Case Study: Accurate Reporting Result in Reduction of Labor Cost

Background

A large general contractor faced significant challenges in managing and tracking employee attendance on multiple construction sites. The company relied on a paper-based system for attendance tracking, which was prone to errors and inefficiencies. Workers often signed in manually, leading to discrepancies such as duplicate entries, resulting in the company unknowingly paying for labor that was not actually performed. Over several months, this inefficiency translated into approximately $800,000 in unnecessary labor costs.

Challenge

The primary challenge was the inefficiency and inaccuracy of the manual attendance tracking system. The manual process allowed people who were not employed at the construction job site or "ghost employees" to be signed in, inflating labor costs. Furthermore, the labor-intensive process of manually compiling and verifying attendance data extended reporting times, affecting the efficiency of the payroll system and consuming significant time, often extending into weekends.

Solution

The contractor implemented Field Control Analytics’ (FCA) access control solution to digitize and optimize its reporting and attendance tracking processes. FCA introduced a badging system that required employees to be physically present to sign in, effectively reducing the occurrence of ghost employees. This shift to a digital system ensured a more accurate headcount, streamlining operations across multiple projects.

Implementation

The FCA solution was deployed across three major projects simultaneously. One key advantage was the ability to manage multiple projects on the same platform without switching between different software systems. This integration streamlined operations and provided a unified approach to workforce management.

Results

The implementation of FCA's reporting tools yielded significant improvements for the contractor:

• Reduction in Labor Costs: Eliminating ghost employees led to a cost savings of nearly $800,000 annually, directly impacting the company's bottom line.
• Increased Efficiency in Reporting: Transitioning from a paper-based to a digital system reduced reporting time from three to just one and a half days. This improved operational efficiency and allowed the administrative team to reclaim their weekends.
• Accurate Headcounts: FCA's precise reporting capabilities provided reliable compliance and financial management data, particularly in monthly OSIP (Owner Controlled Insurance Program) reporting.
  
  

Future Outlook

While primarily utilizing FCA's badging and headcount features, the contractor plans to explore additional functionalities, such as cost coding integration, to further enhance labor management and financial tracking. The company aims to fully digitize and streamline all reporting processes, making FCA an indispensable tool for its operations.