How a Workforce Management tool Can Help with Construction Payroll
Managing construction payroll can be quite a headache for administrators. Whether your business has its own payroll department or it’s the responsibility of finance or human resources, every pay period can bring a new set of challenges. From juggling different job sites, union fringe, and a maze of compliance regulations, it’s difficult.
It can feel like trying to solve a new puzzle every single pay period, even for experienced professionals. So, imagine how the workers might feel deciphering their pay stubs!
However, construction payroll can be simpler and more efficient for everyone. Let’s discuss how a cloud-based Workforce Management (WFM) system can make it happen.
The Hidden Costs of Manual Payroll Processes
Manual data entry creates massive bottlenecks in your workflow. Relying on it can drastically increase error rates and waste valuable administrative time. Instead of focusing on strategic growth, your team is constantly putting out fires caused by errors. Reconciling payroll across different projects and job sites causes immense frustration. According to research from McKinsey & Company, 60% of employees could save 30% of their time by automating their workflows. Reclaiming that time will save your organization money. Now factor in the time lost due to poor communication, trying to stay on top of changing regulations, and fixing errors. The potential for savings is quite substantial.
Promote Transparent Communication with Employees
Transparent communication can be a relationship builder. When employees know the rules and processes that shape their everyday work life, it can help strengthen relationships with their bosses and crew.
In fact, HRD reports that nearly 30% of the time, organizations experience low retention because of ineffective communication between management and staff members.
How does a WFM promote transparent communication?
A cloud-based WFM can help businesses organize information and resources in one place. So employees can easily access benefits, payroll, scheduling, leave, learning, and more from wherever they are.
How often do you see a construction crew sitting behind a desk? Not often, if at all. Accessing data and communicating with stakeholders without being in the office is a win for everyone.
And when employees know the ins and outs of things that affect their day-to-day, including their paycheck, it can limit the confusion.
Make Mobile Technology Available in the Field
Mobile capabilities are no longer a luxury. Project managers and field supervisors need access to real-time data wherever they are. The right cloud-based WFM allows field teams to easily capture hours, labor rates, and project or phase time distributions. Imagine the time saved by eliminating the need to track down missing time data or manually rekey labor hours and wage rates from one system to another.
Another gamechanger with mobile technology is geolocation and geofence.
Geolocation:
Geolocation can create boundaries for important common locations or work sites. These virtual boundaries make it possible for users to easily access information about that specific location while they’re on site.
A convenient perk of this feature is that users don’t have to adjust their phone settings. Since geolocation uses the location of the user’s phone, they will automatically have access when they arrive.
Geofence:
Geofence works like a virtual fence. It helps determine whether employees are within the boundaries when clocking in and out. Employees who are within the specified radius can clock in while those outside of the radius can’t.
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Deploy Self-Service Tools
Employees count on their paychecks to be accurate and on time. Over 60% of Americans are living from one paycheck to the next. So, it’s safe to say that even a tiny payroll mistake can cause problems for a worker and their family.
In the construction world, we don’t usually see self-service payroll technology, but finding a cloud-based WFM can change the game. It gives employees the ability to access and manage their own payroll information online and all in one place. Using self-service tools means fewer mistakes.
In addition to payroll, self-service also means having anytime access to their W2, paystub, time off balances, handbook information, and more. The employee doesn’t have to make a request and wait to hear from the HR team, and their HR team doesn’t have to take time to gather and process the information to send to them.
When employees are applying for loans, working on their taxes, or planning a vacation, having real-time access to this information makes it much more convenient.
Another perk of self-service tools is that it also creates digital audit trails. This reduces liabilities around payroll and HR processes. And, fewer manual processes mean less paper.
Offer Direct Deposit
Direct deposit means less hassle for your payroll department and your employees. With direct deposit, employees can save the time and effort of going to the bank. It also provides a digital record without the paper trail.
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Recommended for you: Hear how Workforce Go makes the payroll process much simpler for IPI. |
Turning Foremen into Financial Stewards
Your field foremen are the true frontline of your labor costs. Often, they struggle because they lack visibility into the financial impact of their daily decisions. When you provide them with mobile access to real-time labor data, the conversation changes entirely.
Instead of wondering if they are over budget, they can see exactly where they stand against project goals. When a foreman understands how their crew’s hours impact the broader project profitability, they become active partners in your business success. They can make smarter adjustments in real-time. This shift reduces the friction between the job site and the office, turning your field leaders into proactive stewards of your company’s financial health. You get a better bottom line, and they get the clarity they need to lead their crews effectively.
The Hidden Recruitment Advantage
Skilled employees know exactly which companies run a smooth operation. Your reputation travels fast on the job site. When payday arrives, reliable, clear, and on-time paychecks build deep trust. Conversely, repeated payroll errors or confusing pay stubs can drive your top talent straight to your competitors.
By adopting a modern workforce management solution, you are doing much more than just simplifying a back-office process. You are demonstrating to your team that you value their hard work enough to invest in their experience. A professional, seamless payroll and self-service portal makes you an employer of choice. It shows you care about their time and their livelihoods. This is a massive competitive advantage in a tight labor market where skilled workers are scarce and have plenty of options. When 2.7% of construction jobs are going unfilled and the lack of skilled labor is the leading cause of construction delays, your reputation as an employer matters more than ever.
Beyond Compliance—The Proactive Peace of Mind
Many owners view record-keeping as a reactive chore meant only to satisfy regulators. But digitizing your workflow offers a better path: proactive organization. When every time card, tax deduction, and fringe calculation is tracked automatically in one cloud-based system, you’re ready for anything. You don’t need to scramble when a surprise audit occurs. Your data is clean, consistent, and instantly accessible.
You avoid penalties and get to sleep soundly on Sunday night, knowing your records are impeccable. Enjoy the peace that comes from a perfectly organized digital history. Say goodbye to frantic, stressful searches through dusty paper files.
Choose Software Specifically for Construction
Choosing a solution designed specifically for construction is the only way to accomplish everything mentioned above, especially getting the paycheck right.
For example, managing prevailing wage, Davis-Bacon requirements, and union payrolls without automation can take a lot of time and effort. Implementing the right construction-specific solution makes it easier to calculate fringes and deductions and create certified payroll reports.
Off-the-shelf payroll systems don’t meet the unique needs of the construction industry. If you’ve ever tried to use one, you may have ended up more frustrated than before.
Software integrations designed specifically for construction payroll can manage fringes and deductions but can also manage all aspects of the process effectively. Here are a few other features to take note of:
- Manage payroll across multiple projects
- Meet union fringe and prevailing wage requirements
- Integrate tax codes
- Assign labor costs to specific jobs or project phases
Cloud-based WFM options
WFM systems can integrate with other cloud-based technologies, including ERPs. If your business uses an ERP, it’s essential to find the right WFM to complement your current service and help you achieve your goals.
Many WFM solutions require businesses to purchase a whole suite of services regardless of what they need. But it’s worth taking time to choose the solution that will take time to understand your business and help you choose the right tools to get you where you want to go.
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Workforce Go Construction Utility seamlessly integrates with Acumatica, Sage 300 CRE, and Sage Intacct. We are here to help you take your construction payroll management to the next level. |
