HCM sales reps across the country are in a race to close lucrative, weekly payroll construction deals. As the nation reopens for business, your competitors are descending upon construction companies and clamoring for their attention — and their signatures.
Many payroll sales reps will follow the same game plan as everyone else: make bold statements, cut costs, offer incentives. But what if you could win more deals with a complete solution they’ve been craving for years?
With IDI as your partner, HCM sales reps are closing deals with fewer price breaks and positioning a solution tailored for the complexities of construction. But first, let’s take a look at why construction companies are a rich opportunity right now.
5 Trends in the Construction Industry That Set You Up for More Sales
There are five trends at work right now that make construction companies a great opportunity for winning new payroll customers.
- Construction is one of the first non-essential industries reopening across the nation. As these companies are returning to work, they’re dealing with complex and painful payroll challenges. They’re also starting to bring in revenue again, which will soon put them in position to be purchasers.
- Contractors are still facing increased scrutiny from the government on wage violations. They’re often in the crosshairs of the DOL, and having a solution that protects against wage errors is very attractive.
- ERP systems are beginning to eliminate payroll modules, or they’re not making investments in their payroll services. It has been challenging for ERP companies to deal with the payroll and HR compliance complexities that construction companies have to manage. Very soon, we’ll see more and more construction companies that need to find a new payroll strategy.
- Many construction companies are growing through acquisition and exploring government projects. They will begin to operate in multiple states or a greater variety of projects, which will bring new pay-related regulations and reporting to comply with.
- Contractors are beginning to embrace cloud technologies. Construction has historically lagged behind other industries in adopting new technologies, but companies are now beginning to catch up. The coronavirus crisis has taught many reluctant businesses that you have to be virtual to survive. This presents new options for HCM companies to offer solutions that contractors may have been unwilling to think about in the past.
Start landing bigger deals: Use these deep-dive questionnaires for construction prospects.
These trends make the construction industry a tremendously attractive target for HCM companies. As your competition discovers the opportunities in that vertical, the space could become too crowded to stand out on your own.
Unless you have a partner who can help you rise up above the crowd. Start by asking the right questions.
2 Must-ask Questions to Differentiate Yourself
When you’re in the field, it’s essential to identify some of the challenges your prospect is facing, and to spot the triggers that can set you apart from the competition. Asking these two questions can do that:
- Do you work on government-funded projects or will you be when construction reopens?
- Do you work with unions?
If your prospect answers yes to either of these questions, that’s a key indicator that an HCM system alone won’t be able to handle their payroll complexities. And it’s good news for you, because this is what will set you apart from every other payroll sales rep.
When you partner with IDI, you have a solution that other payroll providers can’t match. Our Contractor Central solution holistically addresses the key components that have prevented construction companies from successfully outsourcing their payroll needs.
- Maintaining different project and contract rates — Setting up projects once along with the associated wages and benefits their government or union contracts require
- Correctly determining wages & benefits — Including prevailing wage and fringe rates, union wages, and FLSA overtime rates.
- HCM-ERP integration — Getting the all-important Job Cost back to the ERP system at the right level of detail. This has always been a challenge in the past because construction companies need more than General Ledger information — they need the detailed job costs as well.
- Certified payroll reporting — Validating back to the funding agencies that people were paid correctly and that the employer is in compliance with the contract.
Contractor Central Sets You Apart
Each of those issues is key to getting employees paid correctly, and they’re all outside of an HCM system’s capabilities — not because your HCM is faulty or lacking, but because of the sheer demands it would place on a payroll system to address all the complexities of construction. You simply can’t build all of the potential wage structures and nuances into an HCM platform without making the system unusable across your 1000’s of clients.
But Contractor Central was built to handle the complexities of processing construction paychecks, and getting them right every time. By bringing in Contractor Central, you can provide a solution your competitors don’t offer:
- Prevailing and union wages based on multiple variables
- Fringe rates associated with the prevailing wage rate
- ERP integration to job cost level
- Certified payroll reporting
Close More Construction Deals
Others are making bold promises, reducing their rates, and throwing in attractive incentives to win construction contracts. But with IDI, you can offer the solutions that construction companies actually need.
While contractors don’t mind reduced rates and incentives, what they’re looking for is a holistic system that eliminates the manual labor surrounding their payroll complexities. These companies are often willing to pay more If they can find the right solution.
When you partner with IDI, you offer the solution your prospects have been looking for. Purchasing your HCM platform becomes an easier decision.