In its Reinventing Construction: A Route to higher productivity report, The McKinsey Global Institute highlighted the intractable productivity issue in the construction industry. Just like retail and manufacturing, the construction industry largely depends on manual labor.
While the other two sectors have turned innovative & reinvented themselves, the construction industry continues to still work on old practices.
According to the global Construction productivity report, construction labor productivity has averaged only 1 percent annually over the past two decades. In comparison for the same period, the global labor productivity for manufacturing was 3.6 percent. The McKinsey report thus underlines the need for reinventing how a construction workplace functions.
If your construction workplace suffers from poor productivity issues, you should look at alternative solutions that can help boost productivity.
Here, we explore how construction labor productivity can be improved sustainably.
Table of Contents
What are the factors affecting Labor efficiency?
1. Workplace environment & employee wellness
Take a hard look at your construction workplace to determine how the work environment is. If the workplace environment is based on putting pressure on employees with unrealistic deadlines and long work hours, then in the long run, it would not make employees feel safe, valued, and supported. In the long run, labor productivity will suffer and attrition would increase.
A positive workplace environment and employee wellness go hand in hand. Companies with open communication, straightforwardness, and cooperation in their workforce management can help build high employee morale.
2. Pay Structure
Pay is the primary motivator at any workplace and the construction industry is no different. Due to the nature of work, construction workplaces tend to hire many contract workers.
Treating such workers differently from full-time employees isn’t uncommon in organizations. Yet, sometimes, such discrepancies can be a significant reason for declining construction productivity.
If the company is maintaining an optimum pay structure for its employees, then the company should make its workers aware of how the pay structure works, as it can be one of the reasons behind why employees are not motivated to give their best.
3. Employee Diversity
A lack of employee diversity can also be one of the reasons for poor labor productivity in the construction industry. Diversity in the workforce is essential for employee engagement. Construction work employs many workers, and hiring people with distinctive qualities, cultures, and religions can give workers a sense of belonging.
Furthermore, employee diversity is the best way to create an environment for workers that makes them learn and excel with people with different perspectives.
4. Lack of assistive tools and technologies
Employees will need tools and modern technology to be productive. In the construction industry, where tasks require a lot of hard work, providing workers with the correct tools directly impacts productivity.
For instance, if workers have to do demolition work without proper tools, it can take weeks, while the same work can be completed within a few days by using power tools.
Also, companies must invest in training employees on using tools and technology at the construction workplace. Untrained employees not only delay the work, they also cause resource mismanagement. This can further have productivity and financial implications.
Ensure that your construction workplace doesn’t have these productivity roadblocks. If you need to learn how to start, here are ten tips to boost construction productivity.
10 Tips to improve construction productivity
1. Update construction inventory all-the-time
Construction projects have a large inventory, which needs regular updating. Poor management of inventory is one of the reasons why projects get delayed.
You cannot depend on the workers to notify you about the shortage of construction materials or tools; project managers and supervisors must always proactively do inventory audits. It immediately ensures that the required construction materials, tools, and assistance are available at the construction site.
Use tools for proper planning and forecasting so that building materials and supplies are regularly restocked before they run out. It will help improve labor productivity in construction industry.
2. Use technology to create better workflows
Construction efficiency can be boosted directly by implementing technological improvements in the workplace. Remember the 1 percent labor-productivity rate McKinsey reported every year is primarily because of poor adoption of modern technology in the construction industry?
Construction companies can streamline project workflows, identify productivity issues, and deploy solutions much faster using technologies like project management software. It can also improve productivity by automating employee attendance using time and attendance system.
Software products can optimize workflows, improve workforce management, centralize documentation, and reduce manual reporting thus considerably boosting your team’s productivity and in the end, construction output.
3. Focus on workplace flexibility
Workplace flexibility can be a contributing factor for boosting productivity. Construction work is labor intensive, so you must ensure workers are adequately rested. Employees with optimum physical and mental health are in the best shape to operate machinery and tools and this has a profound impact on construction productivity.
Create flexible work shifts allowing workers to have a better work-life balance. It also reduces pressure at the workplace and attracts more candidates.
4. Focus on employee training and development
For any industry, investing in the workforce’s skills is essential. The construction industry is no exception. Regular training and upskilling sessions can help enhance your employees skills, build their confidence and motivate them to further improve their overall quality of work.
5. Invest in construction planning
Construction planning is imperative for companies to identify potential bottlenecks before the start of any project. A well-structured plan leads to higher productivity at the construction site while minimizing last minute hiccups and allowing for better resource allocation.
Proper construction planning will allow you to deliver building materials through shorter routes and also can also help optimize the use of inventory and storage space. This ensures timely availability of building materials and supplies at the site thus preventing delays.
