6 Tips for Monitoring Employee Performance on a Construction Megaproject

When we look back at 2024, the construction industry will likely remember megaprojects (projects costing over one billion dollars or that employ at least 500 workers) being the driving force behind a resurging construction landscape. After a few years of unpredictable markets, new legislation and funding are fueling construction and manufacturing projects across the country. This includes megaprojects like the development of data centers, semiconductor plants and infrastructure.

Over the last 20 years, I’ve seen significant change in the industry, but one constant is the need to monitor employee performance no matter the size of the project. Recently, as the cost of materials and labor has increased, many of the companies I partner with have started to put an emphasis on employee performance monitoring, skills development and the quality of their work. Afterall, worker performance has tremendous impact on the success of a project. From my experience, a well-planned employee performance monitoring program can increase retention by 20 to 40 percent and I’ve seen even greater results when Aerotek is brought in to support the project. Through improving retention and ensuring quality work, performance monitoring helps employers avoid budget and time overruns. 

The Unique Challenges of Employee Performance Monitoring in Construction

As a partner to many construction companies across the US, I’ve recognized several unique challenges in performance monitoring. Megaprojects employ thousands of workers and dealing with rapidly fluctuating headcounts presents serious threats to staying on budget and on time. These changes can stress and overextend existing support structures if resources are not scalable. This can lead to poor construction workforce management and ultimately attrition.

Communication is another consistent challenge in construction. Especially when it comes to explaining goals, roles and desired outcomes. Establishing and maintaining expectations during a construction megaproject requires constant communication and is often neglected in a complex work environment.  

Which KPIs Matter Most

Employee performance monitoring doesn’t require the latest technology. A simple approach is often the best and that can be true for even the most complex of construction megaprojects. Having direct conversations with everyone in your workforce and then logging the responses and progress can give you sufficient actionable data.

For performance monitoring on construction sites, there are certain KPIs (key performance indicators) that can provide better data when researched correctly. On megaprojects where supervision isn’t easily provided, a worker’s ability to complete a task without someone overseeing every step of their work is very important. Likewise, their ability to take direction is also worth tracking. Are your workers completing their tasks on time and in a safe manner? Are they becoming more productive as they gain experience? Answering these questions can help you spot a future foreman or highlight a worker that needs some motivation.

Another big problem we’re currently hearing from our construction clients relates to absenteeism and punctuality. This became a significant issue during the COVID-19 pandemic and there has been little improvement in recent years. Tracking how well a worker honors the work schedule can help you spot someone who may not be a good fit for the project.

Lastly, monitoring how motivated a worker is to learn and grow within your project can help you spot future leaders. Construction companies are aggressively seeking workers who they feel confident in promoting to supervisory or managerial roles. By tracking who signs up for extra training or expresses interests in the project beyond their duties can help you identify who may be best suited for advancement. 

6 Ways To Improve Construction Worker Performance Monitoring

In the vast and complex world of construction megaprojects, where the stakes are high and the scope is grand, the monitoring of worker performance is a pivotal factor in steering these colossal endeavors towards success. Here are a few ways to ensure your employee performance monitoring program is on the right track.

Create A Feedback Loop

Worker engagement is a serious issue across industries. The less connected someone feels to their work or their employer the more likely they are to find a new job and less likely to maintain their performance. An unengaged construction worker presents even more risks considering the work can be difficult and potentially dangerous.

A critical tool employers can use to improve worker engagement is developing a program where they provide and receive feedback from their workforce. This not only creates a culture where communication is encouraged, but it also ensures the quality of work meets standards and is completed safely.

There is also research that suggests younger workers (millennials and Gen Z) prefer receiving feedback about their work more than previous generations. They also prefer to get this feedback more often. Additionally, in our Job Seeker Survey: Searching for Stability and Better Pay — nearly 30% of respondents said they had not received feedback about their performance in their most recent job. This represents a huge opportunity for employers to improve engagement.

A megaproject will employ workers of various ages and preferences, but as younger workers become more prevalent on the jobsite, now is time to invest in creating a program that improves the employer/employee relationship through consistent communication.

