In any organization, effective staff recruitment and management strategies are important to create a productive, valuable workforce. Many companies prioritize human capital management (HCM), which comprises specific practices and strategies for hiring, training, development and other areas of employee engagement.
For organizations that facilitate construction work, HCM techniques — particularly HCM software — are especially important to achieve industry compliance, streamline risk management and navigate other industry challenges.
Key HCM Challenges in the Construction Industry
Various process issues can occur during construction, whether it’s going over budget, encountering material delays or failing to meet project deadlines due to improper planning. Additionally, construction teams can face obstacles related to HCM, including:
Workforce Management
Many organizations employ construction contractors on a seasonal and project-by-project basis. As a result, hiring managers are consistently looking for qualified individuals to work on different jobs. At the same time, the construction industry is facing a significant workforce shortage as of 2024, making it increasingly difficult for teams to locate suitable talent when needed. A high turnover rate also means it’s challenging to maintain and manage construction employees without the proper strategies.
Compliance With Labor Laws
A major aspect of human capital management in construction is compliance with employment and health and safety standards, including local building codes, insurance and bonding requirements and Occupational Safety and Health Administration regulations.
As one of the most regulated industries, it can be easy for organizations performing construction work to fall short of compliance due to process inefficiencies, disorganized recordkeeping, miscommunication with contractors and a range of similar difficulties.
Skilled Labor Shortage
Due to the industry’s skilled labor shortage, workers with specialized skills are hard to find, and they can be even harder to retain. Many workers are leaving the industry to work in other fields or retire. This phenomenon makes it essential for companies to implement construction training and development programs so they can cultivate growth. These programs help ensure team members have the knowledge and resources to continue to excel at their jobs and take on new tasks.
Benefits of Implementing HCM Software in Construction
In the digital age, you have more options to facilitate HCM for your business than outdated, generic software. Today, you can find purpose-built HCM software that makes it possible to manage your construction operations in a single, convenient platform. With the right HCM software, your company can navigate common operational issues and discover the following benefits:
Improved Recruitment and Onboarding Efficiency
An end-to-end HCM solution like PenguinData provides everything you need to streamline the hiring process for your organization. It’s easy to set up online applications, screen potential candidates and access important data about prospective team members. With access to that same information all in one platform, onboarding is a seamless process once you find the right individual for the job.
Given how crucial training and development are to supporting construction worker skill growth, it’s important to create a simple yet informative orientation experience for new hires. Through your HCM software, you can track how well new construction employees perform during orientation and spot areas where additional support may be needed. This information allows you to build a talented team that can take on a variety of jobs, helping you work toward filling the skilled labor gap.
Better Compliance and Risk Management
With so many industry regulations to understand and follow, a comprehensive HCM software can be a go-to tool for your organization. PenguinData software has quality assurance management features to help you track and meet certain safety criteria while having a complete overview of jobsites and crews. For example, you can track materials and labor throughout the project, giving you plenty of data to align with building code standards and workforce safety regulations.
Enhanced Employee Management
Whether you operate in oil and gas, telecommunications or utilities, keeping track of your organization’s personnel can be difficult — contractors may only work on certain jobs, and you need to manage them somewhat differently from W2 employees. The right HCM software will give you all the information and solutions you need to track team member performance, organize essential documents and streamline employee communication. This data gives you access to everything you need to effectively manage and empower your construction team.
Key Features of Effective HCM Solutions for Construction
When searching for an effective HCM solution, consider platforms that allow you to build a tailored solution that works perfectly for your specific organization. Ultimately, you want your HCM software to support your unique daily operations — and the distinct challenges you might face as a team. Here are a few examples of features to look for in a useful management platform:
- Performance management: Making sure your employees and contractors perform consistently is essential for company growth. Choose a software like PenguinData that allows you to monitor performance data, giving you insight into where certain employees may be able to improve. This way, you can create helpful feedback and development plans that encourage individual growth and ultimately help you retain more employees.
- Payroll and benefits administration: HCM software with payroll and benefits tools simplifies employee management. These tools allow you to prepare payroll checks, set up direct deposits, automate tax filing, and even facilitate workers’ compensation reporting. By having full control over essential payroll processes and data, you can mitigate common issues with construction cash flow.
- Schedule tracking: With seasonal and project-based employment, proper scheduling techniques are vital to your organization’s success. Look for an HCM platform that makes scheduling different projects simple. For example, PenguinData supplies helpful workforce analytics that let you see how your construction team is distributed across jobsites, and you can make informed decisions to relocate employees as needed.
Contact Us for a Product Demo Today
PenguinData provides intuitive HCM software for construction workforce management to support your company’s evolving needs. With our central, cloud-based system, you can manage every aspect of your construction operations. Thanks to an array of onboarding tools, quality control features, human resources solutions and more, you have what you need to overcome various obstacles, ranging from hiring issues to payroll oversights.
To start, you’ll choose the platform modules that benefit your company the most. We’re here to help you build a customized solution that aligns with your requirements and solves your most pertinent challenges. Then, you can connect all of your organization’s data to eliminate silos and unify your team members, whether they’re in the office or out on the site.
Are you ready to organize your business and stay on top of your construction operations? Learn more about our HCM platform today, and get in touch with us to request a demo!