MANAGING LABOR COSTS WHEN YOU’RE SELF PERFORMING (06/01/2009)

By Shannon Kahn, CLP Resources, Inc.

 

The recession has encouraged many contractors to self perform since it can mean more control over schedules and budgets. However, the money you’re saving could be lost if you have to hire a crew and find work to keep them busy. Using a staffing company that specializes in the skilled trades could be the answer you’re looking for. You maintain supervisory control, but you only pay for your workers when you need them.

 

The right construction staffing partner can help you bid to win more business, keep your overall labor costs in check and help you reduce the risks that come with being an employer. The key, of course, is to make sure you’re using the right staffi ng company for your needs.

 

Here are some tips on choosing a construction staffing partner:

·         Be sure your construction staffing partner is financially sound enough to survive the recession. You don’t want to be left holding a bag of outstanding debts if they go out of business.

·         Make sure your staffing partner is current on local, state and federal employment requirements, including:

o        Compliance with wage determination, reporting requirements and certified payroll on Prevailing Wage jobs;

o        Title VII of the Civil Rights Act, which says it’s unlawful to discriminate based on race, color, religion, sex, national origin or pregnancy;

o        Age Discrimination in Employment Act, which says it’s unlawful to discriminate in hiring, wages, working conditions or benefits based on employee’s age;

o        Americans with Disabilities Act, which says that qualified employees must be given reasonable accommodation;

o        E-verify programs, to determine employment eligibility of new hires and the validity of their Social Security Numbers;

o        Transportation Worker Identification Credentials (TWIC), a common identification credential for all personnel requiring unescorted access to secure areas of MTSA-regulated facilities and vessels;

·         Your staffing partner should be doing the legwork for you, before they send a tradesperson to your jobsite. This should include:

o        Skills testing;

o        Tool checks;

o        Drug tests and background-checks;

·         Make sure your staffing partner is a true employer of the skilled tradespeople and not passing off contract labor as employees.

o        Verify that the staffing agency is responsible for worker’s comp and unemployment taxes so you’re not liable in the event of an injury or accident at your jobsite;

·         Make sure your staffing partner understands your business and your corporate culture, so you get tradespeople who fit in with the rest of your crew;

·         Partner with a company that offers a service guarantee, so you have some recourse if a tradesperson does not meet your expectations.

 

If researched properly, construction staffing companies are a great resource, especially in an economy like this. Why man-up when you don’t know what the future holds? And taking the “managing people” part out of your job description leaves you with more resources to focus on getting more projects, increasing your profitability and growing your business.

 

Shannon Kahn is the Regional Director for CLP Resources, Inc.’s Pacific Northwest Region. She can be reached at skahn@clp.com.


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