In the dynamic world of construction, managing manpower efficiently is crucial. Recently, I had the privilege of assisting a valued client in the electrical industry navigate a challenge that many in the construction sector face—managing overtime hours for their workforce.
Our client, an electrical company (whose identity we’ll keep confidential), was grappling with the repercussions of extended working hours for their construction workforce. Interestingly, this challenge unfolded despite having two dedicated HR professionals on board. To add context, the headcount of 200 workers at the client’s site exacerbated the issue. Most workers were using manual handwritten timesheets, and one HR personnel was spending an entire month manually keying in timesheets into Excel for payroll calculations. This not only incurred unnecessary costs but was also an inefficient use of valuable human resources.
In addressing this challenge, we took a holistic approach. Recognizing the inefficiency of the manual timesheet process, we implemented a streamlined solution. By creating an online Excel timesheet and structurally delegating this task to team leaders, as well as outsourcing a portion of it, we managed to save a staggering 50% of the HR personnel’s time. This wasn’t just about cutting costs; it was a strategic move towards optimizing resources and enhancing overall operational efficiency.
Most construction workers have overtime hours as they typically work really long hours. This leads to high overtime cost. When such hours are not tracked efficiently, the company has to bear the cost. When I looked through their numbers on the excel sheet, one thing popped out very significantly for me
“Most workers were being paid for break time, which isn’t payable by the company wrongfully!”
When I raised these issues, the management team was shocked and relieved at the same time. The impact was twofold—over $200,000 in savings on overtime payments and a significant reduction in HR hours spent on manual timesheet entry. These changes not only optimised costs but also freed up valuable HR resources for more strategic initiatives.
Beyond the monetary savings, the streamlined process demonstrated an increased commitment to operational efficiency. Our client’s improved HR workflow showcased a forward-thinking approach, setting them on a path towards modernizing their labor management practices.
In the world of construction, every dollar saved and every process refined adds up. By addressing the issue of overtime hours and optimizing the labor management process, we not only saved our client a substantial amount but also fortified their standing in an industry where reputation is paramount.
If you’re navigating similar challenges or seeking ways to enhance your HR efficiency, especially in the realm of construction and overtime management, let’s connect. Explore the benefits of streamlined processes and discover how outsourcing certain HR functions can propel your company forward.
Are you ready to build a foundation for success in the ever-evolving landscape of construction? Contact us now!