Budgets are getting tight in the construction industry. The level of competition is getting seriously intense and customers are getting more price-conscious. As a direct consequence, construction companies are forced to reduce operational expenses and protect their profit margins. At the same time, companies have to continue to invest in equipment and personnel, making the challenge even greater.
One approach for improving profitability requires adoption of new software. Among other services for cutting costs, time and attendance software is an effective way of saving money. Here’s why:
1. Lower overall labour costs
The first step towards establishing control over the staffing situation is to learn exactly who is available and who isn’t.
For companies managing multiple building sites and fielding several teams, this could be a significant challenge. You need the right technology. With updated time and attendance software and a centrally managed HR system, construction companies can always be aware of the status of general labourers or key specialists. Idle or redundant personnel are quickly redirected to another project, while shortages can be solved through reassignment. Those measures help to lower labour costs by a significant margin and keep the project within the planned budget.
2. 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. Any delays caused by lack of manpower can be disastrous. The responsibility to ensure strict workforce management and overcome individual absences is on HR departments, who use time and attendance solutions that facilitate precise tracking and proactive planning. With a digital solution, you can integrate data from various sources and identify projects that could suffer from a critical shortage.
3. Safeguarding against accidents
Building sites are inherently dangerous despite all the safety policies that construction companies routinely implement. To minimise the danger and prevent 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 centralised 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 not qualified for.
4. Merit-based promotion system
Any company depends on its leaders and benefits when 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. Work hours are just one aspect of objective assessment of worker’s contributions. Elevating widely respected hard workers into leading positions motivates younger employees to try their best and keep absences to a minimum, and unlikely to evoke resentment from the veterans.