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PurposeThe purpose of this paper is to identify critical factors that affect labour turnover in the New Zealand construction sector and develop a framework for addressing this issue.Design/methodology/approachA mixed-method approach was adopted. A questionnaire survey combined with interviews was used to capture the personal experiences and views of 157 construction workers regarding labour turnover.FindingsThe statistical analysis revealed that level of pay, employment relationships, employee welfare, opportunities for career development, commuting distance to work and domestic relationships were the top five factors considered as primary determinants leading to the turnover decisions of most of those surveyed. Factor analysis further categorised the critical factors in three categories, namely, (1) nature of the job, (2) employee satisfaction and (3) employer commitment to staff retention and development.Practical implicationsWhile high labour turnover rates take a toll on many construction businesses, the findings from this research will hopefully provide guidance on areas of improvement to create a sustainable construction workforce at both organisational and sectoral levels.Originality/valueAlthough the study is New Zealand-focused, it increases understanding of the factors affecting labour turnover in the construction sector, and the framework developed will provide construction organisations with directions in workforce retention and development to reduce the effects of labour turnover on organisational performance.