The construction industry's relationship with HR technology is complicated. While modern HR systems promise to solve the unique challenges of managing mobile workforces across multiple job sites, the reality is far more complex. Research from Arcoro reveals implementation hurdles are keeping many construction companies from realizing the full potential of their HR tech investments.
Arcoro surveyed 300 professionals at small to mid-sized construction companies and found HR technology adoption is fraught with interconnected challenges that can derail even the most well-intentioned implementations.
When asked about the biggest challenges to implementing new HR tech, integration difficulties topped the list at 32% – even beating out employee resistance to change, which came in at 29%. This suggests that the technical challenges of making systems work together are often more problematic than getting people to use them.
Close behind were implementation costs at 28% and lack of internal expertise at 24%. What's particularly telling is how these challenges compound each other. Companies struggling with integration often see costs spiral as timelines extend, while those lacking internal support frequently find themselves at the mercy of inadequate vendor relationships.
Construction companies use complex software ecosystems. Project management platforms track job progress. Accounting systems handle finances. Timekeeping solutions capture labor hours across scattered job sites. Payroll systems process wages. When these systems operate in silos, the result can be operational chaos.
Manually inputting data into separate systems consumes valuable staff time while reliance on error-prone spreadsheets, paper workflows and cumbersome reporting that increases compliance risks. Instead of streamlining processes, disconnected systems create more work.
Yet operations can also suffer from resistance to implementing new tech. Under ideal circumstances, HR software implementation takes months. But when employees, decision makers or even HR departments resist change, two months can quickly become six, nine or even a full year.
For construction companies operating on tight margins, extended timelines mean multiplied costs. Training time, productivity losses during transitions, data migration expenses and ongoing support requirements all add up. The longer the implementation drags on, the more expensive it becomes – and the more likely it is to fail entirely.
The survey revealed that 24% of companies lack sufficient internal expertise, while 14% receive inadequate vendor support. This is particularly challenging for construction companies that are often "doing more with less" and may lack specialized IT positions.
Unlike office-based businesses, construction companies must support workers and systems across multiple job sites, making consistent technical support both more difficult and more critical. When research shows that large-scale software transformations fail about 70% of the time, quality vendor support becomes the difference between success and becoming another disappointing statistic.
The solution isn't to avoid HR technology altogether; it's to approach implementation strategically. There are at least four critical elements for HR tech success:
Smart implementations focus on user experience from day one, featuring intuitive interfaces that require minimal training. They include straightforward configuration processes, regular check-ins with implementation teams, minimal disruption to daily operations and clear communication about workflow changes.
When employees find new systems easy to use, adoption rates increase and organizations realize benefits more quickly. This faster adoption helps justify implementation costs and prevents the extended timelines that can multiply expenses.
Construction companies that recognize the interconnected nature of HR technology challenges and develop comprehensive strategies to address them proactively significantly improve their odds of success. The key is choosing partners who understand construction industry requirements and commit to genuine partnership rather than just software sales.
Want to dive deeper into these findings? Arcoro's complete research report, 2025 State of HR Technology in Construction, provides detailed insights into current HR trends and actionable strategies for successful implementation.