Staying ahead of the curve in the construction industry depends on how quickly you can adapt and respond to challenges. Here are five you may encounter this year, along with tips and tools to overcome them:
1. Labor shortages
Baby boomers are aging out of the workforce faster than younger talent can be sourced to fill their positions. There’s also a perception that construction work pays poorly or is unstable. As a result, more time and money may be required to recruit and retain qualified candidates.
Benchmarking gives you access to industry data so you can see what your competitors are paying their people. With real-time statistics, you can make more informed decisions about compensation for both new and existing employees.
2. The economy trending in an uncertain direction
Economic uncertainty and rising costs directly impact incentives, like signing bonuses and overtime pay. Many employers consider these the best ways to retain employees, but tightened budgets due to economic concerns may make pay increases unfeasible.
Career development programs
Not all incentives are monetary. Career development programs can help you keep employees engaged and coming to work.
3. Compliance concerns
Layering union workers with non-union workers and tackling government-funded and private projects is complicated. Additionally, employees swapping back and forth between jobs creates a long list of labor cost codes.
Human capital management (HCM) solutions
Using workarounds or calculating labor and project costs by hand is no longer viable. You may need an automated HCM solution with job-costing capabilities and certified payroll reporting to address the nuances of union and government projects.
For more of the five challenges shaping the construction industry and how to overcome them, download our insight.