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Abstract

Purpose:

Retaining employees becomes challenging for employers, especially when experiencing a high turnover rate. Organisations put substantial effort into retaining their employees. The purpose of this article is to shed light on the contribution of high-performance human resource practices (HPHRP) in building employees’ intention to remain (IR) with the organisation for a longer period.

Design/Methodology/Approach:

The study samples 238 employees from the Indian construction sector to empirically test and conclude the research. The authors first validated the data collected through a confirmatory factor analysis (CFA) approach and then performed structural equation modelling (SEM) to test the hypothesised relationship.

Findings:

The results suggest that employers implement the HPHRP, especially internal career opportunities, incentives and compensation, and participation and communication practices that stimulate a positive intention among the construction industry employees to stay with the current organisation for a longer period.

Research Limitations/Implications:

The study is limited to the Indian construction sector. The scholars are encouraged to study more dimensions of HPHRP and empirically test their relationship with other employee performance and organisational performance measures.

Practical Implications:

To reduce the unwanted cost generated due to employee turnover, it is necessary that employers understand the role of HPHRP and implement it in a manner that signals a positive feeling within the employee, and thus, they wish to keep working with their current organisation.

Originality/Value:

The article provides empirical evidence of the relationship between HPRHP and IR. Earlier studies were conducted in other geographical regions and organisational settings. Thus, this study is the first to empirically test the direct relationship of HPRHP and IR on construction industry employees in India.

JEL Classification: M31, L81, C78, M50, J63, L74

Keywords

High-performance human resource practices India intention to remain construction sector structural equation modelling

Introduction

The supportive role of human resources (HR) practices in achieving organisational performance is evident. Earlier studies have shown great efforts to identify and empirically analyse this relationship and thus concluded the positive role that HR practices play in organisations to increase their performance (Giauque et al., 2013; Kaur & Kaur, 2023; Tabiu, 2019). The strategic human resource management (SHRM) field has seen an increase in attention from researchers over the past few years. Madera et al. (2017) defined SHRM as ‘the mechanism that connects the functioning of HR with the organisational performance’. The SHRM literature has shown the importance of bundles of HR practices over individual HR practices and their impact on organisational performance (Karki & Hadikusumo, 2023). The reason that has drawn the focus of practitioners and scholars to this area is the underlying mechanism that connects the two critical dimensions of this model, that is, bundles of HR practices and organisational performance. The former, being the set of HR practices, has positively or negatively influenced the various outcomes of the latter, directly or indirectly. These bundles of HR practices are often referred to as high-performance human resource practices (HPHRP), high involvement human resource (HR) practices, high-performance work systems, or commitment-based HR practices (Zacharatos et al., 2005) and are used interchangeably. The HPHRP is described as bundles of interconnected HR practices designed to fulfil organisational purpose (Kehoe & Wright, 2013) and provide desirable organisational outcomes (Tabiu, 2019). The mechanism often termed as ‘black-box’ explaining the influence of HR practices on organisational performance remains unclear.

The survival of any organisation depends on its performance and competitive advantage in the market (Gahlawat & Kundu, 2019). An employee is an important asset to an organisation that helps it accomplish its organisational goals. To exist and grow, HR competencies and capabilities are a must for organisations (Jyoti & Rani, 2019). One of the important issues employers are facing today is employee retention (Fabi et al., 2015). In this context, HPHRPs, which include comprehensive training programmes, performance-based incentives, employee involvement initiatives, career development planning, and strategic recruitment, have gained increasing attention as tools to enhance employee retention. By fostering a more engaging, supportive, and growth-oriented work environment, HPHRPs can help construction firms reduce turnover, enhance productivity, and build a sustainable competitive advantage (Yu et al., 2022).

