Labor management is a very expansive field of practice in which professionals rely on numerous strategies for delivering results. Keep reading to learn more about the definition of labor management as it relates to construction.
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What is Labor Management?
A labor management system provides labor productivity reporting and planning capabilities. It enables you to analyze workforce requirements based on the amount of work to be performed and the standard time needed for each task, helping you optimize labor allocation and productivity.
Based on the common definition, these activities include (but are not limited to):
- Training: Equipping your team with the necessary skills to meet your project goals.
- Recruiting: Finding and bringing in the best talent to fill crucial roles.
- Scheduling: Making sure the right people are in the right place at the right time.
- Forecasting: Predicting your future staffing needs so you can plan ahead.
- Analyzing Worker Data: Leveraging insights to understand performance trends and make data-driven decisions.
- Bargaining with Labor Unions: Navigating negotiations to ensure fair wages and conditions for your team.
In recent years, many industries have trended towards specialization. As a result, activities that once fell under the broad umbrella of labor management are increasingly being recategorized. Some (such as collective bargaining) now fall under the purview of personnel management.
Despite this shift, professionals still commonly use the umbrella term “labor management” to describe various workforce-related activities.
HOW THIS DEFINITION OF LABOR MANAGEMENT FITS INTO THE CONSTRUCTION INDUSTRY
Construction professionals typically classify labor management activities under the umbrella of workforce management.
Given how labor-intensive construction projects are, labor management within the industry requires extraordinary attention to detail and fine-tuning of logistics. Accordingly, construction management professionals typically use purpose-built software like Bridgit Bench to handle labor-related concerns like scheduling and forecasting.
Labor management job titles
Now that you know the definition of labor management, let’s briefly discuss some roles responsible for handling it.
Labor relations specialist
Labor relations specialists manage correspondence between employers and unions. Their tasks often include creating proposals and handling concerns related to compensation and workplace safety.
This role is sometimes also referred to as labor-management relations (with a hyphen).
Human resources manager
Human resource managers typically handle staffing concerns such as recruiting, interviewing, and hiring new talent. In other words, they’re tasked with human capital planning.
Human resource managers also typically address interpersonal conflicts within an organization (i.e. complaints of discrimination or unfair treatment).
Human resources technology manager
Technology is an increasingly significant part of labor management. Human resources technology managers coordinate the programs and systems staff use to handle things like scheduling workers and analyzing workforce data.
Health and safety coordinator
Health and safety coordinators ensure workers are following proper protocols related to those concerns. In construction, this work must be conducted in accordance with local health and safety legislation (such as the Occupational Health and Safety Act in Ontario).
When incidents occur on job sites, health and safety coordinators are typically responsible for producing reports detailing what happened and what’s being done to prevent future occurrences.
Time and attendance professionals
Issues like buddy punching are unfortunately common in construction. When unaccounted for, they can cause gross inaccuracies in a company’s understanding of its true labor costs.
Time and attendance professionals play a key role in catching potential issues.
Broadly speaking, time and attendance professionals make sure employees are where they claim to be.
Overview of Construction Labor Management Jobs
Here is a brief overview of the jobs in construction labor management.
| Job Title | Responsibilities | Required Skills and Expertise |
| Labor Relations Specialist | – Negotiating and administering labor contracts – Drafting proposals for collective bargaining agreements – Addressing compensation and work grievances | – Strong interpersonal and communication skills – In-depth understanding of labor laws – Ability to manage complex negotiations – Proficient in conflict resolution strategies |
| Human Resources Manager | – Recruiting and hiring qualified employees – Implementing training programs – Developing employee retention strategies – Managing employee relations | – Strong leadership and decision-making skills – Knowledge of project-based staffing needs – Familiarity with safety culture and compliance – Expertise in workforce planning and talent management |
| Human Resources Technology Manager | – Overseeing implementation of HR technology systems – Managing technology budgets for HR tools – Staying up-to-date with emerging HR technologies | – Combination of HR and IT skills – Knowledge of HR software and technology integration – Strong analytical and technical skills – Ability to collaborate with other departments on technology implementation |
| Health and Safety Coordinator | – Conducting safety inspections – Providing safety training – Investigating workplace incidents – Ensuring compliance with health and safety regulations | – Deep understanding of safety regulations (e.g., OSHA) – Ability to develop safety policies and procedures – Strong attention to detail and investigation skills – Ability to foster a safety-first culture on job sites |
| Time and Attendance Professionals | – Managing time tracking systems – Monitoring work hours and attendance patterns – Ensuring compliance with labor laws related to work hours and overtime | – Strong organizational and analytical skills – Knowledge of time tracking software – Familiarity with payroll and labor cost management – Ability to work with project managers to coordinate labor hours across various projects |
Objectives and best practices for labor management professionals
Next, let’s look at the goals of labor management along with the best practices professionals employ to achieve them.
