Labour shortages to have big impact on builder profitability: Experts

Labour shortfall in the industry is acute, and developers are learning to take big steps toward solving it. But, is it enough?

Shankar Mishra, a masonry worker at a construction site in Bangalore, was one of those unfortunate workers who had to reverse-migrate in the wake of the Covid 19 pandemic at the start of 2020. He had all the reasons to believe that his career as a mason was over.  He was equally relieved and surprised when the developer’s construction manager asked him to join back work while offering him a flight ticket.

“I had never even imagined flying by air. It was a dream come true … Ever since I came back to work, I can feel big changes in the working conditions and overall ambience over here. I am now being paid Rs 100 extra per day and one-time food at the construction site,” says Mishra.

Mishra’s experience is not a case in isolation.  Workforce shortage in India’s big cities is real, and the sector is face to face with this grim reality. It is trying its best to check reverse migration as a precautionary measure. Some developers with projects nearing completion have in fact gone ahead to exhaust their CSR budget for the labourers’ benefit. Will such short-term measures be enough to meet the long-term challenge of labour shortage?

 

Working towards a cause

Stakeholders say a lot has been done for labourer welfare since the pandemic, from vaccination to food distribution. Vaccines were provided to them free of cost, and safety equipment, including masks, were made available. Labourer camps were sanitised, and oxygen cylinders were kept on standby.  Some builders also cut down the risk of infection spread by limiting their movement and organizing counselling and wellness sessions. But the question is to what extent these measures really helped the cause of the sector.

 

The cause and its effect

K Satyanarayana, MD, Starworth Infrastructure and Construction, says that over the past three years, several measures to retain workers have been put in place by developers to deal with the labour shortage. Both during and after the worst of the pandemic, workers are being given more facilities and financial assistance in order to continue with their work. During the Covid-19, developers worked with state governments to distribute food kits, booster kits, and first-aid kits. Monetary benefits of up to Rs 5,000 per worker were also doled out.

“As developers/contractors, we ensured the creation of recreation facilities, good ventilation for worker camps, daily fogging operations and oxygen concentrators at the site. We also tied up with hospitals providing Covid-19 treatment, and put up isolation chambers onsite. Regular health check-ups, better living facilities have helped increase the stickiness among workers. The sector needs to train a large number of unskilled workers which will draw unemployed youth to construction sites. Upskilling is a big pull factor that also helps in developing a sense of belonging among them,” says Satyanarayana.

Sarveshaa SB, MD, BHADRA Group, believes that addressing the labour deficit will necessitate a concerted effort from all industry stakeholders. The industry needs to prioritise worker welfare, invest in upskilling and training programmes, improve working conditions, invest in the use of technology and collaborate to understand labour-related issues a little better. By adopting these measures, the industry will be able to develop a sustainable workforce that can adjust to changing industry demands and contribute to the sector’s growth and development.

“The industry can effectively manage labour scarcity through a variety of strategies. Participating in training and upskilling programmes that enable employees to acquire the necessary skills for the job is one solution. This can assist in attracting additional workers to the industry and fostering a more competent and adaptable workforce. In addition to providing safe and hygienic working conditions, access to medical facilities, and equitable wages, the industry can focus on improving the working conditions of labourers. This can help retain employees and increase their efficiency and productivity,” says Sarveshaa.

 

Reality check

Labour shortage was always an underlying issue for the sector; the pandemic just made it bare. As of now, the issue has now reached a crisis level. Most of the analysts feel that labour and skills shortages would have a big impact on profitability of the developers over the next 10 years. Addressing the challenge will require a mix of sensitivity towards the labours as well as the skill upscaling.

Developers must also look at incentivising ways in which worker efficiency can be improved and channelized. Regular skill development programmes for bar benders, carpenters, masons, and the unskilled workforce is the need of the hour. A quality assurance programme is urgently needed where specific training sessions are conducted before starting a particular construction activity which could help get it right the first time with the lowest amount of wastage. If the entire sector takes up these initiatives, the problem can be effectively tackled.

Additionally, the industry should prioritise the safety and well-being of its employees. Moreover, collaboration with the government to create policies that support the construction industry and its employees. Managing the labour shortage in the industry necessitates an all-encompassing strategy that prioritises the well-being of employees and invests in adaptable workforce solutions. In sum, more people need to be brought into the mainstream labour force with better incentivised working conditions ensuring safety, well-being and belongingness.

(The writer is CEO, Track2Realty)

 

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected]
Was this article useful?
  • 😃 (0)
  • 😐 (0)
  • 😔 (0)

Recent Podcasts

  • Keeping it Real: Housing.com podcast Episode 45Keeping it Real: Housing.com podcast Episode 45
  • Keeping it Real: Housing.com podcast Episode 44Keeping it Real: Housing.com podcast Episode 44
  • Keeping it Real: Housing.com podcast Episode 43Keeping it Real: Housing.com podcast Episode 43
  • Keeping it Real: Housing.com podcast Episode 42Keeping it Real: Housing.com podcast Episode 42
  • Keeping it Real: Housing.com podcast Episode 41Keeping it Real: Housing.com podcast Episode 41
  • Keeping it Real: Housing.com podcast Episode 40Keeping it Real: Housing.com podcast Episode 40