According to the Home Builders Institute’s 2024 Marketing report, over 8 million construction workers are on payroll, with almost 3.5 million working in residential construction.
That’s a lot of employees (and time sheets) to track, categorize, and correct when mistakes happen. Whether residential, commercial, or government-contracted, ensuring your field teams can quickly and accurately enter labor hours is a necessary but challenging feat.
Aside from the hassle of trying to keep multiple job sites and job codes straight when reviewing workers’ hours, manual or analog time tracking and payroll systems can put you at risk of buddy punching or ghost employee fraud, which can threaten your revenue (and reputation) generation.
However, automating your time-tracking process with geofencing can eliminate those problems, ensure compliance, improve communication, and speed up your payroll processing by 70%.
The core of payroll efficiency is automation, and Geofencing is a feature of construction payroll solutions that works via GPS technology and RFID (Radio Frequency Identification.) Construction firms can use Geofencing to establish a virtual perimeter (fence) across a (real-life) construction job site or restricted area.
Once workers download the companion app on their mobile device, the Geofence automatically detects and records each time an employee or piece of equipment enters and exits the geofenced zone.
Thanks to construction site Geofencing, employees no longer have to input their labor hours, and your payroll specialists no longer have to enter, organize, and chase down timesheets manually. Additionally, this gives you more oversight regarding safety and compliance by sending real-time alerts for unauthorized access, equipment movement, or safety violations.
Construction workforce management software can revolutionize operational efficiency thanks to automated time tracking for construction teams. From convenience and accuracy to compliance and safety, Geofencing’s simple digital barrier improves functionality throughout your business.
While the construction industry tends to prefer analog processes, GPS tracking for construction is an advantage you can’t afford to omit if you want to scale efficiently.
Geofencing and GPS tracking for construction reduce the risk of time fraud and provide additional job site security solutions that improve work site safety.
Geofencing in construction isn’t just about preventing nefarious activity. It also offers the invaluable benefit of protecting you from compliance violations, especially if you work with certified payroll, prevailing wage, and substantiated billing.
The following table further illustrates the advantages of integrating automated Geofencing in construction, compared to manual data entry and other digital (more widely known) options.
While it's ultimately up to you to determine which option is best for your business, strategically implementing construction workforce management software can actually be a cost-saver, especially if you choose industry-specific solutions like hh2.
|
Feature |
Geofencing |
Manual Timesheets |
Badge Swipe Systems |
|
Accuracy |
✅ High |
❌ Prone to errors |
✅ Moderate |
|
Security |
✅ Strong |
❌ Low |
✅ Moderate |
|
Automation |
✅ Full |
❌ None |
❌ Limited |
|
Compliance Support |
✅ Strong |
❌ Weak |
✅ Moderate |
How hh2’s Mobile Workforce Solutions Use Geofencing On A Job Site
Thanks to its scalability, Geofencing tech is an ideal investment for construction businesses of any size. Whether you’re a new general contracting team or an established firm, you can grow at your own pace with hh2’s Geofencing and Remote Payroll technology, ensuring accurate time tracking, a more fluid workflow, and on-time paycheck delivery.
Cloud-based software offers additional flexibility because it allows your field managers to monitor workforce movement in real-time to identify security, safety, and fraud risks as they occur.
Geofencing in construction isn’t just about job site productivity; implementing software like hh2 creates a more efficient back office experience via automated reporting for payroll processing and compliance audits.
Due to the labor force fluctuations, frequently changing policies, and the rapid evolution of technology, construction companies in 2025 can’t afford to get left in the analog age.
While an influx of technology can be a double-edged sword, a
strategic software partner lets you enhance job site security and efficiency via automation and AI without sacrificing quality — or your human workforce.
With scalable technology like Geofencing and remote payroll, general contractors and subcontractors can grow at their own pace and stay adaptable regardless of industry, economy, and policy changes.
Still unsure whether integrating Geofencing with payroll and workforce management is right for your business?