The implementation and effects of HPHRPs in the construction industry are still little understood, despite their demonstrated efficacy in other sectors, particularly in developing nations, where labour volatility is more common (Omer et al., 2025). Project managers and HR strategists who want to retain qualified workers and guarantee long-term organisational success must comprehend how these techniques can be modified to fit the particular dynamics of construction work settings. This study looks at how HPHRPs are used in the construction industry and assesses how well they work to increase staff retention. By providing data-driven insights and practical suggestions for stakeholders, it seeks to close the gap between the theory of HR management and the practices of the construction industry.

Given India’s diverse and rapidly expanding construction sector, which operates with a heterogeneous workforce and frequently faces retention challenges, this study is globally significant. It presents India as a representative case of how emerging economies can deploy HPHRPs to improve retention outcomes, offering valuable lessons for multinational firms and construction organisations worldwide.

Moreover, this research contributes to the existing body of knowledge by addressing specific research gaps in earlier studies, which include:

A predominant focus on negative turnover intentions, without adequate attention to employees’ positive intention to remain (IR).

Over-reliance on mediated models, where HPHRPs impact turnover intention through indirect factors, limiting the understanding of direct relationships.

Limited empirical studies directly linking HPHRPs with IR, with only two found one in Malaysia and another in the Indian IT industry.

Insufficient depth in measurement approaches, as one of the Indian studies used a single-item scale to assess employee IR, which undermines reliability and richness of data.

Based on the gaps identified, the current study is guided by the following research questions:

How do HPHRPs directly influence employees’ IR in the construction sector?

Which specific components of HPHRPs (e.g., training, performance appraisal, employee involvement) most significantly contribute to employee retention in construction firms?

How can construction firms in emerging economies like India adapt and implement HPHRPs to foster long-term workforce stability?

What are the contextual challenges in applying HPHRPs in the construction sector, and how can these be strategically overcome?

Literature Review and Hypothesis Development

The authors studied the literature related to HPHRP and their effective results for the organisations. The hypotheses were developed for further analysis. The novel contribution of this study is its attempt to analyse, to a great extent, the HPHRP on employees’ IR working in the construction industry in India.

High-performance Human Resource Practices

Prieto and Perez-Santana (2014) defined HPHRP as a bundle of interrelated HR management practices that simultaneously perform to serve the organisational goals. Jaiswal and Tyagi (2020) stated that the HPHRP is a complementary set that includes three broad areas: HR practices, high employee involvement practices, and rewards and commitment practices. The scholars have studied various theories like expectancy theory, social exchange theory, organisational theory, resource-based view theory, behavioural response theory, human capital theory, and employee exchange theory concerning HPHRP (Singh et al., 2016). Considering the behavioural response theory, Singh et al. (2016) found that when employees have a positive perception of their employers and the organisation, they are more committed towards the organisation. The organisations use HR practices as a tool to generate particular employees’ behaviour and attitude (García-Chas et al., 2014). Hooi (2019) suggested that if a particular HR practice is implemented in the organisation in a specific manner, then it will ensure the desired organisational goals. Therefore, HPHRPs are aimed at delivering the desired employee and organisational outcomes to the firms (Agarwal, 2022).

Intention to Remain

The employee’s turnover intention is a big concern for the organisations. As it incurs a huge amount of cost to recruit and train a new candidate, the organisations wish to adopt certain measures that will help them to retain their employee and reduce their employee turnover rate every year. Uraon (2018) defined IR as ‘the willingness of an employee to stay in the organisation in the future for a long time based on his or her experience with that organisation’. According to Griffeth et al. (2000), the strongest and most consistent predictor of employees’ actual quit behaviour is the employee’s IR with the organisation. In the Indian context, the majority of the researchers studying IR have conducted their studies in the construction industry, as this industry experiences a high rate of employee turnover. Based on this assumption and the fact that the whole construction sector is also experiencing a high turnover rate, the authors in this study have chosen the construction sector for conducting this research.

