Top 4 HR Challenges in the Construction Industry

The construction industry faces some challenges when it comes to workers.

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Many industries experienced serious challenges during the height of the pandemic but Government projects and demand for housing kept the Hawaii construction industry going. Alongside increasing tourism spending, the momentum in the construction industry is expected to continue in 2022. That’s the good news. The bad news is that the industry faces some challenges when it comes to workers. Let’s take a look at the top 4 HR problems facing the construction industry today along with some solutions.

Top 4 HR Challenges in the Construction Industry

Human resources expertise is really important for construction companies, especially when it comes to resolving the top worker issues faced by the industry. Many small construction companies are turning to Professional Employer Organizations (PEOs) for help with their HR challenges.

1. Finding qualified workers

The number one issue facing most industries today is finding qualified workers but the problem is especially challenging for construction companies who require workers with specific skills and/or certifications. With workers feeling empowered to change industries for better benefits and working conditions, construction companies will need to step up their recruiting efforts.

HR can help with recruiting by creating and maintaining a pipeline of potential employees, even when the company isn’t actively hiring and identifying competitive salary and benefits packages that will entice workers to choose your business over your competitors.

2. Keeping workers safe

Construction work comes with inherent safety risks, which should make safety precautions a top priority for all construction employers. Construction companies that fail to keep their workers safe are risking lost productivity with injured workers off the job, high workers’ compensation claims, escalating health care expenses, and even lawsuits from the injured party.

HR has an important role to play in maintaining worker safety. There are several steps that can be taken, including:

Evaluating workplace safety and designing a safety program that helps prevent injuries.

Creating clear and realistic safety protocols and sharing them with all workers so supervisors know what to do if someone is hurt. Creating and hanging signs with safety protocol that can be posted around the work site as a reminder.

Providing thorough and appropriate training for any employees operating heavy machinery or dealing with hazardous materials.

Sharing the company’s commitment to worker safety with supervisors and foremen so the message can be passed along in the way workers are expected to complete their work.

3. Keeping workers’ compensation costs in check

When workers get injured on the job, workers’ compensation costs increase. Before long, the growing costs can impact a business’ ability to succeed. In addition to the safety measures discussed above, finding ways to reduce the length of time a worker is out on a workers’ compensation claim can reduce costs.

When small businesses partner with a PEO, the PEO can decrease workers’ compensation expenses by negotiating competitive programs with insurance providers, resolving claims in an efficient way, and managing communication with injured employees.

4. Reducing employee turnover

With the amount of money and effort it takes to hire qualified workers and the cost of lost productivity when workers quit, construction companies should be extremely motivated to retain their best employees for as long as possible.

Most employees are looking for a few common things: to be treated with respect, to be given reasonable workplace flexibility and opportunity for advancement, competitive compensation, and great benefits. All of these things can be accomplished with the help of HR. Keep in mind that businesses that partner with a PEO get access to benefits packages that only large businesses could normally afford.

Companies in the construction industry are in a good position to succeed if these worker challenges can be overcome with the help of HR.

Partnering with Makai HR

Need HR support? When you partner with Makai HR you can get on with the business you are trying to grow while we take care of your employee needs from payroll to taxes, health insurance/benefits and worker’s compensation. You also gain peace of mind that you are compliant with all of Hawaii’s employer laws (if you’ve ever looked you know that the list is very long and changes happen). When choosing a PEO to partner with, there are many things to consider including cost, services, and technology solutions. 

With the cost of doing business in Hawaii at record highs, we know how important it is to keep labor costs in line with revenue. Our plans are priced competitively and include value-added services like time-in/time-out systems. Our three tiers of PEO service plans are tailored to the size of your business and specific needs. We offer a 100% paperless solution which means that your employees can manage their needs through a computer, tablet, or phone. We can truly improve your employees’ work benefits while freeing you up to run your business.

What are you waiting for? Companies that partner with a PEO benefit from 7-9% faster growth, 10-14% lower employee turnover; and they are 50% less likely to go out of business. Contact us today to get started!

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