As a direct consequence, construction companies are forced to reduce operational expenses and protect their profit margins as best they can in the face of the changing market. At the same time, companies from this industry must continue to invest in equipment and personnel, making the challenge even greater.
One approach suitable for improving profitability requires adoption of new software tools. Among other products that could be useful to construction companies looking to cut costs, time and attendance software deserves a good look. Here is why:
Lower overall labour costs
The first step towards establishing firm control over the staffing situation is to learn exactly who is available and who isn’t at any given time. For companies managing multiple building sites and fielding several teams, this could present a significant challenge unless modern technology is used to handle this task. With updated time and attendance software and a centrally managed HR database, construction companies can always be aware of the status of general labourers or key specialists. Idle or redundant personnel can be quickly redirected to another project, while shortages can be foreseen and solved through reassignment or short-term hires. Taken together, those measures help to lower labour costs by a significant margin and keep the project within the planned budget.
Meeting critical deadlines
Most construction companies are contractually obligated to finish the object they are building by a certain deadline, and face stiff financial penalties for failing to do so. Thus, any delays caused by lack of necessary manpower are disastrous of the balance sheet and must be avoided almost at any cost. The responsibility to ensure strict workforce management and overcome individual absences is on HR departments, which are driven to use time and attendance solutions that facilitate precise tracking and proactive planning. With a digital solution of this kind, it’s possible to integrate data from various sources and identify projects that could suffer from a critical shortage. That’s why technologically savvy companies rarely if ever miss important deadlines and often gain a market advantage over the long run.
Safeguarding against accidents
Building sites are inherently dangerous despite all the safety policies that construction companies routinely implement. To minimize the danger and prevent costly and image-damaging mishaps, companies should keep their best trained people in the most challenging areas. This is something that can be done more easily with a time and attendance system that allows mobile access and centralized control. Cloud solutions are increasingly deployed in this role, allowing construction companies to be fully aware who is present at each site and to react promptly in case something unusual happens. It’s much wiser to invest in a prevention tool than to pay for medical costs for workers who were injured because they were sent to perform tasks they weren’t qualified for.
Merit-based promotion system
Any company depends on its leaders and benefits financially when the most capable individuals are placed in decision-making positions. As a simple measure of effort and dedication, number of absences over the years represents an important parameter that shouldn’t be ignored when workers are evaluated for a possible promotion. To put it into perspective, work hours are just one aspect of objective assessment of worker’s contributions, helping to establish a true meritocracy. Elevating widely respected hard workers into leading positions is likely to motivate younger employees to try their best and keep absences to a minimum, and unlikely to evoke resentment from the veterans.