HPHRP and IR

The cost and time associated with filling a vacant space for an employee in the organisation are issues for the employer (Kamble et al., 2024). To escape from this, employers should implement preventive measures that will retain employees with the organisation for the long term. Predicting HPHRP as an antecedent to IR provides direction for employers to enhance the behavioural intention of their employees to stay in the current organisation for a long duration. Johari et al. (2012), Macky and Boxall (2007), and Singh et al. (2016) concluded that with the implementation of HPHRP, the organisations can increase the behavioural IR of their employees. HPHRP reduces employee turnover and supports retention (Pichler et al., 2014). Wang and Huang (2023) concluded the role of HPHRP in reducing the turnover intention of teachers in universities and colleges in Chinese culture. Previous authors (Zhong et al., 2016) have studied the indirect relationship of HPHRP with IR, which is a shortcoming of their studies. Only a few authors have studied the direct relationship between individual HPHRP and IR, which was a limitation of their study. Keeping in mind that the impact of collective HPHRP and individual HPHRP could be different, the authors in this study have identified an important possible gap in the literature and have carried out their research based on this assumption. Singh et al. (2016) conducted the study in the Indian IT sector. The study of Johari et al. (2012) was limited to the manufacturing sector. Rai et al. (2019) conducted their study in private banks in India, where they studied only one HPHRP, that is, rewards for intention to stay. Hausknecht et al. (2009) concluded that extrinsic rewards and incentives have an impact on employees’ intention to stay in the organisation. The opportunities for finding career paths within the organisation have a positive impact on employees’ IR (Stein & Min, 2019). Providing training, rewards, and incentives to the employees increases their chances of staying in the organisation (Uraon, 2018). The study of Kehoe and Wright (2013) confirms the positive relationship of employment security, sensitive selection, and participation and communication with IR. Therefore, based on the literature, the present study proposes that there exists a positive relationship between HPHRP and IR, which can be hypothesised as follows:

H₁: HPHRP is positively related to IR.

The subsequent hypotheses are:

H_1a: Internal career opportunities are positively related to IR.

H_1b: Extensive training is positively related to IR.

H_1c: Employment security is positively related to IR.

H_1d: Participation and communication are positively related to IR.

H_1e: Sensitive selection is positively related to IR.

H_1f: Incentive compensation is positively related to IR.

Figure 1 represents the hypothesised model. The model shows the direct relationship between HPHRP and IR. The model aims to fulfil the current objective of this study, that is, to empirically investigate the impact of individual HPHRP on IR.

Figure 1.

Theoretical Framework.

Methodology

Research Setting: Construction Sector in India

The Indian construction industry is a vital component of the nation’s economy, contributing significantly to GDP and serving as a major source of employment across both urban and rural areas. As a rapidly growing and highly labour-intensive sector, construction is characterised by project-based work, temporary employment structures, and fluctuating workforce demands, and completing the project in the scheduled time requires overlapping of activities and increased manpower (Bharadwaj et al., 2019). These factors make employee retention a critical concern, as high turnover rates can lead to increased recruitment and training costs, delays in project delivery, and a loss of skilled labour (Bharadwaj et al., 2025). Among various sectors, the construction industry is particularly vulnerable to employee turnover, given its demanding working conditions, limited career progression, and lack of long-term job security (Rai et al., 2019; Uraon, 2018)

To address these challenges, construction firms need to implement targeted HR practices, especially HPHRPs, that can foster a sense of stability, engagement, and loyalty among employees. By enhancing employees’ IR, these practices can help reduce turnover and contribute to the overall performance and sustainability of construction organisations. The motivation for focusing this study on the construction sector stems from the urgent need to identify effective HR strategies to manage high attrition rates and promote long-term workforce retention in one of India’s most dynamic yet retention-challenged industries.

