Numerous factors determine the success of a commercial construction project, and among them, staffing is crucial. Having the right team in place can accelerate delivery speed and cost savings. However, the availability of skilled labor and unpredictable market conditions pose challenges for construction companies in managing staffing needs. To tackle this issue, we delve into how commercial construction firms can maintain high efficiency and cost savings in staffing without compromising delivery speed.
Understanding the Importance of Effective Staffing in Commercial Construction
First, an effective staffing strategy is vital to the commercial construction industry. It goes beyond filling positions and involves maintaining a talented workforce that can be easily scaled up or down depending on project demands. This approach improves efficiency and reduces costs by avoiding unnecessary labor expenses.
Another benefit is industry knowledge. Skilled workers with experience in the commercial construction industry understand critical project details and can provide valuable insights and solutions. They know how to navigate government regulations, tackle energy services, and even handle decommissioning work. Their expertise in various industries like oil & gas, power & utility, chemical, and renewable energy can help save time and money.
Moreover, having a knowledgeable and skilled team can lead to repeat customers. Clients are more likely to trust a company that consistently delivers high-quality results. By investing in your staffing, you invest in your commercial construction company’s long-term success and profitability.
Studies have shown that poor staffing decisions can cost companies up to five times the annual salary of the position in question, highlighting the importance of making strategic staffing decisions in the commercial construction industry.
Exploring Cost-efficient Strategies for Staffing in Commercial Construction
To fully leverage cost-efficient staffing strategies in commercial construction, company leaders may need to shift their overall mindset around human resources from a purely transactional perspective toward a more strategic focus on long-term workforce planning. Successful cost-saving staffing strategies may involve leveraging data analysis tools and hiring predictive analytics experts to inform staffing decisions based on project timelines, budgets, and past performance.
According to a survey by the Associated General Contractors of America, nearly 80% of commercial construction companies are having difficulty filling hourly craft positions, making it more challenging for these companies to optimize staffing and achieve cost savings.
Instead of solely relying on permanent hires, commercial construction companies can explore the benefits of contract or direct hire options through staffing firms like FootBridge. By utilizing contract workers, companies can flexibly ramp up or down quickly based on project demands, avoiding unnecessary labor costs during slower periods. Plus, with contract hires, your company isn’t committed to paying an annual salary or benefits. Instead, the staffing firm pays the contractor an hourly rate. It assumes responsibility for health benefits, vacation, sick time, and more.
Another cost-efficient strategy is hiring recent graduates or partnering with commercial construction school projects. These candidates may be more affordable and eager to learn while bringing the team fresh perspectives and innovative ideas.
Practical Steps to Optimize Staffing and Boost Profitability in Commercial Construction
Did you know that assessing a candidate’s skills, experience, and cultural fit can help prevent costly turnover and improve overall efficiency? It sounds simple, but plenty of details go into sourcing, screening, and vetting qualified candidates. Next, streamline the hiring process by thoroughly assessing candidates’ skills, experience, and cultural fit to reduce turnover and improve overall efficiency. Lastly, staying current with government construction regulations and incentives is essential as taking advantage of government programs can provide cost-saving opportunities, such as tax incentives or grants for energy-efficient projects.
Research has shown that diverse teams tend to be more innovative and productive than homogenous ones, emphasizing the potential benefits of creating inclusive work environments and hiring employees with varied backgrounds and skill sets. Finding the ideal candidate for a job requires more than just conducting database searches. The role of a recruiter involves extensive efforts in sourcing, pre-screening, and interviewing potential candidates, as well as building strong client relationships. If you want to elevate your business in the commercial construction industry, consider partnering with FootBridge to take advantage of our expertise. Contact us today to discover how we can assist you in achieving your goals.