financial and non-financial encouragements. In this paper, factors affecting employee retention in the construction industry were identified and assessed. The views of 287 employees were collected by the help of structure questionnaires distributed to Architects, Civil Engineers, Builders, Surveyors, Clarks and others from selected construction companies in India. Basic facilities, working environment, scope & opportunities and employee satisfaction were found as the major factors affecting employee retention. To analyze the impact of those factors on the employee retentions, Structural Equation Modeling (SEM) through AMOS Software has been used here. The study shows that all identified factors have significant relationship with the employee retention.