Hiring new staff feels like part of the natural progression for a business with growth aspirations.

But what’s sometimes forgotten is how expensive it can be to bring in new people.

The total costs of hiring a new employee – when soft costs such as time invested in training are considered – can be upwards of $23,000 per worker, according to research from HRM, the news site of the Australian HR Institute.

And it’s not the only way to improve the bottom line. Construction businesses that want to increase profits can make just as much progress investing in systems, technologies and processes that increase efficiency, reduce errors and improve planning, rather than hiring additional team members.

Embrace advanced technology 

Digital transformation in the construction sector leads to significant productivity gains and cost reduction. New technologies continue to redefine the construction process, providing construction businesses with streamlined operations and more profitable ways of working.

Project management software solutions provide a good example of how advanced technology can reduce errors and the time spent on rework. Construction technology software offers users real-time data and advanced modelling, improving estimates, project management, production and inventory control.

When technology streamlines these processes, errors previously caused by miscommunication or information silos are nipped in the bud. Staff spend less time correcting errors and more time on activities that generate value.

Optimise workflows and processes

According to the Australia Constructors Association, “The key to lifting national productivity is improving the performance of the construction industry.”

An ideal solution is to optimise workflow and processes, especially for contracting businesses with antiquated, inefficient methods of sharing information and managing projects.

Automation plays a role by removing menial, repetitive tasks. This process comes with the added bonus of automated tasks being much easier to track, document and report on, giving businesses a chance to evaluate results and improve. Manual tasks, on the other hand, are often subject to human error and can be more challenging to track.

Automation optimises workflow and processes so employees are not spending time on dull, repetitive, tedious work that is prone to errors. This could mean that rather than hiring a new employee, a business could direct an existing one to a task more likely to push the needle.

Enhance planning efficiency 

By nature, planning in the construction industry is a complicated process, requiring precision analysis and a significant investment in time. The planning phases become even more complicated when the goalposts change, an error is picked up or new project stakeholders are introduced.

To make the right decision for a project, contractors typically need:

• accurate data
• reliable status updates
• the ability to make changes

Advanced technology, such as project planning and management software, offers contractors the tools to access the data required to make the right decision, understand the progress of a project and minimise errors that would typically result in hours wasted on rework.

This technology makes it convenient for project team members to quickly view and understand a change order without the need to check with someone else. By keeping all relevant project information in one central location, contractors eliminate inquiries so information can flow freely to all project stakeholders.

Invest in training and development

Hiring new staff as a default solution to solving the productivity woes of a construction business also risks missing the opportunity from existing employees.

Investing in training and development of existing employees can be 73 per cent less expensive than bringing new staff on, according to research from the Mechanical Contractors Association of America. The beauty of modern construction management platforms is how easy they have made the development of existing staff through ongoing training and support.

Many contractors are pleasantly surprised to discover that these platforms don’t come with the big learning curve they previously anticipated. Instead, the software is intuitive and quickly achieves the return on investment.

Leverage structural analysis and design 

Another area where investment in technology and process, rather than people, comes to the forefront is structural analysis and design. The automation of this high-level analysis frees contractors up to focus on other concerns, such as safety, profitability and sustainability.

Automation provided by construction management platforms deliver a host of benefits through detailed insights and accurate simulations, including:

• the ability to automate a rationalized design in seconds and share meaningful reports, schedules and drawings with project partners in minutes;
• better data sharing and situational analysis;
• automatic as-built comparison to make changes easier to manage.

Pathway to profits 

Hiring new employees is sometimes necessary, but it isn’t the only way to increase profits. In many cases, it can be far more effective to invest in technologies and processes that lead to smarter, more effective ways of working.

By Chamika Ingilizian, Trimble

Chamika Ingilizian is manager, professional services, at Trimble. She helps Trimble construction customers in the APAC region refine challenging business processes through connected construction software solutions.