Economic conditions, government policies, labor regulations, and technological advancements influence construction payroll trends. Below are a few significant trends impacting payroll teams and their construction firms.
Wage Growth: The construction industry has seen steady wage growth in recent years due to the increasing demand for skilled labor. The average hourly earnings for construction workers increased by 3.7% in 2021, according to the Bureau of Labor Statistics (BLS).
Labor Shortage: For several years, the industry has been experiencing a skilled worker shortage, which has led to higher wages and increased competition for talent. This has pressured construction companies to offer more competitive compensation packages to attract and retain employees.
Compliance: Compliance with labor laws and regulations has become increasingly important for construction companies. This includes compliance with overtime pay, minimum wage, and worker safety regulations. Failure to comply can result in legal penalties, which can be costly for construction companies.
Technology: The construction industry is rapidly adopting technology to improve efficiency and productivity. Leveraging automation, robotics, and data analytics bring advancements that can help reduce labor costs, but they also require skilled workers trained to use these technologies.
Overall, construction payroll trends are influenced by various factors, and payroll leaders must stay current on industry developments to remain competitive and compliant with labor laws and regulations.
The Top 10 Benefits of Construction Payroll Technology
Construction payroll technology offers numerous benefits for companies in the construction industry. Here are the top 10 benefits of construction payroll technology:
Construction payroll technology offers numerous benefits for companies in the construction industry. By automating processes, reducing errors, improving compliance, and providing real-time access to data, payroll technology can help construction companies streamline their payroll operations and save time and money.
Why is it essential to connect your construction payroll system to field applications?
Connecting your construction payroll system to field applications is important because it can help improve efficiency, accuracy, and productivity in your construction business.
Connecting your payroll system to field applications allows real-time data sharing between the field and the office. For example, construction workers can enter their time and job-related expenses directly into the field application, which is automatically synced with the payroll system eliminating manual data entry and reducing the risk of errors, improving accuracy and reducing the time needed for data entry.
Connecting your payroll system to field applications also improves office-to-filed communication. Your payroll team can easily access the data they need to process payroll, such as employee hours worked, overtime, and expenses, helping ensure that your construction workers are paid accurately and on time.
In addition, connecting your payroll system to field applications can also help with job costing and project management. You can track labor costs and expenses in real-time, allowing you to make informed decisions about job scheduling, budgeting, and resource allocation.
Connecting your construction payroll system to field applications can improve your construction business’s efficiency, accuracy, and productivity. You can streamline your payroll operations and improve your bottom line by eliminating manual data entry, improving communication, and providing real-time data access.
How much money can you save connecting the payroll system to field applications?
The amount of money a construction company can save by connecting its payroll system to field applications can vary depending on several factors, such as the company’s size, the number of employees, and the complexity of the payroll processes. However, some potential cost savings can be realized by connecting the office to the field.
One significant cost-saving benefit of connecting your payroll system to field applications is the reduction in manual data entry. In addition, automating the data entry process will reduce errors and save time typically spent on manual data entry tasks.
Connecting your payroll system to field applications can also help improve compliance with labor laws and regulations to help avoid costly legal penalties resulting from non-compliance.
Furthermore, having real-time access to labor costs and expenses allows you to make informed decisions about resource allocation and job scheduling, which can help reduce costs and improve profitability.
The cost savings of connecting your payroll system to field applications will depend on the specific circumstances of your construction company. However, the potential benefits of increased efficiency, accuracy, and compliance, as well as better job costing and project management, can help improve your bottom line over time.