1. Workforce Planning & Seasonal Hiring
Why It Matters
Construction businesses often deal with seasonal surges, weather-driven delays, and fluctuating project timelines. Companies face labor shortages, project delays, and costly rehiring cycles without proper workforce planning. According to a 2024 AGC report, 81% of construction firms struggle to find skilled labor, making proactive hiring even more essential.
Best Practices
✔ Use workforce forecasting tools – Plan hiring needs based on project schedules, seasonal demand, and contract start dates. Accurate projections reduce last-minute hiring gaps.
✔ Develop a talent pipeline – Build relationships with trade schools, apprenticeship programs, and construction staffing firms to secure skilled labor when needed.
✔ Cross-train employees – Workers trained in multiple trades (e.g., carpentry and concrete) increase flexibility and reduce downtime between tasks.
✔ Offer retention incentives – Seasonal bonuses, attendance rewards, and referral programs help keep skilled workers returning project after project.
📌 Tool: Workforce Planning Template – Helps managers forecast labor needs and plan for seasonal hiring cycles.
2. Hiring & Onboarding Best Practices
Why It Matters
The construction sector is facing a generational talent shift. According to the National Center for Construction Education & Research (NCCER), 41% of the industry’s workforce is expected to retire within the next decade. With high turnover and ongoing labor shortages, companies must streamline hiring and onboarding to remain productive and compliant.
A strong onboarding process improves retention, accelerates productivity, and ensures compliance with wage, labor, and immigration laws.
Best Practices
✔ Standardize your hiring process – Use a consistent checklist to streamline interviews, document evaluations, and complete required forms (like I-9s) properly.
✔ Use structured, skills-based interviews – Focus on trade certifications, safety knowledge, and experience working under similar project conditions.
✔ Prioritize onboarding training – A structured onboarding process that includes safety orientation and company policies can reduce first-month turnover by up to 50%.
✔ Ensure all documentation is complete – This includes I-9 verification, W-4s, state tax forms, and safety policy acknowledgments. Use E-Verify if required in your state.
📌 Tool: Hiring & Onboarding Checklist – A step-by-step guide to help ensure compliance and consistency in new hire processing.
3. Safety & OSHA Compliance
Why It Matters
Construction is one of the most dangerous industries in the U.S. In 2023, OSHA reported more than 1,000 worker fatalities in construction, with the leading causes being falls, electrocution, and struck-by incidents. Safety violations don’t just result in fines—they can halt entire projects and harm your workforce’s reputation.
Establishing a safety-first culture and maintaining OSHA compliance is critical to reducing accidents, avoiding penalties, and protecting your people.
Best Practices
✔ Conduct regular jobsite safety audits – Identify hazards before they become injuries. Include walkthroughs, equipment inspections, and PPE compliance checks.
✔ Provide OSHA training—Ensure all field staff complete OSHA 10-, 30-, or 30-hour training based on their roles. Keep training logs current.
✔ Enforce PPE usage—Require and document the use of hard hats, safety vests, gloves, goggles, and fall protection equipment across all active job sites.
✔ Maintain compliance documentation – Keep up-to-date OSHA 300 logs, incident reports, inspection records, and training verifications on file.
📌 Tool: OSHA Compliance Checklist – Ensures every crew and project team meets construction safety standards and reporting requirements.
4. Managing Employee Retention & Engagement
Why It Matters
Construction turnover rates can exceed 50%, especially in trades where skilled workers are in high demand. Constant rehiring slows projects, raises training costs, and weakens team cohesion. According to the Construction Industry Institute (CII), companies with a formal retention plan see a 30% reduction in turnover.
Boosting engagement through recognition, communication, and better working conditions can lead to longer tenures and higher productivity.
Best Practices
✔ Offer clear career paths – Promote from within and provide training opportunities for roles like crew lead, foreperson, or equipment operator.
✔ Recognize high performers – Implement an employee recognition program to highlight safety milestones, project completions, or teamwork.
✔ Improve job site conditions—Create comfortable break areas, provide modern PPE, and maintain consistent schedules to reduce burnout.
✔ Schedule regular check-ins – Encourage supervisors to meet with crew members regularly to discuss goals, feedback, and satisfaction.
📌 Tool: Employee Retention and Engagement Guide – Practical strategies to reduce churn and create a stronger construction workforce culture.
5. HR Compliance & Payroll Management
Why It Matters
Construction businesses face frequent audits related to wage compliance, misclassification, and payroll accuracy. In 2023, the Department of Labor recovered more than $42 million in back wages for construction workers due to wage violations, which are often linked to overtime errors or incorrect worker classification.
Without proper systems, payroll can quickly become a compliance risk. Ensuring accuracy and documentation protects your business and your workforce.
Best Practices
✔ Classify workers correctly – Use DOL and IRS tests to determine whether workers are W-2 employees or independent contractors. Misclassification can lead to audits and penalties.
✔ Ensure overtime pay is accurate. Non-exempt employees must receive 1.5x pay for hours worked over 40 per week, including job site prep or required travel.
✔ Leverage payroll software – Use systems designed for construction payroll to track time by job code, automate prevailing wage compliance, and flag discrepancies.
✔ Maintain at least three years of payroll records – Include hours worked, pay rates, tax withholdings, deductions, and job assignments for audit readiness.
📌 Tool: HR Compliance & Payroll Guide – A construction-specific resource for handling wage laws, overtime, recordkeeping, and contractor agreements.
Conclusion
A proactive HR approach helps construction businesses stay compliant, improve retention, and efficiently manage projects. From forecasting your workforce to ensuring jobsite safety and accurate payroll, these five best practices lay the foundation for a safer, more productive operation.
By implementing structured HR tools and engaging with your crew beyond the jobsite, you’ll position your business for long-term workforce success.
Need tailored HR help for your construction company? Contact Targeted-HR for compliance strategies, hiring systems, and workforce planning built for the trades.