Behavior based training

The key to improving profitability in the construction industry is to optimize overhead costs and operating expenses associated with completing each project.

Overhead costs don't directly contribute to the output, but add up to the total expenditure of completing a project. These costs are mainly divided into two categories: direct costs and indirect costs.

Direct costs are known as job overhead costs and include all expenses directly charged to a specific project. On the other hand, indirect costs are referred to as general overhead costs and are not chargeable to one particular project. They constitute the company’s cost of doing business and any fixed expenses that the company needs to pay.

Determining the overhead costs is integral to differentiating between a profitable and loss-making project and, therefore, must be taken into consideration when calculating the overall profit.

Overhead Expenses in the Construction Industry

Low overhead costs translate into competitive pricing of the projects, making the business a more lucrative than its competition. Further, optimizing overhead costs increases profit margins, boosting the overall bottom line. Some significant factors contributing to construction overhead costs include:

  • Labor

Having a proficient team is integral to the successful completion of a project. The remuneration of each worker is a primary contributor to the construction overhead costs.

  • Equipment and Machinery

You'll need the appropriate tools and machinery to complete any construction project. The cost of purchasing the equipment significantly contributes to the overhead expenses.

  • Compensations

As an employer, you are liable to pay compensation to any worker suffering injuries or succumbing to death when working onsite. The expenditure incurred for providing the compensation amount contributes to your overall overhead expenses.

Need for Behavioral Based Training in the Construction Industry

Accidents are common on construction sites. A total of 1,061 construction workers died on the job in 2019, according to the U.S Bureau of Labor Statistics.

Another study revealed that over 60 percent of construction accidents occur within an employee’s first year of work, highlighting the need for proactive safety training.

Some common mistakes that cause most accidents are:

  • The lack of concentration on the job site
  • Loss of balance, traction, or grip due to the lack of focus
  • Insufficient precautions when using heavy equipment
  • Job-related frustration
  • Complacency

A behavioral-based training program from a reputable institute can be instrumental in promoting safety, eliminating hazards, and preventing injuries. The training helps workers learn about preventing accidents or injuries on a construction site by correcting unsafe behaviors.

The idea behind behavioral-based training for construction companies is to develop an understanding among the workers that the responsibility for safety falls on everyone, rather than a single person. Technically, the training makes them aware of the need for abiding by all the safety guidelines, especially when using heavy equipment or lifting loads during construction.

How to Reduce Overhead Costs by Implementing Behavioral Training?

Construction laborers are most vulnerable to job-related injuries. According to the U.S. Bureau of Labor Statistics, over 200 incidents per 10,000 FTE (full-time equivalent) were reported between 2018 and 2019.

Needless to mention, this leads to loss of productivity and contributes to your company’s overhead. Here’s how implementing behavioral-based training can help:

  • Higher Worker Productivity

Behavioral-based safety training encourages workers to adhere to safety protocol (as they know that their employer cares about their safety) and improves the overall productivity by instilling a sense of confidence. This motivates them to do their best at work. Higher productivity, in turn, will contribute to your bottom line by helping you recover the costs associated with employee absenteeism.

  • Safe Usage and Maintenance of Heavy Equipment

Improper use of heavy equipment significantly adds to your overhead expenditures. Not only does it lead to accidents, it also reduces efficiency in the long term.

Behavioral-based training teaches workers about the necessary measures to adopt when using tools, machinery, and equipment to ensure overall safety on the job site. They also learn about regular cleaning and inspection of the equipment to make sure that it is capable of operating with their highest efficacy.

  • Reduced Expenses on Workers’ Injury

Behavior-based safety training makes workers aware of performing their duties in accordance with industry best practices. This leads to fewer workplace accidents and injuries, reducing your expenses on workers’ compensation. You can utilize the money saved for paying wages.

  • Parting Words

The root causes of incidents are not always obvious, but they are often a result of the workers’ unsafe behaviors. It is a smart move to train workers about the importance of abiding by safety principles, rather than pay for their injuries, damages, and delays. Behavioral-based training can significantly improve safety, performance, and employee morale, and bring down the overheads of your construction company. Hopefully, the above pointers will help you understand this aspect better.

Author Bio: Troy Clark is the owner of the MSC Safety Solutions, a developer safety training program designed to achieve and maintain a well-informed workforce, from top management to field personnel. He has worked for over 20 years in the safety industry, specializing in construction and general industry policy development, behavioral-based safety, fall protection, and safety management principles.