Choosing the right HR software can feel overwhelming. With over 600 HR tech vendors in the US alone, construction companies face seemingly endless options to help solve their most pressing workforce challenges. What’s more, contractors need a solution that aligns with the specific struggles that come with hiring, growing and managing workers in construction. 

Arcoro research has found contractors are having issues with: 

• Finding and hiring the right candidates (65%) 
• Performance reviews (22%) 
• Time and attendance tracking (22%) 
• Onboarding new employees (21%) 
• Tracking employee certifications and compliance (21%) 

Understanding these are problems that need to be solved, as well as getting rid of manual processes which slows everything down, contractors are turning to HR software to automate their processes. Investing in HR technology can be a game changer. HR tech can help solve many of the workforce challenges the industry is facing all providing good data for strategic decision-making like headcount, turnover or job costs tied to people. 

But as there are so many solutions available in the marketplace, it takes some work to decide which will be the best fit for your organization.  

• Do you invest in a point solution or platform? 
• How do you get your team, workers and organization leaders on board? 
• How can you make sure implementation goes smoothly? 
• What questions should you ask your next tech partner? 

The article answers those questions, giving you the tools to choose your next piece of HR software with confidence. 

Point Solutions vs. Platforms: What's the Difference? 

One of the most critical decisions you'll make is choosing between point solutions and comprehensive platforms. 

• Point solutions address a single issue, like recruiting. They can be implemented quickly but create several challenges. They're difficult to scale and integrate, leaving employees working in silos and making it hard to maintain data consistency across your organization. 
• Platforms offer integrations that streamline all HR processes, maintaining consistency and improving data accuracy. While they take more time to implement and master, they typically deliver better long-term ROI. 

The Hidden Costs of Point Solutions 

Individually, point solutions may look cheaper, especially when targeting specific functionality. However, when you stack multiple licenses, costs can add up quickly and renewal costs often become unpredictable. Platform solutions usually feature a single license with tiered pricing structures and can often replace three-to-six-point solutions. 

Point solutions also come with hidden costs like APIs, middleware or custom development to get solutions talking to each other. This adds increased cost and risk of data silos, along with ongoing and inconsistent maintenance to support the entire ecosystem. Additionally, users often must enter duplicate data in multiple systems, which increases the risk of data discrepancies, administrative overhead and compliance challenges. 

Building Your Business Case 

Making a compelling business case for HR software requires understanding both the cost of your current manual processes and the value of automation. 

The cost of manual processes really hits home when it comes to recruiting employees and maintaining compliance. For example,  

• It costs approximately $4,000 to hire a new employee 
• Fines for unpaid back wages can range from $100,000 to $200,000 before civil lawsuits even begin 
• Manual processes create compliance vulnerabilities and administrative bottlenecks 

But automation can reduce those costs, essentially paying for itself with the benefits it provides. 

• Organizations with a strong onboarding process improve new hire retention by 82% and productivity by over 70% 
• Businesses that spend at least $1,500 per employee annually on training earn 24% more profit than those with lower training budgets 
• HR automation reduces the need for manual labor, lowering staffing costs 
• Automation reduces waste while increasing productivity through better resource allocation 

When presenting to a skeptical CFO, focus on turnover and compliance numbers. If you can improve your onboarding process and retain even a handful of employees per year, the system can pay for itself through reduced hiring costs alone. Compliance protection is equally compelling because fines can easily reach six figures. 

Beyond obvious expenses like paper and printing, many organizations underestimate the true cost of manual HR processes, including employee time spent on repetitive tasks, compliance risks and errors that lead to rework or fines. 

Planning for Success 

Failing to plan is planning to fail. When there's a clear plan, companies begin experiencing the full benefit from their investment much sooner.  

Arcoro research shows that 32% of companies struggle with integration difficulties, 29% face resistance to change from employees, 28% cite high implementation costs, 24% lack internal expertise to support adoption and 14% receive insufficient training and support from vendors. This is why taking steps to plan is so important. 

1. Define your specific needs and the reasons why you need new software. What challenges are you trying to solve? Do you need to hire more workers, reduce turnover, automate your benefits process or all the above. Understanding your biggest priorities can help guide you in the right direction. 
2. Assemble the right evaluation team. The best evaluation teams combine decision-makers and day-to-day users. You need leadership and HR at the table, but also someone from payroll and a frontline manager who will use the system. Without this mix, you risk choosing software that looks great in a demo but doesn't solve the real problems you face daily. The right mix of people helps with early buy-in and ensures the system truly works for the people using it every day. 
3. Catalog your current systems. Cataloging your current systems gives you a clear baseline of costs, redundancies, and risks before making any investment decisions. Organizations who catalog their current systems gain full visibility into Total Cost of Ownership, understanding what they're really spending on technology and how those costs are spread across the organization. This helps identify redundancies, eliminate waste, understand integration and hidden costs, and develop more accurate budgets and forecasts 
4. Manage change effectively. The number one pushback to new systems is fear of change. People worry the change will make things harder instead of easier. The key is showing them how it removes pain points like chasing employees for signatures or manually tracking certifications. Involving employees early in the process and communicating clearly helps them feel like part of the solution, shifting resistance into ownership. 

Companies who recognize the importance of these steps and invest appropriately generally see much greater success when adopting new systems and delivering a seamless experience. 

Choosing the Right Partner 

The right partner can make or break a new software purchase. Without adequate direction and support, implementing a new system could fall flat. Selecting a vendor requires evaluating both technology capabilities and the partnership itself. 

Ask your vendor: 

• What is the total cost of ownership? 
• How does the solution scale as you grow? 
• What are the integration capabilities? 
• Does it include construction-specific features? 

Essential Support Questions 

Ask vendors how they support your team after go-live, because that's when many vendors disappear. Find out what types of training are included and whether it's built for different learners through self-paced, live or onsite options. Determine whether you'll talk to a real person who understands your business when you have a problem or get stuck with a chatbot. While chatbots are helpful for quick answers, sometimes you just need to speak with a real person. 

The answers to these questions will quickly reveal if the vendor is a long-term business partner or just a software seller. 

Building Sustainable Vendor Relationships 

Sustainable vendor relationships are built on more than just price. They're about creating long-term value, trust and mutual growth. Vendors should understand your business strategy and roadmap and demonstrate how they'll add value over time. Look for transparency, reliability and strong communication. Every vendor relationship should be a partnership rather than simply an exchange of information and money. 

Working with a partner who understands the complexity of running a business day to day while also evaluating large investment decisions is paramount. Vendors who respect this complexity can become a valuable asset in helping break things down into smaller, actionable pieces and focusing buyers on the most important factors. This builds trust and accountability across the relationship, making the process less overwhelming. 

Your Next Steps 

Getting started doesn't have to be overwhelming. Focus on these key actions: 

✓ Assess your current HR pain points 
✓ Calculate the true cost of manual processes 
✓ Involve the right stakeholders in evaluation 
✓ Prioritize vendors who understand construction 
✓ Plan for change management from day one 

Evaluating and purchasing new systems requires attention and focus from stakeholders across the organization. By following this playbook, you'll be equipped to make an informed decision that delivers real value for your construction business. The right HR software isn't just about features, it's about finding a partner who understands your industry challenges and commits to your long-term success. 

Watch Arcoro’s webinar, The Smart Buyer's Playbook, which covers all of the information in this article. Register here to access.