Companies looking to grow in 2023 face fierce competition and a questionable economic landscape. Adding fuel to the fire is the trend toward increased compliance enforcement which is happening at the federal and state level. These challenges don’t have to become a roadblock on your path to growth if you leverage the right tools.
One of the best tools a prevailing wage construction company can use to become more competitive is software. The right software can make the difference between being competitive or losing bids. It can also provide business insights that help you better understand the health of your business, the state of your workforce and areas that may need improvement.
For construction companies that work on public works projects, having certified payroll software is a game changer. If you don’t see how software could help you grow, you may want to consider the following critical advantages it has to offer.
Become more efficient: Being efficient is always important, but for smaller construction companies trying to create momentum, it is vital. This is where certified payroll software comes into the picture. By reducing manual tasks, unifying processes and tightening up your procedures, your team will become a well-oiled machine. This can be especially important for prevailing wage construction organizations due to the added administrative burden attached to every government contract. This means your current team will be able to handle growth so you don’t have to staff up right away just to take on more work.
Reduce busy work: Prevailing wage projects come with extra administrative work. This work is time consuming and mistakes leave you out of compliance and at risk for legal action. Most payroll software is inadequate to handle these prevailing wage-specific tasks. In fact they often force companies to repeat steps and manually enter information into official reporting formats. Certified payroll software can fix this because it understands the unique payroll and reporting needs and makes required tasks quick and easy. This frees workers up from busy work and allows small companies to take on more work without needing to hire additional office staff.
Simplify reporting: Reporting takes on a new degree of difficulty for government contractors. Certified payroll reports are a weekly occurrence and rely on accurate data from your time and attendance system. This goes beyond hours worked each day to include hours worked in various job classifications by project and project-specific wage rates. Additional reporting is often required for apprentices, non-performance weeks and may be required to both the government and the prime contract holder. Certified payroll software with robust reporting features can shave many hours off the workweek so it’s easy to keep up and stay out of trouble.
Employee retention: Nobody likes seeing mistakes on their paycheck or dealing with clunky time and attendance processes. Since prevailing wage projects require workers to capture changing work roles throughout the day, just tracking time can be cumbersome. If you’re using handwritten time cards, it’s just about impossible to track hours and roles accurately. This forces payroll teams to contact workers to verify time, correct mistakes or even just to decipher sloppy handwriting. It’s easy to see how mistakes make their ways to paychecks and official reports under these conditions. Having a system in place designed for public works projects can dramatically improve the experience for teams, reducing employee churn both in the office and field.
Onboarding new software does come with front-end costs and a learning curve, but the long-term gains are significant. For government contractors hoping to win more bids, having software that’s been specifically created for the construction industry is a make-or-break situation. Not only can it dramatically improve your company’s operations, it allows your current staff to easily handle the added work that comes with additional government contracts.
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.