Problems in Retaining Employees in Construction Companies in South Africa Essay



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Title:Problems in Retaining Employees in Construction Companies in South Africa

Aim– The intent of the undermentioned research is to measure the factors lending to retaining employees in the building industry. Will carry out research and do enquiries in order to find why employees are go forthing their several companies. It will besides look into current keeping programs every bit good as cost deductions to the employers.

Design/methodology/approach– This survey is foremost a literature reappraisal utilizing informations based on content analysis, instance surveies and historical informations. Second, information would be collected from 10 indiscriminately selected employees working within the industry. Interviews are conducted with different companies human resource directors every bit good as employees who have left their occupations in South Africa to work in other building companies, including grounds as to why the decided to go forth.

Findingss– There seems to be a high figure of employees who are taking their professional services to other companies, and there are a figure of different factors that contribute otherwise to the employees go forthing their companies. The negative effects to this are cost and managerial deductions to the employer, besides ensuing in lower productiveness degrees which affect current undertakings they are working on and therefore the fiscal position of the company.

Originality/value– The information will help South African building companies to see its building employees and make more to guarantee they remain within the state, if non their current company. They can make this by originating programmes within the industry that benefit both employer and employee.

Keywords:South Africa, Construction Industry, Retain Employees

1 Introduction

1.1 General

Retaining employees is going a major job in building companies. The demands of the work force are invariably altering and companies aren’t able to maintain up. This causes good people to go forth good occupations. Peoples are being exposed to new and better chances much more easy in these modern times, and so it is much easier for a individual to go forth their occupation for greener grazing lands. Many companies don’t gain how of import it is to retain employees as they assume it comes of course to running a concern. Although this is true to a grade, a company should ne’er undervalue the value of retaining employees or the how much it will be the company to replace them. Even losing a lower degree worker has important impact to the hard currency flow when your history for questioning people to replace that individual every bit good as the cost of preparation, all the piece losing productiveness and therefore hard currency flow.

1.2 Statement of Problem

There is a high rate of employees altering occupations, this leads to an addition in outgo, as a consequence this leads to take down productiveness which affects production at assorted undertakings. Employee’s deficiency of grasp at work is a impulsive factor for them go forthing.

1.3 Aim

The survey will seek to inform and help building companies in understanding the job of non retaining staff and its cost deductions. It will besides supply ways of developing more practical keeping schemes.

1.4 Aims

Assorted aims include:

  • Investigating the causes
  • Determine means of maintaining employees
  • Determine cost to employer
  • Make a scheme for the building industry

Chapter 2Literature Review

The primary issue for South African companies is happening good people with the right preparation and instruction and being able to retain them. If companies want their concern to boom engaging the best employees has become a critical issue. The challenge for proprietors is to beginning, attract and retain the right employees ( Unicorn HRO )

Merely 15 old ages ago, invariably traveling from one occupation to another was a foreign construct in South Africa. Peoples use to pass more than 25 old ages at the same company, sometimes even making the same occupation. Timess have now changed, with new engineering people have entree to information they ne’er had before, right at their fingertips. This new found consciousness of other possible success has led to a behavior being formed, normally known as “job hopping” . Job hoppers are people who invariably jump from one occupation to another in short periods of times. There is a negative intension associated with occupation skiping as employers think these people do non hold what it takes to follow through with their occupations. They believe their behavior is seen as irresponsible and shows a deficiency of committedness and trueness. This becomes a liability to the company ( Trunks, 2008 ) ( Nkomo, 2010 ) .

2.1 Reasons for Employees Leaving

Harmonizing to PSP Metrics ( n.d. ) a study carried out by Gallup on 100,000 employees in different administrations resulted in them happening common grounds as to why employees chose to go forth their current companies. These included:

  • There was a deficiency of regard for direction.
  • Their occupation caused unnecessarily high degrees of emphasis.
  • There was a deficiency of a challenge at work, taking to their occupation going mundane and drilling.
  • A hapless working environment
  • A deficiency of communicating refering information

Most employers in the current working environment complain that their employees are no longer motivated to work, nevertheless it is normally the antonym which is true. The job can lie in one of the above mentioned countries. Money used to be a major factor when choosing to remain with your company or go forth, but that is no longer the instance. Most, if non all employees today want to experience that their work makes a difference in the bigger strategy ( Nkomo, 2010 ) .

