Fairness in human resource management practices and engineers' intention to stay in Indian construction firms
| DOI | https://doi.org/10.1108/ER-07-2021-0308 |
| Published date | 30 August 2022 |
| Date | 30 August 2022 |
| Pages | 156-171 |
| Subject Matter | HR & organizational behaviour,Industrial/labour relations,Employment law |
| Author | M. Hazeen Fathima,C. Umarani |
Fairness in human resource
management practices and
engineers’intention to stay
in Indian construction firms
M. Hazeen Fathima and C. Umarani
Department of Civil Engineering, Anna University, CEG Campus, Chennai, India
Abstract
Purpose –More attention should be paid to human resource management practices, as they play a vital role in
the retention of the skilled workforce for improved competitive advantage and reduced skill shortage. This
study aims to examine the impact of engineers’satisfaction regarding fairness in key human resource
management practices such as performance management, compensation and pay, and employee relations on
their intention to stay in Indian construction firms.
Design/methodology/approach –This research was undertaken using a questionnaire survey conducted
among 230 engineers working in Indian construction firms. Data collection was done by using self-
administered questionnaires. The quantitative analysis of the collected data was carried out. The constructs
involved in the study were validated using factor analysis. The correlation and regression analyses were used
to examine the relationship between engineers’satisfaction with fairness in human resource practices and their
intention to stay.
Findings –Results showed that satisfaction with fairness in human resource practices, such as performance
management and employee relations are positively related to engineers’intention to stay, whereas satisfaction
with fairness in employee relation practices highly predicts engineers’intention to stay.
Originality/value –This study adds to the body of knowledge by examining the impact of engineers’
satisfaction with fairness in human resource practices on their intention to stay in the Indian construction
sector, which is an under-researched area. Satisfaction with fairness in employee relation practices is identified
as the strongest predictor of engineers’intention to stay. The finding of the research could help construction
companies develop human resource practices and policies to promote the retention of construction
professionals, particularly engineers, who work for them.
Keywords Employee turnover, Skill shortage, Human resource management, Fairness, Performance
appraisal, Intention to stay
Paper type Research paper
Introduction
Human resource is one of the critical aspects that decide the success and growth of an
organization. Attraction and retention of human resources are essential for gaining an
organization’s competitive advantage and sustainable growth (Pfeffer, 1994). This is
particularly true in terms of labor-intensive sectors like construction. The construction
industry is one of the largest employing sectors in the world; it depends primarily on human
capital for its effective functioning and successful completion of construction projects
(Mathar et al., 2020;Sinesilassie et al., 2019). High employee turnover is one of the important
problems faced by construction organizations worldwide (Kim et al., 2020). A high turnover
rate can lead to poor project performance, delay and reduced profit (Kim et al., 2020;Zidane
and Andersen, 2018). More time and cost loss occur because of recruitment, training and
management of new employees (Glebbeek and Bax, 2004). Besides that, the knowledge and
expertise of old employees might be lost. It is found that adopting the right human resource
ER
45,1
156
The study is financially supported by the Maulana Azad scholarship for minority students, funded by
University Grants Commission, India.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0142-5455.htm
Received 10 July 2021
Revised 6 April 2022
15 July 2022
1 August 2022
Accepted 2 August 2022
Employee Relations: The
International Journal
Vol. 45 No. 1, 2023
pp. 156-171
© Emerald Publishing Limited
0142-5455
DOI 10.1108/ER-07-2021-0308
practices significantly reduces employee turnover intention (Guthrie, 2001). Implementing
effective human resource practices is also associated with improved employee productivity
and performance (Wilkinson et al., 2012). It is, therefore, necessary to identify the human
resource practices that have a significant impact on employee retention in the construction
industry.
Fairness is identified as one of the important aspects of human resource practices essential
for improving employee well-being and retention in an organization (Colquitt et al., 2001;
Perreira et al., 2018;Tetteh et al., 2019). Employees perceive fairness by comparing their ratio
of inputs and outcomes to that of relevant referable others (Adams, 1965). The comparison
may be normally made based on pay, rewards and benefits, recognition, promotion
opportunities, openness in communication and fairness in employee relations. It is agreed
that employees who perceive fairness in human resource practices exhibit positive work
attitudes such as satisfaction, loyalty, commitment and organizational citizenship behavior,
which subsequently increases their intention to stay, whereas lack of fairness may result in
absenteeism, counterproductive work behavior and turnover (Addai et al., 2018;Colquitt et al.,
2001;Perreira et al., 2018).
Although studies examining the impact of fairness in human resource practices on
employee intention to stay/leave have been conducted across different settings, such as
information technology, manufacturing, health services, etc. (Addai et al., 2018;Gupta and
Singh, 2018;Nawaz and Pangil, 2016;Perreira et al., 2018;Rubel and Kee, 2015;Tetteh et al.,
2019), studies on construction sector are scarce. The results obtained from others are not
generalizable to the construction sector. Its industrial characteristics including a complex
project-based work environment, involvement of a diverse workforce, and adoption of
flexible work arrangements such as subcontracting, etc. make construction different from
others. Moreover, the construction sector is currently facing workforce issues such as skill
shortage and high employee turnover. Considering these aspects, it is essential to examine the
impact of fairness in human resource practices on employees’intention to stay in the
construction sector.
Similarly, studies on fairness in human resource practices and their association with
individual and organizational outcomes have been mostly investigated in western and
European countries, studies focusing on developing countries like India are very few (Nawaz
and Pangil, 2016;Rubel and Kee, 2015;Tetteh et al., 2019). India is distinct from other
countries because of its dynamic socio-economic environment, increased foreign investment,
workforce diversity and collectivistic culture (Budhwar and Varma, 2010;Rathi and Lee,
2017). Besides, the construction sector is one of the largest employing sectors in India and it
contributes a significant proportion to the country’s economy. Several other sectors in India
depend on the construction sector for their growth and development (Anandh and
Gunasekaran, 2019;Anandh et al., 2020;Selvaraj et al., 2012). The shortage of skilled
engineers has been identified as one of the major risk factors affecting the growth and
advancement of the Indian construction sector (Chen et al., 2014).
Skilled professionals, especially Engineers are more important to any construction
organization, as they play a major role in the design, construction and maintenance of new
infrastructure facilities and rehabilitation of old structures. They can understand and
interpret the technological advancements in the construction industry and use them to meet
the current project needs. Rapid changes in the construction business increase global
competition, complexity in construction projects and ever-changing client needs require
skilled engineers to meet the changing demands (Ahmed and Sobuz, 2020). Hence, there is a
need to attract and retain engineers to meet the current skill shortage and future workforce
needs. To the best of the authors’knowledge, no studies in the Indian construction sector have
examined the influence of fairness in human resource practices on engineers’intention to
stay. So, the present study aims to address these gaps in the research by investigating the
Fairness in
HRM practices
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