The effect of Human Resource Management practices on employee retention in the Ghanaian Construction Industry

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Studies have shown that the construction industry is considered an economic backbone and a major contributor of Gross Domestic Product (GDP) in both developed and developing countries. Improper human resource management practices have led to high turn-over rates especially within the construction industry. The study aimed at determining the most important human resource management practices, the most frequent human resource management practices and which human resource management practices influenced job retention. The study involved 60 employees from class D1 and D2 construction companies in Ghana. The study involved mainly the use of primary data collected through a survey which used questionnaire to obtain the data. The result of the study provides empirical support for the importance of recruitment and selection, training and development, human relationship, employee communication “health, safety and warfare”, recognition and reward, compensation and incentives and performance appraisal on “employee retention” in the construction industry of Ghana. Thirteen human resource management practices were found to be very important in influencing employee retention within the construction industry in Ghana. These are • good recruitment advertisement, • accuracy of person specification, • management encouraging employee counseling, • opportunity to participate in the policies which guide and rule working lives, • opportunity for employees to air their views, • appointment of safety officer, provision of first aid, canteen facilities, management bearing full treatment cost of injuries sustained at the workplace, • praise and appreciation of good work done, • fairness of pay, • payment of tools allowances, • job security and competencies based or skill based pay.
A Thesis submitted to the School of Graduate Studies, Kwame Nkrumah University of Science and Technology, Kumasi, in partial fulfilment of the requirements for the Degree of Master of Science.