The construction industry is facing a serious challenge. Its workforce is aging faster than any other industry in the country, according to the U.S. Bureau of Labor Statistics (BLS), and construction companies nationwide are looking to fill multiple positions. Companies are desperate for new talent because employees who have been with them the longest are transitioning out, and there is not an adequate pipeline of new candidates to take their place.
Ensure Your 401(k) Plan Complies With Legal Requirements Construction Business Owners Must Be Diligent Amid Increased Plan Scrutiny
One of retirement plan sponsor’s most important duties is to ensure the plan is in compliance with legal requirements. This is no easy task, especially for construction firms with high employee turnover. The Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC) have specific requirements that plan sponsors must follow, and the current regulatory environment has led to increased scrutiny of plan practices.
“If we build it, they will come” doesn’t just apply to fictional baseball fields. It also applies to building better benefits plans in an effort to keep and retain better construction workers. Looking back on 2016, it’s no question that the construction industry is making big changes to employee benefits. Like most industries, construction is facing rising health care costs—all while balancing the demands of attracting and retaining skilled workers.
Five Guidelines for an Effective Wellness Plan Tips for Construction Companies to Keep Employees Healthy and Productive
While construction owners and suppliers face many strategic decisions to lead a growing business, one to keep top of mind is the health and wellness of their people. The construction industry demands a skilled workforce with high mental and physical engagement. Making an investment in a wellness plan for employees can contribute to good health on and off the job, increase productivity and reduce common jobsite errors that may lead to injury.
Construction firms that sponsor 401(k) retirement plans should review their stable value investment options given the recent changes in non-government money market fund pricing and potential liquidity gates.
In recent years, construction workers have incurred the most injuries of any industry in the private sector, according to the Centers for Disease Control and Prevention. Yet, these workers count on being healthy to work and support themselves and their families. In the event that a worker experiences an accident on the job, he or she may not be able to afford the financial setbacks associated with medical bills.
There is no shortage of differing opinions regarding the Affordable Care Act (ACA). However, one thing most people agree on is the ACA unleashed a sea of confusion for employers, individuals and industry professionals.
Many closely held construction companies do not have succession plans for continuing the business when the major (or sole) shareholder wants to retire. If family members are unable or unwilling to take over—or if the existing management does not have the financial means to buy the business—an employee stock ownership plan (ESOP) can provide an internal market to buy the closely held stock.
After several years of increasing demand, construction firms are expanding their payrolls in almost every market segment. They are optimistic about growth in the retail, warehouse and lodging segments, as well as demand for manufacturing, energy and hospital construction. They also are ready to purchase and lease new equipment. Although the outlook is optimistic, construction firms face a number of significant challenges. Foremost among those challenges is the growing shortage of qualified workers to fill available positions.
Technology is continuing to change the way we see and interact with the world around us. Being able to multitask on phones, computers and tablets has also changed expectations both on and off the job, especially as it relates to health.
In business, as in life, there are “nice to haves” and “need to haves.” Nowhere is that more true than in the realm of employee health care insurance. Workers need quality coverage to help protect themselves and their families from the high cost of medical bills. Without that safety net, they’re not as fully engaged and productive as their employers need them to be.
As many plan fiduciaries can attest, retirement plan fees can be extremely complex and difficult to understand. This is due in large part to the lack of transparency surrounding plan fees and services as well as the complicated and varying methods in which service providers are compensated.