Too many times HR is considered a cost center. That’s because it is expensive to manage a construction company’s workforce, especially if many of your processes are still done manually. Switching to automated processes using HR software can turn your HR department into a profit center— especially when the HR software ROI is easily proven. 


HR software helps companies add value in terms of employee engagement, productivity and engagement by: 

Moving to more automation with HR software has significant benefits, but it still comes at a price. Without a doubt, HR tech tools are an investment. And if a CFO or other company decision-maker is going to sign off a new purchase, especially during a time of shrinking budgets and economic uncertainty, that solution better pay for itself, and fast.   

HR Software ROI Investments Can Be Proven 

Applicant Tracking System 

An applicant tracking system (ATS) is the first tool HR teams should consider upgrading. An ATS can automate nearly the entire hiring process, saving both time and money by reducing recruiting costs and increasing the chances of hiring the right person. 

With built-in job description tools, an ATS can post to numerous job boards automatically, speeding up the time it takes to reach candidates. Because an average job posting costs ranging from $249 to $495 for a 30-day posting, speed to hire is imperative. An ATS with features to perform background and drug screenings further accelerates the process. But what’s more, a good ATS will help you weed out candidates that aren’t qualified for the job.  

Spending money on hiring a great candidate is one thing, wasting that money on a bad hire is another. A bad hire can bring safety issues, workplace culture problems and even negatively impact recruitment and retention. HR software ROI is proven with a strong ATS that will help you pre-screen and rank candidates using criteria tailored to your company’s needs. Better candidates will filter to the top, leading to quicker hiring, more fluid onboarding, a better work atmosphere and ultimately a more productive workplace. 

Onboarding Software 

The cost to hire an employee is already high, but if that new employee quits within the first couple of weeks or even days, that money is not only lost but more must be used for a replacement. One of the best statistics out there that prove effective onboarding is worth it comes from a Brandon Hall Group study for Glassdoor: 

  • Organizations with a strong onboarding process improve new hire retention by 82% and productivity by over 70%. 

HR software ROI is proven with onboarding as it helps reduce turnover. What’s more, while retention is one goal, reducing organizational risk is often another. When all required paperwork for new employees is automated, errors are reduced. Plus, a good HR software system will update forms automatically within the system, reducing the time it takes HR to pull paperwork and ensure accuracy. 

Performance Management System  

A Gallup report shows only 19% of Millennials strongly agree they receive routine feedback at work. And only 17% report receiving meaningful feedback, the kind that matters because it helps individuals learn, grow and do their jobs better. Offering valuable feedback to employees keeps them engaged and focused on long-term goals with your company.  

HR software ROI is proven with a performance management system that aids HR departments to create and manage all types of on-demand reviews like project based, skills assessment, discipline action form and employee recognition form is highly valuable and packs a high ROI. Managers can also track all of this information from one dashboard. You can review employee performance on a project-to-project basis and provide managers with feedback from a project lead’s perspective by an individual, group or both.  

Performance management empowers team members to direct their own career development toward mutually agreed upon goals and competencies, which directly translates to engagement. And the more engaged your employees are, the more productive they’ll be. And, as engagement is directly tied to turnover, keeping it high is essential to maintain your workforce. 

  • Organizations with a turnover rate of 20% prior to the pandemic could expect that number to jump to 24% in 2022 and in years to come.  ( 
  • A company with a workforce of 500 would need to hire 120 new workers each year. 

But performance management also benefits your company. When employee efficiency is maximized, companies have an edge when it comes to achieving organizational business objectives. Basically, managers are able to better understand the strengths and weaknesses of the overall team and keep them focused on achieving their goals. By benchmarking, tracking and evaluating employee performance over time, HR teams gain all the insight needed to make informed personnel decisions.    

Learning Management System (LMS) 

One benefit of ongoing training is that it keeps workers safe, helping to mitigate high injury costs. According to OSHA, American companies pay nearly $1 billion per week for direct workers’ compensation claims to cover medical and disability expenses.   

Incorporating a learning and development program via an LMS also helps to futureproof your business. Upskilling employees not only helps them feel more engaged but will fill any skill gaps left behind by workers who leave the job. In fact, offering development opportunities may help retain your workers. 

  • According to an upskilling study, 74% of Millennial and Gen Z employees are likely to quit in 2023 due to a lack of skills development opportunities. 

Staying up to date on safety trainings like OSHA and other professional development requirements ensures safer worksites. It also helps your employees become more skilled over time. Plus, indirect costs, personnel turnover or broken and misused equipment can add up to a lot of money, and under-qualified workers amplify the risk, proving this piece of HR software ROI. 

Get More from Your HR Software 

An ATS, onboarding, performance and learning management systems are just four pieces of HR software that quickly prove their ROI. Arcoro’s software solutions also include benefits management, Core HR and essential integrations that make Arcoro’s HR technology work seamlessly with other top construction software providers.  

Understanding the cost benefits of HR software helps make the decision to invest much easier. HR software not only addresses workforce management challenges but automating processes saves money both directly and indirectly via reduced workload and increased productivity which translates to cost savings every time.  

Download the CFO’s Guide to Buying HR Software to learn more about how HR tech can save money while generating real value for your company.