How to Automate Your Human Resources Processes

The construction industry is notorious for its operational complexities, from managing sprawling project timelines to ensuring worker safety and compliance.

However, these challenges are often intensified by a reliance on manual processes, which can lead to inefficiencies, errors, and delays on the jobsite.

Human Resources departments, in particular, face significant hurdles, including labor shortages, complex payroll, and high turnover rates.

For construction companies, switching to modern technology to automate HR processes can be a game-changer. According to McKinsey & Company Global Institute, an estimated 56% of tasks performed by HR can be automated without drastic changes to current processes.

By adopting intuitive construction human resources management software, organizations can streamline administrative tasks, improve data accuracy, and gain valuable insights into their workforce, leading to increased efficiency, cost savings, and better decision-making.

But where do you begin? We’re here to break down automating HR processes by helping you understand the areas for automation and find the software that is right for you.

Key Takeaways for Human Resources Managers:

• Identify key areas for automation in your company, such as manual tasks like recruitment, onboarding, payroll, benefits, performance management, and compliance.
• Streamline processes by automating tasks like job postings, resume screening, onboarding paperwork, and benefits enrollment to increase efficiency.
• Improve data accuracy by utilizing HR software to ensure accurate payroll calculations and employee recordkeeping.
• Enhance employee experience with self-service portals, faster response times, and improved communication through automated systems.
• Support strategic decision-making by leveraging HR data analytics to identify trends, optimize workforce management, and make informed business decisions.

Key Areas for HR Automation

Automating HR processes refers to using software to program repetitive, tedious tasks so the administrative department can focus their energy on more important undertakings.

The construction industry is known for being slow to adopt new technologies; however, streamlining HR management has become essential with the increasing complexity of construction projects — to stay competitive in a dynamic commercial landscape, contractors need to be efficient.

There are a few key areas to focus on when looking for software to add to your collection. Specifically, look for features that can electronically perform the tasks that take up the most time.

Recruitment and Onboarding 

Streamlining the recruitment and employee onboarding process is crucial for construction companies. In fact, according to G2, 36% of HR professionals stated that a lack of onboarding automation has hindered their onboarding processes.

With high employee turnover rates, using an Applicant Tracking System (ATS) can significantly enhance efficiency by automating tasks such as:

• Job posting
• Resume screening
• Candidate communication

This frees up Human Resources teams from repetitive tasks and allows them to focus on building relationships with potential hires.

Digital onboarding can further accelerate the hiring process by allowing new employees to complete paperwork electronically, securely upload completed files, access company information digitally, and even participate in online training modules.

This automation software helps accommodate the mobile nature of many construction roles by ensuring all HR processes, from applications to benefits enrollment, can be accessed and completed on mobile devices.

Benefits Administration

Effective employee benefits administration directly impacts employee satisfaction and retention. According to UserGuiding, automating onboarding tasks results in a 16% increase in the employee retention rate for new hires.

Using software that offers a self-service employee portal empowers workers to access and manage their benefits information online, allowing employees to access W-2s, time changes, and paystubs directly.

This can help streamline the open enrollment process, which is often complex and time-consuming, by automating communications and enrollment forms.

Additionally, the software will allow HR personnel to easily verify benefit eligibility to ensure accurate enrollment and reduce the risk of errors or delays in coverage.

Performance Management

Effective performance management and talent development are critical for employee growth and organizational success.

Online performance review systems can facilitate goal setting, schedule, and track reviews for employees, projects, and peers while providing regular feedback to workers to streamline the evaluation process.

For HR personnel, talent management involves identifying high-potential employees and creating tailored development plans to nurture their skills and prepare them for future leadership roles.

Using technology to assist in this process creates a proactive approach that helps retain top talent, improves employee engagement, and builds a strong talent pipeline within the organization.

Compliance and Reporting

Effective human resources management relies on robust data management and analysis.

Using digital solutions that provide electronic document management systems that can securely store and organize employee records, training, and certifications ensures employee management.

This can make building a complete data audit trail easy while monitoring privacy compliance regulations.

Leveraging HR data through analytics also provides invaluable insights into workforce trends, performance metrics, and potential areas for improvement.

This approach supports informed data-driven decision-making, allowing HR to identify staffing needs, optimize workforce allocation, and mitigate potential jobsite risks.

More robust software can also quickly generate crucial HR reports, including automatically creating W-4, I-9, Veteran Status, and WOTC files for employees.

Payroll Processing

By using HR software that offers integration capabilities with your payroll system, you can ensure accurate and timely payroll processing.

This integration allows HR personnel to transfer employee data, PTO plans, direct deposit history, and more between systems.

Integrating important HR data directly into the payroll system ensures accurate calculations of hours worked and overtime pay, which helps to maintain legal compliance.

Most payroll services also offer direct deposit as a payment option, which can significantly reduce the administrative burden of paper checks and improve employee satisfaction by providing timely access to earnings.

Additionally, integrating with payroll software can help ensure accurate tax calculations, withholdings, and filings, reducing the risk of legal penalties and improving audits. Using an HR process automation software with this integration can help simplify payroll management.

Choosing the Right Software

Selecting the right human resources management software for a construction company is crucial for optimizing operations.

Begin by identifying specific HR challenges and requirements within your organization. Ask questions like:

• What are your company’s major HR challenges?
• Where is the most time being spent?
• Have there been errors in the past that could be avoided?
• What are the strengths and weaknesses of your current process?
• Are there integrations you’re looking for?

Monitor what your current pain points are within your system and see if there are software solutions that can assist in easing those points.

Involve stakeholders like HR personnel, recently hired employees, and managers early on in the process as well so they can identify their needs for the new program.

By carefully considering these questions and the specific needs of your construction company, you can select HR management software that effectively supports your operations and improves overall efficiency.

When selecting HR software, also be sure to consider factors such as:

• The size of your company
• Budget available
• Desired level of functionality

If you’re a small company, your needs will be different than that of a large company. The budget may vary per company as well so clarifying specific considerations can help ensure a return on investment when selecting software.

With that, be sure to prioritize software tailored to the construction industry.

If possible, consult with other construction companies or seek recommendations from industry associations to identify the best solutions currently available.

This will ensure it includes features that address the unique needs of your workforce, such as benefits administration, project-based workforce management and compliance with industry-specific regulations.

Finally, be sure to implement the software gradually, starting with core functionalities and expanding as needed. It can be stressful for employees adopting a new system so focus on providing comprehensive training for your staff to ensure employees are comfortable using the new system.

Continue this training and support even after the implementation process begins to guarantee long-term success.

This will allow employees to adjust to the new system and overcome resistance to change that may arise during the implementation process.

See How hrHQ Can Automate Your Processes

Automating HR processes within the construction industry is not just a step toward modernizing operations but a strategic necessity.

By leveraging technology to streamline tasks like recruitment, benefits administration, performance management, and compliance reporting, construction companies can significantly enhance efficiency, reduce errors, and improve overall workforce management.

This shift not only alleviates the administrative burden on HR teams but also empowers them to focus on more impactful activities, such as talent development and strategic planning.

As the industry continues to evolve, adopting tailored HR software solutions will be crucial in navigating the complexities of construction projects, ensuring regulatory compliance, and ultimately, driving organizational success.

And if you need a cloud-based human resources management solution, consider hrHQ!

Our system acts as a dashboard for HR specialists to manage all employee data, streamline new hire onboarding, and increase self-service opportunities for staff.

hrHQ makes it easy for HR managers to track all new employee document requirements and offers integrations with popular construction accounting software and payroll services.

Chat with a specialist today to learn more!