Projects require an extensive workforce. HR best practices for construction projects proactively address potential concerns and issues. They also serve as a guideline to help manage various stakeholders on-site. It is nearly impossible to properly manage and address the needs of any workforce without some form of HR in the mix.
Here is how to guard against internal risk factors and external variables and treat your workforce right.
1. Analyze Workforce Needs for Each Project Phase
Understanding workforce needs per project phase can help avoid overscheduling or underscheduling workers. An HR representative should be able to use their own industry knowledge and historical project data to gauge forecast labor needs.
2. Establish a Clear Leadership Structure
Have a strong leadership structure. Clearly define the roles and structure between project managers, site supervisors, and foremen. Ensure every worker knows who to go to if they have questions, and train your leaders to manage diverse teams. Company structures are important for efficiency.
3. Maintain Ongoing Compliance With Labour Laws
Ensure your construction project operates legally and that contractors’ legal rights are respected. As labor laws and regulations can change, it’s imperative to remain current on present-day standards and ensure that all mandates and requirements are met.
4. Monitor the Workforce Available to You
Unexpected developments can occur in any workforce. Ensure you know skill gaps, specific worker demands, and how those demands fluctuate over the project. Have contingency plans in place if there are unexpected absences or turnover.
5. Carefully Manage Contractor Accounting Software
Contractor accounting software will aid you in tracking project costs, managing inventory, and generating invoices. It can also track payroll and ensure your team is getting paid. Have your workforce registered in your accounting software so that no payroll-related expense goes unpaid?
6. Focus on Skilled Labour Recruitment
Consider how to hire the best laborer. Partner with trade schools and apprenticeship programs to find them. Offer sign-on bonuses if you’re seeking out a hard-to-fill role. Use job boards you know are seen regularly and most likely to get you applications.
7. Offer the Best Compensation and Benefits You Can
The pay for the average construction worker remains fairly low despite the high risks involved and challenges on-site. In HR, consider how you can sweeten the deal and offer better compensation, benefits, and rewards. This can differentiate you from competitors and capture your better-qualified candidates for the work ahead.
8. Invest in Skills Development
Launch an in-house training program, partner with trade schools, and invest in upskilling your lower-skilled workers post-hiring. The more people you successfully train on your construction projects, the more contacts you have and the better you can recruit.
9. Streamline Role-Specific Onboarding
You want to avoid hiring a team and putting them immediately on-site with guidance. Onboarding is necessary for any construction project—Automate paperwork with a digital app or platform to assist. Provide site-specific safety training and role-specific onboarding.
10. Maintain Accurate Time Tracking
Use software systems to maintain accurate time tracking on construction projects—track times for workers and specific project tasks. Utilize a system where workers clock in and clock out. Automated tracking, which some studies have found can reduce payroll errors by up to 40%, is also recommended.
11. Regularly Track Workforce Productivity
Regular productivity checks in construction can save up to 15% on total labor costs. Use important metrics like Earned Value Management to assess your labor efficiency. Compare actual hours worked to planned hours weekly to see what needs addressing.
12. Develop a Strong Union Partnership
There is no reason to be combative with unions. They are a part of the construction game. If anything, build strong partnerships with local unions for skilled labor. Avoid delays by negotiating labor agreements quickly. Stay informed on upcoming changes in the union to minimize interference.
13. Protect Worker Safety on the Job Site
A construction site can have dangerous conditions, which can be created or aggravated by weather. HR should protect workers for their safety and shield the construction company and related stakeholders from workers’ compensation costs.
14. Vet Workers to Confirm They Are Properly Trained
Ensure that the person you hire is properly trained and certified. Confirm before you put them on-site. They should have the safety training and job skills to be in their role. If you still need to, you must cut or train them.
15. Embrace HR Construction Software and Technology
Tap into your digital tools and software, such as contractor accounting software. Adopting these digital tools can mean operating faster and more efficiently. It creates less work for administrative HR, and some aspects can be automated.