Sample and Procedure

The present study was conducted among employees working in various segments of the Indian construction industry, including civil engineering firms, real estate developers, infrastructure companies, and project management consultancies, by collecting the quantitative data with the help of a non-probability sampling technique (Dhivyadeepa, 2015). As per the availability of the construction sector workforce, the convenience of the researchers, and also considering the economic conditions, the convenience sampling method was adopted for data collection. The demographic composition of the sample reveals that 27.7% of the respondents were female and 72.3% were male, reflecting the traditionally male-dominated nature of the construction workforce. In terms of age distribution, 68.5% of respondents fell within the 20–30 years age group, 24.8% within the 30–40 years bracket, and the remaining 6.7% were above 40 years.

Regarding professional experience, a significant portion of the participants (72.7%) reported having 0–5 years of work experience in the construction sector, followed by 16.38% with 5–10 years and 10.9% with 10–15 years of industry experience. The educational qualifications of the respondents included 76.1% with undergraduate degrees and 23.9% with postgraduate qualifications, predominantly in fields such as civil engineering, construction management, and project planning.

A structured survey questionnaire served as the primary data collection tool. Respondents were identified using a combination of professional construction directories and industry networks accessed through the authors’ professional affiliations. The questionnaire was administered online and distributed to a target sample of 325 employees currently working in construction-related organisations across India. The instrument comprised two sections:

Section A collected demographic data (age, gender, experience, and educational background).

Section B included 26 items, of which 22 items assessed HPHRPs and 4 items measured the respondents’ IR with their current organisation. The respondent’s responses were recorded with the help of a five-point Likert Scale, ranging from 5 (strongly agree) to 1 (strongly disagree).

Out of the total questionnaires distributed, 249 responses were received, and 238 were deemed valid for analysis after excluding 11 incomplete submissions. This yielded a usable response rate of 73.23%, which is considered robust for empirical studies in organisational research. The overall sampling data is shown in Table 1.

Table 1.

Demographic Profile of Respondents in the Indian Construction Sector.

Demographic Variable	Category	Frequency (n)	%
Gender	Male	172	72.30
Gender	Female	66	27.70
Age group	20–30 years	163	68.50
	30–40 years	59	24.80
	Above 40 years	16	6.70
Work experience	0–5 years	173	72.70
	5–10 years	39	16.38
	10–15 years	26	10.90
Educational qualification	Graduation	181	76.10
Educational qualification	Post-graduation	57	23.90
Total questionnaires sent		325
Responses received		249
Valid responses used		238
Response rate			73.23

Data Analysis Method

The data collected was then used for further analysis. The confirmatory factor analysis (CFA) was conducted to test the construct reliability and validity of the scale. In the second stage, the relationship between the HPHRP and IR was evaluated using structural equation modelling (SEM). SPSS 20 version and AMOS version 22 were used for the data analysis.

Results

Common Method Variance

For this purpose, the authors used Harman’s single-factor test to test CMV for all the variables. The extraction method used was principal axis factoring without any rotation, and the extraction was limited to one factor. The result shows that four factors have eigenvalues greater than 1 and explained 56.620% of the variance. The single-factor explains 39.643% of the variance, which was below 50%. Therefore, the data confirm the absence of CMV.

Testing the Measurement Model

In the first step of data analysis, CFA was done. The results show a good model fit. The fit indices of the model are within the prescribed limit, that is, χ² (df) 371.584 (278); GFI = 0.895; AGFI = 0.867; CFI = 0.967; CMIN/DF = 1.337, RMSEA = 0.038. The results from the CFA confirm the validity of the instrument for HPHRP and IR in the context of the Indian construction sector (Bajpai, 2011). Therefore, the variables were used for further analysis of the hypothesis. The composite reliability and average variance extracted for all the factors of HPHRP and IR are above 0.6 and 0.5, respectively, and are shown in Table 2.

Table 2.

Composite Reliability and Average Variance Extracted for HPHRP and IR.

