A framework for addressing construction labour turnover in New Zealand

Ayodele, O A; Chang-Richards, Y and González, V A (2022) A framework for addressing construction labour turnover in New Zealand. Engineering, Construction and Architectural Management, 29(2), pp. 601-618. ISSN 0969-9988

Abstract

Purpose: The purpose of this paper is to identify critical factors that affect labour turnover in the New Zealand construction sector and develop a framework for addressing this issue. Design/methodology/approach: A mixed-method approach was adopted. A questionnaire survey combined with interviews was used to capture the personal experiences and views of 157 construction workers regarding labour turnover. Findings: The statistical analysis revealed that level of pay, employment relationships, employee welfare, opportunities for career development, commuting distance to work and domestic relationships were the top five factors considered as primary determinants leading to the turnover decisions of most of those surveyed. Factor analysis further categorised the critical factors in three categories, namely, (1) nature of the job, (2) employee satisfaction and (3) employer commitment to staff retention and development. Practical implications: While high labour turnover rates take a toll on many construction businesses, the findings from this research will hopefully provide guidance on areas of improvement to create a sustainable construction workforce at both organisational and sectoral levels. Originality/value: Although the study is New Zealand-focused, it increases understanding of the factors affecting labour turnover in the construction sector, and the framework developed will provide construction organisations with directions in workforce retention and development to reduce the effects of labour turnover on organisational performance.

Item Type: Article
Uncontrolled Keywords: construction industry; labour turnover; New Zealand; organisational performance; workforce
Index terms: interview, turnover, sustainable construction, commitment, toll, survey, methodology, career, questionnaire, construction sector, construction organization, satisfaction, retention, New Zealand, employment, critical factor, statistical analysis, construction labour, factor analysis, organizational performance, construction worker, construction industry, determinant
Subjects: data science, business management, project delivery, psychology, practitioner, data collection methods, risk assessment, organization, industry analysis, transportation engineering, statistical analysis, Geography, professional development, sustainable construction, management, performance measurement, research methods
Topics: Information Management, Engineering Principles, Research Practice, Geographical Context, Project Management, Business Strategy, Sustainability, Risk Management, Roles and Professions, Quality Management, Human Resources, Site Management, Organizational Design
Descriptive scope: 5 PCTEA

N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here