The Ultimate Guide to Human Resources for Construction | hh2.com

5 Construction HR Trends to Watch in 2025

Written by hh2 | Jan 9, 2025 4:30:00 PM

Construction companies are embracing digitalization thanks to new technology and automation. They’re also facing new market rules and regulations, adding to the complexity of maintaining compliance. Additionally, the industry is still facing labor challenges and a shift in demand, forcing businesses and HR departments to rethink their approach.  

These and other emerging trends are rapidly changing how HR professionals in the construction industry are doing their jobs. Staying ahead of the competition now requires innovative HR solutions that are tailored for construction, such as hh2.  

Adopting construction-specific software can help your construction company streamline HR operations and meet industry-specific demands, like safety compliance and managing a mobile workforce. Learn more about the changing trends for HR in construction and how you can overcome these new challenges below. 

1. Reducing Administrative Tasks and Increasing Productivity Through Automation 

The growth of automation features in software and other digital tools is changing how HR professionals handle their day-to-day responsibilities. You can now automate administrative and other repetitive, manual tasks, which helps speed up processes and reduce human errors involved in data entry.  

For example, construction HR teams can use software to automatically calculate wages or overtime and manage the payroll process. Automation can also help you handle compliance checks, ensuring you follow all regulatory requirements. It reduces the administrative burden of tasks such as onboarding new employees, conducting performance evaluations, and other workplace management responsibilities.  

hh2’s HR construction solution incorporates automation to streamline your HR process and keep your team aligned. You can also use hh2’s HR software to help evaluate and manage employees more effectively, as you’re always seeing the most up-to-date information. Freeing your HR team up from manual, time-consuming tasks through automation improves their overall productivity and allows them to focus on higher-value work.  

2. Embracing Technology to Manage Safety and Compliance 

Tracking your construction company’s safety and compliance is more important than ever as regulations become more stringent. Since the start of 2024, OSHA has required all construction companies with 10 or more employees to record and electronically submit any serious work-related injury and illness information on an annual basis through their Injury Tracking Application. Its purpose is to better understand workplace hazards to reduce risks and future injuries throughout the construction industry. Failing to properly record or report this data can result in significant fines for each violation, which OSHA calculated by severity.  

With hh2, safety training and certification are part of each employee’s record, enabling real-time compliance tracking and automating safety certifications so HR teams can maintain these standards effortlessly. The software makes it easier to assign and track certifications and safety training for individuals, groups, or at an organization-wide level. You’ll even receive a notification when a certification is about to expire so you can take proactive steps.  

3. Growing Mobile-First Construction Solutions  

The construction industry has a higher level of need for mobile-first HR tools than others due to its field-based, remote, and hybrid workforces. A digital tool that works well in the office may not be accessible out in the field or to remote workers. Additionally, your HR team is tasked with managing employees at various locations. Without the right solutions in place, it’s difficult to gain access to the right data and make informed decisions. 

A mobile-first solution like hh2 eliminates these problems, helping your HR team stay connected and aligned, whether they work in the office, out in the field, or remotely. Our cloud-based apps allow you to access information from anywhere using mobile devices or computers.  

It centralizes employee data for better management and syncs with your ERP and accounting systems to keep HR and other departments on the same page. Plus, it allows your employees to retrieve documents, complete onboarding, and submit their time directly from job sites, improving workplace satisfaction and productivity for everyone involved. 

4. Data-Driven Decision-Making and Predictive Analytics 

HR departments can become siloed, which is why centralized data management is key. It gives you access to all of your company’s employment data for a comprehensive view, which is essential for understanding your work environment and the employee experience to make informed decisions.  

More construction companies and HR teams are adopting a data analytics practice and using data to better understand workplace sentiment and transform how they create and evaluate the performance of HR initiatives. For example, HR staffers can measure and track numerous HR metrics, including: 

  • Employee retention rate 
  • Turnover rate 
  • Demographics 
  • Employee satisfaction from feedback surveys 
  • Absenteeism 
  • Quality of hire 

Using data can help your HR team understand what’s working and fine-tune their approach in order to meet company goals. And with analytics tools now incorporating AI and machine learning, construction companies can take advantage of predictive analytics, which generates insights using their current and historical data. It not only shares how things are now but also predicts future trends. Data and predictive analytics allow your HR team to develop data-driven staffing, training, and workforce planning strategies to help meet your labor goals and prepare for how things may change in the future. 

5. Strengthening Retention Through Employee Engagement and Training 

The construction industry as a whole is still dealing with a skilled labor shortage, which isn’t expected to be resolved in the near future. This challenge is forcing HR departments to focus more efforts on improving employee experience and retention to reduce attrition and prevent project delays.  

To improve their experience, you first need to understand how employees feel about your work environment. Consider using anonymous surveys to gain critical insights about how your employees feel and identify points of frustration you can work to resolve. Additionally, your construction company may want to create or promote existing professional training opportunities, so workers can develop new skills and potentially fill skills gaps within your company. 

Your HR department can also use engagement opportunities to encourage a healthier, more productive environment and increase employee satisfaction to foster loyalty. Simple initiatives like recognizing worker success, holding casual company events, or encouraging open communication can help make employees feel valued and heard.  

Embracing the Future of HR with hh2 

hh2’s construction-specific platform is built to meet your evolving needs. Our HR solution, Employee Data Management Software, stores all your vital employee data in one centralized location for greater visibility. It enables you to more easily track certification and training information and evaluate employee performance, even in the field. Plus, hh2 offers automation tools that help speed up HR workflows, resulting in more accurate and efficient HR processes.  

Want to prepare your HR team for the future of construction? Schedule a demo of hh2 HR today to explore hh2 as a solution built to scale with and future-proof your construction business.