6. Integrate data and analytics in the construction
Construction projects generate a lot of data that can be effectively used for collaboration and insights through data analytics.
Most of the data at construction sites is not checked and analyzed, leading to poor project management and efficiency. With the right platform and tools, you can utilize data and analytics to monitor project progress, identify labor inefficiencies, and make informed decisions. Integrating data and analytics in construction is a data-driven approach for better project management.
7. Hire trained supervisors & managers
Competent supervisors and managers at the project site ensure that operations run smoothly and workers are not facing any productivity issues. When the leaders know how to get things done, other employees don’t have to face issues at the site, which keeps the project going without any delays.
Trained managers have the skills and experience to ensure that tasks are allocated effectively, task deadlines are met, and problems are promptly addressed.
8. Set realistic goals
We understand the requirement to deliver project fasters, but you must set realistic goals. Take time to analyze the available resources and manpower and compare it with the project deadlines to set realistic goals for teams. Also, you can use project management applications to leverage data collected at various sites to create accurate team deadlines.
You might have the best workforce, but their productivity is still limited, so setting realistic goals will put an end to undue pressure and mental stress. Best managers set attainable goals for workers to encourage employees and boost their productivity levels.
9. Offer employee recognition
Recognizing and appreciating the efforts of your workers fosters construction productivity. Your employees need your positive feedback and recognition of their hard work to know their commitment to their work is valued. It boosts morale and encourages higher levels of commitment and productivity.
Offering incentives in the form of rewards can be a great way to show appreciation for their hard work.
10. Go for shorter construction contracts
Construction contracts with ambiguous terms and legal jargon can be difficult for teams to understand. How can you expect construction productivity to be high if the teams cannot understand the project outline? Create clear and concise construction contracts of short length so workers know what they are supposed to do and perform accordingly.
Short construction contracts ensure all team members are on the same page with clarity. It eliminates the need to rework contracts, saving a lot of cost and time.
What are the factors affecting Labor efficiency?
1. Workplace environment & employee wellness
Take a hard look at your construction workplace to determine how the work environment is. If the workplace environment is based on putting pressure on employees with unrealistic deadlines and long work hours, then in the long run, it would not make employees feel safe, valued, and supported. In the long run, labor productivity will suffer and attrition would increase.
A positive workplace environment and employee wellness go hand in hand. Companies with open communication, straightforwardness, and cooperation in their workforce management can help build high employee morale.
2. Pay Structure
Pay is the primary motivator at any workplace and the construction industry is no different.
Due to the nature of work, construction workplaces tend to hire many contract workers. Treating such workers differently from full-time employees isn’t uncommon in organizations. Yet, sometimes, such discrepancies can be a significant reason for declining construction productivity.
If the company is maintaining an optimum pay structure for its employees, then the company should make its workers aware of how the pay structure works, as it can be one of the reasons behind why employees are not motivated to give their best.
3. Employee Diversity
A lack of employee diversity can also be one of the reasons for poor labor productivity in the construction industry. Diversity in the workforce is essential for employee engagement. Construction work employs many workers, and hiring people with distinctive qualities, cultures, and religions can give workers a sense of belonging.
Furthermore, employee diversity is the best way to create an environment for workers that makes them learn and excel with people with different perspectives.
4. Lack of assistive tools and technologies
Employees will need tools and modern technology to be productive. In the construction industry, where tasks require a lot of hard work, providing workers with the correct tools directly impacts productivity.
For instance, if workers have to do demolition work without proper tools, it can take weeks, while the same work can be completed within a few days by using power tools.
Also, companies must invest in training employees on using tools and technology at the construction workplace. Untrained employees not only delay the work, they also cause resource mismanagement. This can further have productivity and financial implications.
Ensure that your construction workplace doesn’t have these productivity roadblocks.
Conclusion
In the construction industry, competition is high. The sure way to remain profitable is to keep construction productivity benchmarks higher than your competitors. One must pay attention to the issues in the construction workplace that might be preventing workers from giving their best at work.
Utilize technology and data analytics for project planning to identify productivity bottlenecks before they become an issue. Train your workers continuously and provide them with the tools to improve their output.
FAQs
1. What affects construction productivity?
Several factors can affect construction productivity at a site. Skill and experience of the employees affect productivity as more skilled workers tend to be more efficient and produce higher-quality work.
The use of advanced tools and equipment can significantly impact productivity as these tools boost worksite productivity at far. Inventory management, project planning, pay structure, and workplace flexibility are some other factors that affect productivity.
2. What is Labor efficiency?
Labor efficiency measures how effectively and productively workers complete tasks within a given timeframe. It is used to evaluate how well the labor resources at a construction site are utilized. The higher the labor efficiency, the more productive workers are.
