Unveiling the impact of current HR strategies on employee attraction, retention, and productivity in the Indian construction industry: emerging challenges

Purpose In the rapidly evolving Indian construction industry, addressing the shortage of skilled professionals and improving talent attraction, retention, and productivity is crucial for sustaining growth. Targeted research on the impact of current HR practices on employee well-being, attraction, retention, and productivity is essential, and this study aims to identify existing strategies and evaluate their effects on these key factors. Design/methodology/approach Literature review and semi-structured interviews were used to identify 27 existing HR practices, followed by a quantitative survey of civil engineering professionals from various Indian construction companies. The collected data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM), which provides a comprehensive understanding of the structural relationships and mediation effects of these HR practices on key employee outcomes. Findings Employee Involvement (EI) is the most effective strategy, significantly enhancing Employee Well-Being (EWB) and positively influencing Employee Retention (ER). Health and Safety (HS) also positively impacted EWB but had an insignificant effect on ER and an adverse, negligible effect on Employee Attraction (EA). Growth Enhancement (GE) positively affected both EWB and ER but showed negligible influence on Employee Productivity (EP) and EA. Originality/value These findings highlight the need for construction firms to align HR practices with workforce expectations to enhance talent attraction and retention while fostering a supportive and productive work environment. Utilizing PLS-SEM to assess structural relationships and mediation effects, the study provides valuable insights for HR managers to optimize these practices effectively.