Smarter compensation for the construction industry with Keep Financial

The industry continues to grapple with a shortage of skilled workers. According to a survey conducted by the Associated General Contractors of America (AGC) in 2021, 80% of construction firms reported difficulties in filling both hourly craft and salaried professional positions.

“The construction industry must recruit hundreds of thousands of qualified, skilled construction professionals each year to build the places where we live, work, play, worship, learn and heal,” said Michael Bellaman, ABC president and CEO.

In 2024, the industry will need to bring in more than 342,000 new workers on top of normal hiring to meet industry demand, and that’s presuming that construction spending growth slows significantly next year.

Worker Shortage

The perception of construction as physically demanding, lacking tech advancements, and offering limited career growth can deter young talent.

82% of construction companies reported a shortage of available workers aged 18-34.

National Association of Home Builders (NAHB)

High Turnover

The construction sector turnover rates impact project continuity and overall productivity.

The Bureau of Labor Statistics (BLS) reported a 5.6% turnover rate for the construction industry in 2020, which was higher than the national average across all industries.

Keep-Financial-Healthcare-Lost-Productivity

Recruitment

The construction industry will need to attract an estimated 546,000 additional workers on top of the normal pace of hiring in 2023 to meet the demand for labor, according to a proprietary model developed by Associated Builders and Contractors (ABC).

Collections

Clawbacks are expensive to enforce and many end up unenforceable.

Tax Complexities

Paying taxes up front leads to countless hours wasted on preventable W2 corrections.

Manual Tracking

Many track sign-on and retention bonuses manually, making automation and scalable edits difficult.

Automate compensation

A fully automated system to deliver upfront compensation tied to time-based and performance-based vesting

Track milestones

Enable employees and employers to track & celebrate milestones

Improve finances

Improve providers’ credit and help remove their financial roadblocks

Flexible and modifiable

Include flexible components like performance challenges, easily modify arrangements

Optimize cash flow

Optimize cash flow & AR management, defer taxes & automate collections

Reduce manual effort

Save time and money by automating manual tasks like bonus tracking, clawbacks, W2 corrections, and more.

Turn-key product and no IT support required

Bonus dashboard with employer and employee views

Employee self-service portal to view milestones and withdraw bonus

Governance and compliance built-in

Finance-friendly, with robust auditing and reconciliation features

Construction

Upgrade your recruiting and retention tactics with smarter, proactive compensation.

The challenge

The shortage of skilled laborers is not slowing

Worker Shortage

High Turnover

Recruitment

Traditional retention-based compensation creates administrative headaches and unnecessary expense

Collections

Tax Complexities

Manual Tracking

80% of construction firms reported difficulties in filling both hourly craft and salaried professional positions.

The solution

Custom, scalable sign-on and retention bonuses

Automate compensation

Track milestones

Improve finances

Flexible and modifiable

Optimize cash flow

Reduce manual effort

Keep Financial features

“Keep has been an important tool in our employee retention program at Bestow, and we’re eager to utilize Keep Performing to better align performance objectives with significant compensation events.”

Claire Martin | CFO at Bestow Inc.

See Keep in action.