Understanding construction employee leasing services

Helping to create opportunities for multiple projects

Written by Anastasia Zoldak

Imagine having multiple bids out for projects and not worrying that your construction company might win them all. In a competitive environment, construction businesses are faced with the difficulties of increased labor costs and the pressure to stay within – or below – set budgets. Innovative companies look for ways to increase productivity while lowering expenses, including construction employee leasing services.

To maintain profits and productivity in construction, a flexible workforce is needed. As with any cyclical industry, there are times when the cost of keeping a workforce is prohibitive while, at other times, the demand for services outstrips workforce availability. Construction employee leasing firms are a viable and cost-cutting solution to this problem.

Benefits of a construction PEO

Professional employee organizations (PEO) offer a cost-effective alternative to hiring permanent employees. Leveraging services from a construction PEO is one way to stabilize and increase flexibility in the workforce.

Construction PEO firms offer construction companies the ability to outsource labor and all the costs and responsibilities related to having employees. The flexibility of getting employees "as needed" allows companies greater flexibility in bidding for multiple projects. Human resource responsibilities such as payroll, worker's compensation, and other employee-related responsibilities are overseen by the construction PEO, lowering expensive administrative costs for the construction firm.

What to expect

Most construction PEO firms require just one payment to cover all employee-related expenses. Their services should include complete payroll and human resources management, including unemployment claims. Any employee benefits will be issued through the construction employee leasing firm. Contracting should be flexible to allow workforce increases or decreases depending upon the project's progress.

A flexible workforce

The most attractive aspect of hiring construction employee leasing firms is their ability to provide experienced employees quickly and efficiently. These firms assure their clients that workforces brought on to sites are thoroughly screened and checked and ready to be put to work. Once the job is finished, the workforce can be let go without ramifications to the construction company: the construction company faces no financial burden related to the termination of employees.

A flexible workforce also allows construction companies to bid on multiple projects at once without worrying about having enough employees. This offers companies greater flexibility with finding new sources of revenue.

Selecting a construction PEO

Prior to outsourcing construction resources, companies must evaluate what their needs and issues are in relation to managing their employees. Once this has been defined, the company will have a better perceptive on the various services it will need as it interviews each construction PEO.

Since construction employee leasing firms work by taking over a company's workforce responsibilities, it’s important to make sure the construction PEO hired acts in accordance with all government regulations. The National Association of Professional Employment Organizations offers a national directory to make the search for a reputable construction PEO easier.

Accreditation with the Employer Services Assurance Corp. (ESAC) is also important because firms accredited through ESAC must pass a vetting process. This assures companies that the firms they have hired will have the experience to meet their financial obligations and employment needs.

Competitive markets and expanding costs can make if difficult for construction firms to win bids and remain viable. Construction employee leasing firms give companies a competitive edge and help increase their profitability.

Ready to get the staffing assistance your construction business needs? Use BuyerZone’s free request for construction employee leasing price quotes, and we’ll match you to multiple PEO Services in your area.