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In construction, HR has a crucial role to play given the special requirements of the industry. Performance management, training, and ensuring that safety protocols are implemented are all responsibilities of an organization’s HR team.
Colorado’s construction industry employs around 6.7% of workers compared to the national average of 5.4%. The year-over-year change in construction employment for the state has been a robust 2.2%, on par with the rest of the country.
Not surprisingly, the construction industry outlook for Colorado is also quite optimistic in keeping with the survey conducted by the Associated Builders and Contractors in early 2024. This survey also shows that the backlog of construction projects has decreased by about 1.1 months from a year ago.
Factors adding to the cheerful outlook include the easing of supply chain issues that plagued the sector since the COVID-19 pandemic. To capitalize on this positive trend, construction businesses in Colorado will have to rethink their workforce requirements and HR strategies.
One area that needs attention is the labor shortage looming large, not just regionally but, at a national level. There is a shortfall of about 650,000 workers across the country and about 40% of the construction workforce is expected to retire over the next decade. There is also the fact that the construction sector in Colorado is prone to seasonal fluctuations in workforce needs.
Colorado employers are also required to comply with state labor laws related to different aspects of employment such as minimum wage, overtime pay, and paid as well as unpaid leave. Streamlining construction HR processes will facilitate smooth operations and boost employee retention. Here’s how you can get started:
Harnessing technological innovations to automate mundane HR tasks can save your team’s valuable time and help the organization run smoothly. For instance, manual payroll calculations mean room for error and mistakes that could prove costly to the organization. Also, onboarding a new employee can be a time-consuming process and digital technology such as e-sign forms and apps can help.
The Arcoro Applicant Tracking System (ATS) and Onboarding modules, Sage Intacct Construction Payroll, and FOUNDATION® are among the popular HR software for construction companies in Colorado.
Using mobile-friendly HR solutions makes it easy to reach a geographically dispersed workforce in industries such as construction, where employees are not confined to their desks or offices.
In the construction sector, you can largely replace paperwork and administrative chores related to HR by switching to online timesheets and company documents digitized and made available on mobile devices. Mobile apps ensure easy accessibility, better communication, and improved data accuracy.
As with any industry sector, standardized procedures for HR functions can enhance quality, boost productivity, and improve clarity. For instance, having set templates for common HR documents and forms can ensure the smooth conduct of training sessions, performance reviews, and safety protocols.
By introducing employee self-service (ESS) portals for tasks such as accessing paystubs, updating personal information and, requesting time off, you can give more ownership to team members while reducing administrative burdens. With fewer one-off requests, your HR team can focus on strategic activities such as staff retention, enhancing productivity, and overall organizational structure.
Information is key to optimizing the effectiveness of HR strategies and using analytics is the best way of gaining this data. In many sectors, including construction, HR analytics can pinpoint trends and hidden patterns to understand the reasons for employee attrition and help increase retention. Similarly, access to employee time and attendance data can help the HR team ensure compliance with Colorado labor regulations such as overtime and wages.
Even if you have a talented in-house HR team, outsourcing some of your human resources tasks can be beneficial in more ways than one. It can act as a support system for your existing team and provide you access to specialized knowledge whenever required. Obsidian HR is a Colorado-based PEO company with a team of qualified and experienced professionals to provide HR support for construction companies in meeting organizational goals.
Call us today to speak to one of our team members.
