Larsen & Toubro (L&T), one of India’s largest infrastructure and construction companies, is facing significant challenges in mobilising labour and managing attrition rates, according to Chairman and Managing Director SN Subrahmanyan.
Speaking at the CII Mystic South Global Linkages Summit 2025 in Chennai, Subrahmanyan highlighted the growing difficulties in hiring and retaining workers.
Labour Mobilisation Challenges: Impact on Construction Sector
Subrahmanyan pointed out that the company employs about 2.5 lakh staff and 4 lakh labourers at any given time. However, the attrition rate among labourers has increased fourfold, making it increasingly difficult to mobilise workers for projects.
He attributed this trend to various factors, including the availability of welfare schemes and direct benefit transfers (DBTs) that provide financial stability to workers, reducing their incentive to relocate for work.
The reluctance of workers to move for job opportunities is not limited to blue-collar workers but also extends to white-collar professionals.
Subrahmanyan noted that when he joined L&T as a graduate engineer, relocation was a common expectation, but today, workers are more resistant to moving for work.
This trend poses a significant challenge to the construction sector, which relies heavily on a steady supply of labour to complete projects on time.
Strategies Adopted by L&T to Address Labour Shortages
To tackle these challenges, L&T has created a dedicated HR team for labour mobilisation, recruitment, and deployment.
Despite these efforts, the company continues to face growing challenges in hiring construction workers.
Subrahmanyan emphasized the need for flexible HR policies to adapt to the changing work environment and attract workers.
He also highlighted the importance of skill training institutes and technology adoption to address workforce issues.
Subrahmanyan’s comments reflect a broader trend in the industry, where companies are struggling to find and retain skilled labour.
The reluctance of workers to relocate for jobs is a significant hurdle for businesses and the nation’s growth.
Subrahmanyan stressed the need for innovative solutions, such as 3D printed buildings, to address labour shortages in the future.
Note: We are also on WhatsApp, LinkedIn, Google News, and YouTube. To get the latest news updates, subscribe to our channels. WhatsApp: Click Here, Google News: Click Here, YouTube: Click Here, and LinkedIn: Click Here.
