The construction industry faces unique hurdles when it comes to its human resources (HR) processes. HR teams must manage a mobile workforce that works across multiple job sites, sometimes across state lines. And while HR technology can help contractors overcome these hurdles, recent Arcoro research shows challenges exist when it comes to adoption and implementation.
Arcoro surveyed 300 people working in both small to mid-sized US-based construction companies across various construction sectors and asked them about their biggest challenges implementing HR tech. The top responses include:
- Difficulty integrating with other systems – 32%
- Resistance to change from employees – 29%
- Cost of implementation – 28%
- Lack of internal expertise or support – 24%
- Insufficient training/support from vendors – 14%
The survey data shows that implementation challenges are interconnected. Companies struggling with integration difficulties often experience increased costs and employee resistance. Those lacking internal support frequently face vendor relationship challenges. Understanding this interconnected nature is crucial for developing effective implementation strategies.
Integration Difficulties
Integration challenges represent the most frequently cited obstacle, affecting nearly one-third of survey respondents.
Construction firms rely on a complex system of software tools. Project management platforms track job progress. Accounting systems manage finances. Timekeeping solutions capture labor hours across job sites. Payroll systems process wages. When these systems operate in isolation, the result is operational chaos. Instead of streamlining processes, disconnected systems require manual data entry and transfers between platforms.
The real costs of poor integration include:
- Manual and duplicate data entry that consumes valuable staff time
- Reliance on multiple third-party systems, spreadsheets and paper workflows that cause errors
- Lack of a clear system of record for employee data, leaving teams without reliable information
- Cumbersome reporting capabilities with limited access to data that increases compliance risks
The Solution
Implementing truly integrated HR and ERP solutions can transform operational efficiency. A genuine integration between HR and ERP systems dramatically reduces manual processes and duplicate work. Instead of entering employee information multiple times across different platforms, data flows automatically between systems.
One of the most valuable aspects of proper integration is that it empowers HR teams to take ownership of critical processes without requiring constant IT support. HR professionals can manage employee data, run payroll and handle benefits administration from a unified platform, giving them greater autonomy and control. This empowerment extends to strategic initiatives as well. When HR teams spend less time on manual data entry and troubleshooting disconnected systems, they can focus more on talent management, employee engagement and other high-value activities.
Employee Resistance and Implementation Costs
Employee resistance to change emerges as the second most significant challenge at 29%, while implementation costs follow closely at 28%. These challenges are often interconnected, as resistance can extend implementation timelines and increase associated costs.
It can take months, under the best of circumstances, to implement a new HR software system. If employees, decision makers or even those in the HR department are resistant to the change, two months can quickly multiply into six, nine or even a year.
The cost challenge includes more than just software licensing fees. Implementation costs include training time, potential productivity losses during transition periods, data migration expenses and ongoing support requirements. For construction companies operating on tight margins, these additional costs can significantly impact budgets.
Implementing integrated systems doesn’t have to be disruptive.
The Solution
Smart HR and ERP integrations are designed with user experience in mind, featuring intuitive interfaces that require minimal training for staff adoption. The most effective implementations include straightforward configuration processes, regular check-ins with the implementation team, minimal disruption to daily operations and clear communication about changes to workflows.
When employees find new systems easy to use, adoption rates increase and the organization realizes the benefits of integration more quickly. This faster adoption helps justify implementation costs and reduces the extended timeline that can multiply expenses.
Support Challenges and Solutions
The survey reveals that 24% of companies lack sufficient internal expertise or support, while 14% receive inadequate vendor support. These challenges often compound other implementation difficulties and can determine long-term success.
Many construction companies are doing more with less and often lack the specialized positions that understand and support the company’s tech stack. This creates challenges during HR technology implementations because these projects require both technical knowledge and construction industry understanding.
Unlike office-based businesses, construction companies must support workers and systems across multiple job sites, making consistent technical support difficult and increases implementation complexity.
The Solution
A significant factor in implementation success is vendor support quality. It takes several steps to finalize a new software purchase, including getting both leadership and employees on board, and all that hard work can quickly go south if the vendor doesn’t provide the support needed to get the tool implemented and working for your team.
When organizations undertake large-scale transformations like implementing new software, research shows that their efforts fail about 70% of the time. Adequate vendor support can be the difference between success and becoming part of this disappointing statistic.
The Arcoro Advantage
Arcoro is a true partner for its customers. Our team is driven to help our customers not only purchase the right software but see it through implementation and offer future support. Arcoro offers several support options, like Arcoro Learning so users can quickly find the answers to their questions without having to make a call.
By providing ongoing education opportunities, companies can build internal capabilities while receiving vendor support throughout the implementation process and beyond.
The key to overcoming support challenges lies in choosing vendors like Arcoro who understand construction industry requirements and commit to partnership rather than just software sales.
Understanding these implementation challenges and developing strategies to address them proactively significantly improves the odds of successful HR technology adoption. Companies that recognize the interconnected nature of integration, resistance, cost and support challenges can develop comprehensive approaches that lead to successful outcomes and meaningful returns on their technology investments.
Read Arcoro’s entire research report, 2025 State of HR Technology in Construction, to learn more about current HR trends.
Take This Resource With You
Download the eBook, "The True Cost of HR Tech: Top Challenges in Adoption and Implementation."