S No.	Factors	Composite Reliability	Average Variance Extracted
High-performance human resource practices factors
1.	Internal career opportunities	0.668	0.501
2.	Extensive training	0.810	0.516
3.	Employment security	0.753	0.605
4.	Participation and communication	0.820	0.532
5.	Sensitive selection	0.841	0.515
6.	Incentive compensation	0.834	0.503
Intention to remain with the organisation		0.846	0.503

Testing the Hypothesis

The hypotheses were tested using SEM. The results obtained from the analysis provide evidence that the model fitted well. The obtained value for χ² (df) 377.510 (278); GFI = 0.893; AGFI = 0.865; CFI = 0.965; CMIN/DF = 1.358, RMSEA = 0.039 shows that the model is a good fit. The results indicate that all six hypotheses are supported because there is a significant relationship between the six HPHRP and IR. Figure 2 shows the path diagram of the SEM results. Table 3 shows the results of the hypothesis testing. The results show: internal career opportunities and IR (β = 0.303, p < .001) supporting H_1a; extensive training and IR (β = 0.077, p < .001) supporting H_1b; employment security and IR (β = 0.058, p < .001) supporting H_1c; participation and communication, and IR (β = 0.193, p < .001) supporting H_1d; sensitive selection and IR (β = 0.092, p < .001) supporting H_1e; incentive compensation and IR (β = 0.235, p < .001) supporting H_1f. Thus, the results have shown the direct impact of the six HPHRP on IR (Hair, 2006). The results confirm that when an organisation practices HPHRP and promotes training, participation, communication, provides job security, career opportunities, and incentives to their employees, and wisely makes the selection of candidates, then the organisation is successful in enhancing their employees’ IR for a long period.

Figure 2.

Structural Model Results (Standardised Coefficients).

Table 3.

Results of Hypothesis Testing.

No	Hypothesis	Path Coefficient	SE	t-value	p Value	Findings
H _1a	ICO→IR	0.303	0.126	2.406	<.001	Supported
H _1b	ET→IR	0.077	0.104	0.744	<.001	Supported
H _1c	ES→IR	0.058	0.111	0.525	<.001	Supported
H _1d	PC→IR	0.193	0.186	1.039	<.001	Supported
H _1e	SS→IR	0.092	0.206	0.446	<.001	Supported
H _1f	IC→IR	0.235	0.122	1.933	<.001	Supported

Note: ICO = Internal career opportunities; ET = Extensive training; ES = Employment security; PC = Participation and communication; SS = Sensitive selection; IC = Incentive compensation; IR = Intention to remain.

Discussion

Highlighting the contribution made by researchers towards HPHRP and IR, this study brings to the notice of the readers the research gaps identified in the literature. The primary purpose of this research was to examine the relationship between HPHRP and employees’ IR with the construction organisation. The logic behind the hypothesis was that the HPHRP implemented by the organisations helps employers increase the chances of their employees staying with the organisation for a longer period and not considering switching to another organisation. Unlike previous studies, the present study aims to empirically test the direct relationship between HPHRP and IR. Researchers in other countries have conducted little research on HPHRP and IR, but their impact on the Indian construction sector and implications remain ambiguous.

It can be noted from the results that internal career opportunities, extensive training, employment security, participation and communication, sensitive selection, and incentive compensation practices have a significant positive impact on employees’ IR. Results of testing the H₁ add to the literature that internal career opportunities have a significant positive relationship with IR (Goyal & Patwardhan, 2021). From the H₂ testing, employee training helps in increasing the employee’s IR, as shown in previous studies (Picchio & Van Ours, 2013). The H₃ testing results show that employment security is also one of the important HPHRPs that positively impacts IR (Karatepe & Vatankhah, 2014). The testing of H₄ provided evidence for the assumption that participation and communication practices in an organisation help in increasing the IR. These results were aligned with the findings of previous studies (Singh et al., 2016). The results from H₅ testing showed the positive influence of sensitive selection on IR (Kehoe & Wright, 2013). The testing of H₆ provided results that show the positive impact of incentives and compensation practices on the employee’s IR (Johari et al., 2012). The examination of the direct relationship of individual HPHRP with the IR has added knowledge to the existing literature about the role that these individual HPHRP play and to what extent they help organisations increase employees’ likelihood of staying with them and reduce the employee turnover rate. This analysis was not possible with the previous studies of other authors because they provided the collective impact of HPHRP on IR.

