Construction contractors learned, out of necessity, how to approach labor strategy back in 2011 through 2015 as the Great Recession-crippled economy slowly rebounded. Because of industry uncertainty at the time, they found it safer and prudent to run a much leaner full-time workforce than prior to the 2009 recession, comprised only of their top craft professionals. As projects opened and workload increased, they kept a reduced payroll and supplemented the leaner, core craft workforce with contract skilled craftsmen on an “only as needed” basis.
A substantial economic difference between the recession and the current COVID-19 impacted economy, is today’s American industry will likely rebound within months vs. over multiple years.
This has prompted construction contractors to immediately go back to what Tradesmen International has coined, a “CORE + Flex” labor staffing strategy. Contractors of all sizes are working with Tradesmen’s construction labor management trained consultants to ascertain what volume of full-time craft employees makes sense for their business. And, how to identify which specific craft employees who have been laid off they should bring back, and when.
“The CORE + Flex staffing strategy is exactly right for today,” said Ed Rojeck, Tradesmen International Director of Marketing. “With governmental and healthcare expert opinions varying day by day, on which state, which businesses should open and when, our clients are doing the smart thing… playing it safe.
“They are running their businesses with only their most productive, safest and best skilled craft professionals,” continued Rojeck. “When workload begins ramps up beyond what this leaner core workforce can handle, they’re not adding permanent payroll. Like after the 2009 recession, they’re supplementing their core workers with contract skilled craftsmen. By staying in close contact with our local offices, they’re able to give our local recruiters an ample 4-to-6 day lead time on trades needed. The result is Tradesmen confidently – with a 90% or better fill-rate – provides the number of contract workers requested and at the right skill level, precisely as needed. By sending our employees back when workload slows, our clients are sustaining a profitable, productive workforce.”
Using contract skilled labor has other advantages that positively impact contractor bottom lines. Tradesmen covers all payroll, unemployment, benefits and Workers’ comp related costs and risk on their employees which shelters contractors from these expenditures they’d normally have to pay on short-term, full-time workers.
Tradesmen International is offering contractors across America a consultation that includes a Non-Charge, custom Labor Productivity Analysis that enables contractors to implement a logical Core + Flex staffing strategy… and increase profit margins.
ABOUT TRADESMEN INTERNATIONAL
Tradesmen International, an Ohio-based company with nearly 200 locations nationally, has provided contract skilled labor to construction and industrial partners since 1992. Partners benefit from Tradesmen’s recruiting expertise and magnitude, having at their disposal pre-screened craftsmen in all trades, at all skill levels. The severe shortage of verifiably skilled craftsmen across North America has otherwise made this a daunting task for construction business management. In addition, Tradesmen’s business model centers on enabling partners to sustain a balance between workload and workers which traditionally helps businesses achieve exceptional profit margin gains.
From a construction worker perspective, the company’s continuous relationships with multiple contractors in an area enables Tradesmen to provide craft employees improved job stability. This is possible as, prior to the current project ending, the employee is already being marketed for their next assignment via a local team of sales professionals.