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HR Issues in the Construction Industry

by Matt SchoolcraftDecember 15, 2016 8:00 AM

The United States Construction Industry is sure to face some changes in the coming year, with the change of leadership and direction of the country. Regardless of your position, there has been a push for investment in this country’s infrastructure on both sides of the aisle.

President-elect Trump has mapped out a $1 trillion infrastructure plan with the help of Economic Advisors Peter Navarro and Wilbur Ross. They have broken down a 10-year plan, with the focus of funding coming from private entities. The idea is for these revenue generating projects (i.e. Utilities, toll roads, airports…etc.) to provide tax credits to the private investors to be counterbalanced by the employee and company taxes generated from these projects.

All parties have agreed on the need for investment into our infrastructure, which in turn, should generate more jobs in the construction industry across the country. That being the case, there are HR issues that need to be addressed through the industry to aid in this growth.

Image of a construction worker. Contact GMS for help with HR issues in the construction industry.

Top Issues Facing the Construction Industry

  1. Recruitment: According to a 2016 National Survey by the Associated General Contractors, two-thirds of contractors are having a difficult time finding qualified craft workers to keep up with the demand.
  2. Workers’ Compensation Costs: In this high risk industry, employers are finding it difficult to maintain reasonable premiums for workers’ compensation coverage. In March of 2015, workers’ compensation costs comprised 3 percent of overall compensation versus a 1.4 percent average for all occupations.
  3. Safety: In 2014, 1 in 5 U.S. work related fatalities across the country were in the construction industry, at an average rate of over 13 deaths per day. 
  4. Worker Classification: There has been a trend of companies misclassifying workers as independent contractors to avoid having to pay Overtime, Federal Unemployment, as well as Social Security and Medicare Taxes. The penalties include the Department of Labor being able secure unpaid wages, penalties for failure to withhold taxes, as well as other punitive damages.

Many employers do not have the time or resources in order to effectively manage all of these areas. One way you can help combat these issues is by outsourcing all of your HR functions to a Professional Employer Organization. At Group Management Services, we have the experts to help make sure you are protected. Whether it is through recruiting, risk management, or competitive benefits plans, we have the ability to make your business simpler, safer, and stronger. Contact GMS today to learn more!  

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