Top 5 HR Challenges in Construction and How HR Tech Helps Solve Them
A survey of 300 small and mid-sized US construction companies revealed the top five HR challenges—finding and hiring candidates, performance reviews, time and attendance tracking, onboarding, and tracking certifications—which can be effectively addressed using HR technology tools like Applicant Tracking Systems, performance management software, and automated time tracking to streamline hiring, enhance employee engagement, and improve compliance.
Construction HR teams are facing significant challenges in managing their mobile workforces. Arcoro surveyed 300 people from small and mid-sized US construction companies across various sectors to identify their biggest HR challenges and how they utilize HR technology.
Respondents identified the Top 5 HR Challenges in Construction as:
- Finding and hiring the right candidates: 65%
- Performance reviews: 22%
- Time and attendance tracking: 22%
- Onboarding new employees: 21%
- Tracking employee certifications and compliance: 21%
The good news is that these challenges can be mitigated or solved with HR technology.
Quickly Hire Better Candidates
Recruiting candidates has become increasingly difficult due to an industry-wide labor shortage. According to the Associated Builders and Contractors (ABC), the construction industry needs to attract 439,000 net new workers in 2025 and an estimated 499,000 in 2026. The need to attract and retain workers will remain high.
HR technology, such as an Applicant Tracking System (ATS), can automate job postings, candidate communication, and background checks. Features like qualifying questions help filter out unqualified candidates, resulting in a more suitable candidate pool and a streamlined hiring process that reduces time-to-hire and saves money.
Transparent Performance Reviews
Performance reviews are essential but often underappreciated. Only 14% of employees strongly agree that their performance reviews motivate them to do better work, possibly because they are not involved in the process or annual goals are forgotten.
HR technology can centralize goals and competencies, offer 360-degree feedback, and create a career roadmap that engages employees. Performance management software helps managers understand their team's strengths and weaknesses, driving organizational success.
Accurate Time and Attendance Tracking
Manual time tracking with paper timesheets can be error-prone and time-consuming. Mistakes like transposed numbers or incorrect hours can delay payroll processing.
Time tracking software speeds up payroll and reduces errors from manual tracking. It eliminates issues like illegible handwriting or inaccurate records, turning a multi-day task into one that takes minutes.
Simple and Easy Onboarding
Paperwork-heavy onboarding can give new hires a poor first impression and delay engagement. In some cases, new hires may quit before starting.
A cloud-based onboarding solution can automate paperwork, improve collaboration, standardize the hiring process, enhance the candidate experience, leverage data for improvement, and ensure compliance with regulations such as EEO, OFCCP, and GDPR.
Easily Track Employee Certifications
Tracking certifications on spreadsheets can lead to mistakes and missed renewals, risking noncompliance.
A learning management system can store more data than spreadsheets and present it in an easy-to-use format. Advanced analytics allow administrators to monitor learning plan tasks and certification statuses. Automated reminders help ensure deadlines are not missed.
Meet Your HR Challenges Head On with HR Tech
From hiring and onboarding to time tracking and payroll, HR software streamlines workforce management and eases the burden on construction HR teams. Solutions like Arcoro’s Hire, Manage, Time, and Grow provide tools to automate HR processes, improving efficiency, productivity, and employee engagement.
If you’re facing these HR challenges, consider scheduling an HR assessment to uncover inefficiencies and see how HR tech can transform your workforce.
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