TAKING STEPS TO HIRE THE RIGHT WORKERS
To those outside labor management, this may seem like a laughably simple objective. However, those tasked with the job recognize how challenging it can be.
Thankfully, many resources exist to help construction workforce managers with staffing. Check out this post for a solid list.
Of course, hiring good workers is only half the battle. Labor management professionals are also tasked with retaining those employees (aka limiting turnover) through human capital planning strategies like compensation and benefits analysis.
OVERSEEING WORKFORCE DEVELOPMENT AS PER YOUR GOALS
The construction industry is constantly changing. New technologies and processes routinely emerge, which necessitates ongoing training. This training typically falls under the purview of labor management.
One best practice associated with workforce development is the creation of personal development plans. Every worker has a different skillset and background. Personal development plans keep everyone engaged in their progress.
Professionals often view this objective as being all about helping workers create careers at an organization, not just jobs.
KEEPING YOUR WORKERS ENGAGED AND FULFILLED
The art of keeping workers engaged goes even further beyond personal development plans.
Best practices regarding this objective include assigning workers challenging yet rewarding tasks that fully utilize their skills.
It’s also important to have a strategy for promoting good workers and pushing bad ones out of the organization. Tools such as the nine-box grid are commonly used for this purpose.
KEEPING UP WITH COMPLIANCE REQUIREMENTS
All workplaces have compliance requirements regarding safety and conduct.
In construction, accordance with these requirements can quite literally be a matter of life and death given the risks involved.
Safety coordinators are typically the labor management professionals responsible for addressing these risks.
Monitoring and streamlining labor cost calculations
A construction company’s workforce is easily among its most valuable assets. That comes at a high price, though.
Beyond a worker’s salary, they get paid benefits, receive paid sick days off, etc. These expenses all need to be tracked. Labor management professionals (i.e. time and attendance coordinators) are invariably involved in this process.
If labor costs are unreasonably high relative to productivity, these professionals will ultimately have to figure out why and make adjustments as necessary.
Maintaining a productive work environment
Labor management professionals play a large role in setting a workplace’s tone and culture. This isn’t something to take lightly; research indicates happy workers are 13% more productive. That can mean incredible things for a company’s bottom line.
At the end of the day, it’s also just nice for everybody – including labor management professionals and owners – to work in a nice, happy environment.
There are many best practices associated with maintaining a happy work environment, including:
- hiring positive people
- encouraging team building (especially important in construction given the collaborative nature of work)
- demonstrating care for employees
- encouraging a healthy work-life balance
We hope this guide has helped you arrive at a meaningful definition of labor management.
To summarize, activities under this umbrella term typically include anything to do with managing a company’s workforce.
While aspects of labor management are increasingly being recategorized in a more specialized way, this umbrella term is still commonly used, including in the construction industry.
For more construction workforce management-related definitions and best practices, visit our blog.
FAQ: Labor Management in Construction
Why is labor management important?
Labor management is crucial for keeping construction projects on schedule and within budget. It ensures the right team is in place, minimizing delays and optimizing productivity across the project.
What is a labor management system?
A labor management system is a software tool designed to streamline workforce-related tasks like scheduling, tracking hours, and ensuring compliance. It provides construction managers with real-time insights into their workforce, helping them make informed staffing decisions.
What does a labor manager do?
A labor manager plays a key role in overseeing workforce operations, ensuring that staffing levels meet project demands, managing labor costs, and addressing any workforce-related challenges that arise to keep the project running efficiently.
What is labor productivity in construction?
Labor productivity in construction refers to how much work your crew accomplishes in a specific time period. It’s an important metric for gauging the efficiency of your workforce and identifying areas for improvement.
What’s the difference between labor productivity and labor efficiency?
Labor productivity measures the output of work completed, while labor efficiency focuses on how well resources (like time and labor) are utilized to achieve that output. High productivity shows a lot of work is being done, but high efficiency ensures that it’s being done in the most effective way.