2.1.1 A Bad Working Environment

Working in a bad or toxic environment is a major factor in employees go forthing and usually contributes to the other factors, a bad working environment non merely leads to resent towards your occupation but can besides do serious wellness deductions.

Salpeter ( 2013 ) place a few marks that indicate a toxic work environment.

  • Your foreman is a bully. When a leaders invariably abuses and berates employees and no 1 stands up to him.
  • Colleagues V. Colleagues. It becomes a really uncomfortable working environment when workers who are peers harass each other and there are no effects.
  • Person taking recognition for your work. This can go extremely frustrating and can even take to you losing out on wagess and even a possible rise.
  • Making other peoples work. This becomes extremely frustrating when it is non recognised by senior direction and the individual whose work you’ve done is non reprimanded.

2.2 Cost of non Retaining Employees

Surveies have shown that the cost to replace an employee can run between 30-50 % of the employee’s one-year wage. 150 % for mid-level employees and for a higher degree employee, the entire cost of turnover can make every bit high as 400 % of the employee’s one-year wage ( Blake, 2006 )

When you wonder why the cost is so high, you have to factor in what you have already invested in that individual i.e. salary, preparation, clip etc. Now factor in the costs of engaging person to replace them i.e. questioning appliers and the cost of developing them, all this while losing productiveness and therefore money ( Unicorn HRO, n.d. ) .

An employee go forthing besides affects other employees, particularly if that individual has been with the company for a figure of old ages. The morale of fellow employees bead and their productiveness follows. An full section may hold to set to an employee go forthing and so re adjust to an employee coming in ; this once more affects productiveness ( Unicorn HRO, n.d. )


2.3 Retention Schemes

A basic regulation to success is that if you want your concern to thrive, you have to put in it. In order to win the best investing you can do is your employees. Employee turnover can go really dearly-won to an employee, particularly if you have invested in preparation and development schemes for that individual. Retaining employees through keeping schemes becomes of import ( Unicorn HRO, n.d. ) .

The first measure in retaining your employees is being able to track keeping, if you can’t mensurate it you won’t cognize how much it need to better. If you know how good each section is pull offing, you’ll know who needs betterments. Each section should hold a senior supervisor, a good senior supervisor can be really important to retaining your employees. Steven Miranda ( n.d. ) states “Employees don’t quit their occupations, they quit their managers” . Most employees’ primary relationship is with their senior supervisors, and this can straight find whether a individual stays or non. Regular meetings should be held to find ways of doing that relationship a better 1. ( Conerly, 2013 ) .

The 2nd measure will be making and keeping a good working environment, that non merely retains employees but attracts them every bit good, assisting them turn. A good working environment can eliminate many jobs taking to employees go forthing their companies. When seeking to turn to the current working environment you can measure 3 major facets refering to the work topographic point. Harmonizing to Irwin ( 2011 ) :

  • The moralss and values on which the company instils
  • Policies and actions used to turn those values into every twenty-four hours workings
  • The physical environment that the employees work in

When looking at moralss and values. It is of import to put an illustration to the employees. They will look for this leading and act consequently. There is no point in behaving, amorally or unethically and so move surprised when employees start acting the same manner.

A bad working environment is likely the biggest factor in employees go forthing and the ability to command the work topographic point and do it better will work out in the long tally. There are assorted methods with which you can carry through this.

  1. Feedback

When employees don’t receive feedback from their employees they tend to worry that they are non making a proper occupation or they think no 1 cares so they begin to slack. This can be avoided by holding regular meetings with your employees to measure their work. Positive support is cardinal. Alternatively of invariably indicating out what is incorrect, indicate out ways that the individual can better on their failings. This makes it easier for employees to talk to directors about certain jobs they have ( WaspBuzz n.d. ) .

  1. Office Hourss

Different people work at their optimal degree at different times of the twenty-four hours. Some people may be done with their work at 12 p.m. while others may merely make their best work after 10 ante meridiem leting employees flexible on the job hours while puting those ends to accomplish in those hours will take to an addition in production and hence income. Honoring your employees with clip alternatively of money is ever welcome and sometimes more apprehended ( WaspBuzz n.d. ) .

