`

Labour Crisis at L&T

Labour Crisis at L&T
Case Code: HROB284
Case Length: 10 Pages
Period: 1938-2025
Pub Date: 2025
Teaching Note: Available
Price: Rs.300
Organization: Larsen & Toubro Limited
Industry: Conglomerate
Countries: India
Themes: Human Resource Planning, HR Planning, HR Policy
Labour Crisis at L&T
Abstract Case Intro 1 Case Intro 2 Excerpts

Abstract

In February 2025, India-based Larsen & Toubro (L&T), a multinational conglomerate, stated that it was experiencing a significant labor shortage throughout its businesses, which was causing delays in project execution. Sekharipuram Narayanan Subrahmanyan (Subrahmanyan), Chairman and Managing Director, L&T, expressed concern over the high rate of workforce attrition as well as unavailability of skilled labour. Although L&T employed 400,000 workers, it reportedly ended up hiring an extra 1.6 million workers per year due to attrition, which occurred three to four times a year at the rate of 10%. Subrahmanyan attributed the high attrition to the various government schemes & DBTs (direct benefit transfers) available to workers and their reluctance to relocate for jobs. L&T was struggling not only with the shortage of skilled and unskilled labourers but also with a shortfall of 20,000 engineers in its IT and IT-enabled services.

Although L&T had created a dedicated ‘HR team for labour’ department and implemented welfare schemes, the company continued to face manpower shortages. How can Subrahmanyan help L&T navigate the labour crisis?

Issues

The case is structured to achieve the following teaching objectives:

  • Understand the internal and external factors that create manpower shortage in a company and how it affects the company.
  • Analyze the role of HR policies in addressing a labour exodus.
  • Design a manpower retention strategy for a large construction company.

Contents

Keywords

L&T; Construction Industry; Labour Crisis; Migration; HR Policy; HR Planning; HR Forecasting; Retention Strategy,L&T; Construction Industry; Labour Crisis; Migration; Government Welfare Policies; Safety Issues; HR Policy; HR Planning; Retention Strategy; Business Growth

Buy this case study (Please select any one of the payment options)

Price: Rs.300
 Price: Rs.300
 PayPal (7 USD)

Custom Search