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Managing a workforce can be a never-ending parade of challenges, from hiring and onboarding to providing year-end tax documents.

Paired with working in multiple states and meeting federal and union wage requirements, it can be tough for administration to maintain accuracy for their workforce management systems.

Different admin groups are responsible for specific elements of workforce management, such as human resources (HR), payroll and labor management. If these groups are not organized strategically, miscommunications and an incompatibility of systems can lead to drawn-out inefficiencies.

Human Capital Management (HCM) is a way to help curb these challenges, as a strategy to streamline the connection between all core administrative systems.

Third-party admin software can be offered as either a single program or as a variety of individual software products that can integrate to maximize efficiency.

For example, a construction company might only want payroll software, but it could later be integrated with its sister solutions, like HR and labor management to form a robust HCM network.

What is Human Capital Management?  

Human capital management is the collection of strategies to manage all aspects of employee work. From HR to worker tracking, HCM is designed to optimize productivity.

Because HCM applies to a broad range of applications, it can benefit many different administrative elements, including:

• Recruitment and onboarding
• Payroll, such as year-end taxes
• Labor tracking (time and attendance)
• Employee training
• Compliance reporting
• Retirement and benefits

As a practical example:

A construction company has a variety of full-time, seasonal and union workers that perform work on projects in different places and at different times. Onboarding new hires and ensuring correct wages, taxes and regulations can be overwhelming. By outsourcing admin systems to create an integrated human capital management system, the company can leverage advanced software programs to meet these challenges.

In sum, human capital management is designed to align all these complex aspects of workforce management to keep a company productive and stable.

Human Capital Management in the Construction Industry

For construction, HCM is particularly useful, integrating the core administrative elements of payroll, HR and labor to eliminate communication silos.

Managing a large workforce, especially across different states, can be chaotic. Implementing HCM helps keep things organized, centralizing and sharing data across all admin systems.

This encourages all worker information (hours, pay rates, and compliance) to flow seamlessly through each solution, with little risk of communication error or delay.

Benefits of Implementing HCM Into Construction Payroll

According to research, the benefits of implementing HCM are very clear from a financial perspective, saving companies 90% in ongoing maintenance, thanks to automation and third-party efficiency.

Using payroll software for HCM allows companies to:

• Automate wage calculations, disbursements and government tax filings.
• Manage reports for certified payroll and unions.
• Record and consolidate payroll data, such as worker benefits, wages and hours.
• Increase payroll accuracy.
• Ensure compliance with local, state and federal regulations.
• Manage outgoing workers and incoming new hires.

Payroll can also be integrated with other core administrative systems, such as HR and labor management, tying everything together under the strategy of HCM, saving companies valuable time and money.

Developing a Human Capital Management System

Because HCM acts as an umbrella term applying to many facets of administration related to employee operations, it is important to know exactly what you need when outsourcing.

Construction-specific providers will offer multiple software programs, each geared toward their respective focus: payroll, HR and labor management. Most benefits come from packaging these software systems together under the same provider, as opposed to outsourcing between multiple providers.

When all software products are within the same family, HCM will become far more effective. All programs will be designed to collaborate with each other, with uniform user interfaces.

When building out your HCM, be aware of your company’s needs. It is important to identify valuable software features, such as:

• Employee self-service, such as a mobile application
• User-friendly interface
• Data protection/security
• Cloud backups
• Real-life customer support
• Scalability

All these features can apply to each individual software product, whether it be HR, payroll or labor tracking, and when grouped together, they form a power human capital management network.

Manage Your Workforce With Payroll4Construction’s Human Capital Management

Managing a robust workforce is not easy. Companies may get overwhelmed by trying to sustain workers throughout their employment, from their first day to their first W-2.

On top of that, meeting complex regulations for varying jurisdictions and labor laws can make handling a spread-out team of workers very complex. Human capital management helps to alleviate these pains.

To create a HCM system, multiple software programs for payroll, HR and labor tracking can be packaged together under the same software provider. This promotes a streamlined connection between systems that helps optimize productivity.

If your company’s payroll system is lacking, advanced payroll software can boost your human capital management with key features like automated calculations for wages and taxes, certified payroll reporting and record keeping for all payroll data.

Even if you’re only interested in payroll, a provider could still offer sister programs in the same family that could be integrated as needed.

If you think your company is ready to begin building out their HCM, start with Payroll4Construction, along with its associated software products for HR and labor management.

To learn more, contact a specialist today!