Top 10 Ways Construction Companies Can Stay Competitive

1. Calculate Public Hours

Being aware of the number of public vs. private hours your company records is important when it comes to regulatory matters. This is important since the local and state governments can enforce certain hours even though you may not have them in writing. You need to know what the company needs and then find the most efficient way of getting it.

2. Review Employee Benefits

It’s important to review employee benefits to make sure you’re getting the right benefits for the right employees. Employees are going to change throughout your career, and you need to keep up with them. It is essential to review how well your company is handling the benefits and perks it offers. You may have a good plan in place, but you may not be doing enough to keep your employees happy. You need to stay competitive by offering competitive benefits that attract and keep skilled craftsmen.

3. Consider Payment Structures

It's important to regularly evaluate the costs to your organization of benefits vs. employee wages. Keeping this in balance is critical.

4. Offer Supplemental Unemployment Benefits

Supplemental unemployment benefits are given to workers who have taken a job but are no longer working. Many employers offer these benefits to their workers because they sometimes are not paid for several weeks. It's important to keep the cost of benefits down by offering these. This will keep your workers from seeking employment elsewhere.

5. Invest in Employee Growth and Safety

It's important to invest in employee growth and safety. All employees should be able to feel safe and productive at work. Employers should also have adequate training and support for their staff. Invest in programs that help your employees grow and learn new skills, so they will feel that you're interested in their development. These programs can include paid time off, health care benefits, and training and development opportunities.

6. Reduce Your Labor Burden

A competitive construction company must run as leanly as possible and work on lowering its labor burden. You'll need to analyze and adjust your payroll, benefits, onboarding, training, and job scheduling as needed to meet your company's needs.

7. Know and Follow Prevailing Wage Regulations

The prevailing wage is the price you have to pay to the employer to get the work done. It's the government's way of ensuring that your labor costs do not exceed your prices. You have to know and follow prevailing wage regulations when you're working on the job. With the often complex and confusing requirements of prevailing wage laws, that is changing periodically from state to state; you might benefit from a lawyer's services or from someone in the company who is holding on to this. Also, it's worth knowing the requirements that the state or local government may have for adding to your company's payroll.

8. Offer a Best-in-Class Retirement Plan

It's essential to set clear goals for your retirement plan and ensure that you're offering a best-in-class retirement plan to keep your current employees stick to the organization. A retirement plan is a benefit that employees look for when they join a new company. It gives them the security of knowing that they will have some kind of retirement plan. In addition, it also gives you some room to work with your benefits department before you make an offer to an employee.

9. Join a Professional Association

Get involved in a professional organization for the construction business. The Association of General Contractors reports that the biggest challenge facing the industry is finding talented employees. It's a great way to network, vet subcontractors, and stay on top of the competition.

10. Invest in a Great Team

A great team is critical to the success of your business. Great teams make it easier for you to be able to meet your goals. You need to know whom you're bringing on to help you achieve your goals and what you're going to do for them. That including a top-notch CPA, lawyer, benefits provider, and insurance/bonding agent. A group of people who work well together will save you time and effort, and they will help you to achieve your goals by sharing the work.

The Bottom-line

Today's construction market is incredibly competitive. Every construction company is trying to maintain high-quality work while staying competitive in the marketplace. To stay competitive, you should implement appropriate tools and techniques for attracting and retaining talented employees.