Implications

This study contributes significantly to the theoretical and practical understanding of HR management within the construction sector by empirically validating the positive relationship between HPHRPs and employees’ IR with their organisations, an area previously underexplored in the context of emerging economies and project-based industries. Unlike prior studies that broadly examined turnover intentions, this research isolates and evaluates the direct influence of individual HPHRP components on retention outcomes, thereby uncovering practices that may exert negligible or even adverse effects on IR. Such differentiation is critical for developing optimised bundles of HR practices tailored to the construction industry’s dynamic and labour-intensive environment. From a practical standpoint, the findings offer actionable insights for construction industry practitioners and policymakers by emphasising the strategic implementation of HPHRPs across the employee lifecycle from recruitment and training to performance appraisal, incentive distribution, and career development. These practices collectively foster a culture of trust, engagement, and perceived organisational support, which are essential in signalling to employees that their contributions are valued and their welfare is prioritised. In an industry frequently challenged by high attrition and talent poaching, especially in the face of intensifying competition and project-based contractual employment, the integration of well-structured HPHRPs serves as a proactive mechanism to enhance employee loyalty, reduce turnover rates, and align HR strategy with broader organisational goals.

Limitations and Future Direction

Although the findings of the current study provide a valuable contribution to researchers and employers, the study still holds some limitations that can be seen as a direction for future research. First, the study is limited to the construction sector in India. It can be assumed that, unlike the construction sector, the other industries in India may experience a different relationship between these independent and dependent variables. Second, a longitudinal study in this area may provide some new insights, as this study is limited to a cross-sectional study. The scholars are also encouraged to study more dimensions of HPHRP and empirically test their relationship with other employee performance measures.

Conclusion

The findings of this study demonstrate that the strategic implementation of HPHRPs, including employee participation and communication, internal career opportunities, training, performance-based incentives, selective recruitment, and employment security, can significantly enhance employee retention in the construction industry. These practices collectively foster greater employee loyalty, reduce turnover rates, and minimise the high costs associated with workforce replacement. By aligning HR strategies with organisational goals, construction firms can boost workforce commitment and ultimately improve project performance and productivity. Although the study draws insights from the construction sector, the bundled nature of HPHRPs suggests that similar retention outcomes are applicable across sectors, including construction, where cohesive and strategically integrated HR practices are critical for sustaining a stable and skilled workforce in a highly competitive and dynamic environment.

Footnotes

Data Availability

The data supporting this study’s findings are available from the corresponding author upon reasonable request.

Declaration of Conflicting Interests

The authors declared no potential conflicts of interest with respect to the research, authorship and/or publication of this article.

Funding

The authors received no financial support for the research, authorship and/or publication of this article.

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The Role of High-performance Work Systems in Sustaining Employee Retention in the Construction Industry

Abstract

Purpose:

Design/Methodology/Approach:

Findings:

Research Limitations/Implications:

Practical Implications:

Originality/Value:

Keywords

Introduction

Literature Review and Hypothesis Development

High-performance Human Resource Practices

Intention to Remain

HPHRP and IR

Theoretical Framework.

Methodology

Research Setting: Construction Sector in India

Sample and Procedure

Data Analysis Method

Results

Common Method Variance

Testing the Measurement Model

Testing the Hypothesis

Structural Model Results (Standardised Coefficients).

Discussion

Implications

Limitations and Future Direction

Conclusion

Footnotes

Data Availability

Declaration of Conflicting Interests

Funding

References