  1. In The Loop

Equally far as you can, maintain employees in the cringle about the concern without unwraping any confidential issues. This makes them experience that the occupation they do is of import and straight affects the company. It gives employees a sense of answerability and pushes them to work harder to better the company.

The 3rd measure is to inquire employees why they work for you. Two things come from this. First the employee reassures themselves as to why they work for you and in bend the employer additions a better apprehension of what draws people to your organisation. These grounds become critical information as to why people are working for your company and if you are directing the right image out. This information besides helps when recruiting, if the individual values the grounds other people work at that place so they would likely be a good tantrum for your company ( Irwin, 2011 )

Once you have established why people want to work for your company, the following inquiry is what the company can make in order to do things better as there is ever room for betterment. If done in the right manner the company may detect great ways for non merely bettering the conditions your employees work in but besides other parts of your concern.

Employee keeping schemes should assist convey a sense of household to the concern topographic point. Even though households do hold internal struggle and don’t ever agree, they tend to work it out. This bond will see employees lodge together through tough times and rejoice in the great times. They will assist to back up each other and will assist each other grow. If this sense of household is achieved, it becomes a batch harder to go forth than go forthing someplace you merely travel to work.

Chapter 3Research Methodology

3.1 The Approach

The attack to this research is chiefly a qualitative attack, based on assorted articles and instance surveies. The survey used this to concentrate on the most common jobs when faced by companies to retain their employees. The survey besides used a minor secondary quantitative attack where a study of 10 people in 2 companies was taken to estimate the relevancy of the articles the research was based on.

3.2 Restrictions

This survey was limited by the below reference:

  • Scheduling. This became a major issue when people could non happen the clip to partake in the study or keep interviews.
  • Confidentiality. Many people did non desire to take portion in the study as they were afraid the information would be used to victimize them.

Chapter 4Consequences and Discussion

4.1 Causes of changeless occupation alteration

Local employers are neglecting to pull, retain and develop their employees. Some of the cardinal findings of the survey include organisations implementing and reacting to public presentation reappraisals ill, despite holding proud and willing employees as a consequence employees move from one company to the following, companies fail to put sufficiently in accomplishments.

Many employees prefer a better Woking environment. This will increase working dealingss between fellow employees and between employees and their directors. This will ensue in more productiveness and income.

4.2 Costss to the Employer

Employees traveling from one organisation to the following cause the company to lose its initial investing and put more into happening replacings. These actions are doing a important impact on company ‘s morale, productiveness and overall net income.

4.3 Survey Conducted

The Charts below represent the replies to assorted inquiries asked on the study.

.Figure 1: Question 1

Figure 2: Question 2

Figure 3: Question 3

Figure 4: Question 4

Figure 5: Question 5

Figure 6: Question 6

Figure 7: Question 7

Figure 8: Question 8

Figure 9: Question 9

Figure 10: Question 10

Chapter 5Decisions and Recommendations

Retaining good employees is of import to a company’s long term success. Constantly altering employee’s starts to impact the efficiency of the company doing a lower criterion of work, in bend doing low productiveness and low income.

The cost of replacing, enrolling and developing new employees becomes a major issue and can impact the fiscal standing of the company. It is merely unaffordable to disregard an employee keeping job.

There are many ways to to control this job:

  • Companies need to demo their employees that they care about them. Taking personal involvements into history and developing their staff.
  • Creation of good, meaningful and ambitious plants so that the workplace does non go deadening or mundane.
  • Make a good working environment for employees. Happy employees make a happy company

Having a keeping program is a must for a company. Investing in this will salvage you a batch more in the hereafter.

Companies must follow a civilization where they value their employees, and where personal addition is aligned with concern addition. Companies must allow travel of old fashioned recruiting methods and utilize modern methods in order to retain their employees.

Chapter 7: Mentions

AOL Jobs: “12 marks you are working in a toxic environment”

hypertext transfer protocol: // 2013 )

Forbes: “Quits are up: 7 employee keeping schemes your company must have”

hypertext transfer protocol: // ( 2013 )

Mondaq: “Five top employee keeping strategies”

hypertext transfer protocol: // 2011 )

Unicorn HRO: “Effective tools for retaining employees – what you should know”

hypertext transfer protocol: // — what-you-should-know( n.d. )

Wasp/Buzz: “6 wickednesss of office emphasis: How to make a better working environment”

hypertext transfer protocol: // n.d. )


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