Set Expectations

Whenever discussing performance with workers, transparency, truthfulness and clear expectations are critical to success. Communicating the purpose and goals of your performance tracking program on the front end when workers are hired helps demystify the process. Often, workers will correlate tracking their performance as opportunities to request a raise or promotion. Creating opportunities to discuss career growth and pay is important but be clear about the goals of your performance tracking conversations throughout the project lifecycle.

It is important to communicate the purpose and expectations of performance monitoring, and to make sure that the employees understand that it is not a review or an opportunity to get a raise, but rather a feedback loop to help them improve, grow and be heard. Invest time in creating a structured process where the discussion points are consistent and allow both the worker and employer to provide feedback about the work being done, the team and ways to improve.

Focus On Technical and Cultural KPIS

Performance isn’t only measured in time and output. How a worker adapts to your company culture and adheres to your standards are also important metrics to monitor. Therefore, a worker performance monitoring process should account for both the technical and cultural factors. The technical KPIs are related to the quality and quantity of the work. This can be how well the employee can perform a task, follow directions and meet deadlines. Cultural KPIs are related to the worker’s alignment with the company's values, such as how well they work with others, communicate feedback, and show motivation to learn and grow. Both technical and cultural KPIs are important for improving retention, identifying and coaching future leaders, and ensuring the quality and safety of the work.

Have A Structured and Consistent Approach

Any performance monitoring program that isn’t well planned and consistently executed is likely to fail or provide inadequate data about your workforce. Along with being transparent and factoring in technical and cultural KPIs, your monitoring program needs to be a steady routine. Workers should be able to put the dates for your discussions on their calendars. Your supervisors and foreman should be trained on how to conduct these discussions and make it a priority of their job.
A structured and consistent approach also ensures that you are evaluating all your workers fairly and objectively. You can use the same criteria and metrics to assess their performance and provide them with constructive feedback. This way, you can avoid any bias or favoritism that might affect your judgment or create a negative perception among your workers. A structured and consistent approach also helps you track the progress and improvement of your workers over time and reward them accordingly.

Have Scalable Resources

Construction megaprojects are subject to rapidly changing headcounts, especially when finding labor is a challenge. A degree of flexibility is needed to properly adjust for new hires and workers taking on new roles. This is especially difficult if your existing support structures can’t keep up with an increasing number of workers.

This is an area where companies can partner with Aerotek’s construction support services team to provide mid-level management and the labor force to do performance monitoring. By taking on some of the project management and liability, we save our clients time while increasing retention and improving the quality of work.

Employ A Dedicated Performance Monitoring Professional

Employee performance monitoring is most effective when conducted by an individual. Typically, foremen and construction managers handle this duty, but it becomes challenging for them to adequately focus on performance monitoring when managing a large construction workforce.

Successful performance monitoring programs tend to have a singular person responsible for ensuring the necessary actions are taken. This could be someone from human resources, a project engineer or someone else from outside the field who is familiar with the project.

Over my years at Aerotek, we have offered our customers the services of a Client Engagement Manager (CEM). This role includes onsite supervision of employee performance. This support allows foremen and supervisors to concentrate on ensuring the project progresses efficiently.

How Aerotek Can Support Performance Monitoring 

Recently, we supported several initiatives for one of our client’s megaprojects including optimizing their performance monitoring. They are a full-service, multi-trade company in California and their project involved building a 1.1 million square foot data center with a tight timeline and a high demand for skilled workers. We provided over 300 electricians, plumbers, carpenters, and other tradespeople, as well as project coordinators and safety managers. We also implemented a performance monitoring program that included weekly check-ins, feedback sessions, and recognition awards. As a result, we helped the client achieve a 95% retention rate and a 98% quality score.

Read The Full Case Study Here

The importance of effective worker performance monitoring in construction megaprojects cannot be overstated. The scope and complexity of these projects demand a structured and consistent approach to tracking and analyzing worker performance. By focusing on both technical and cultural KPIs, creating a feedback loop, setting clear expectations, and ensuring scalable resources, companies can significantly enhance their monitoring practices. These strategies not only contribute to the success of the project but also foster a culture of continuous improvement and employee engagement.

The construction industry is evolving, and with the generational shift in the workforce, it is imperative to adapt our performance monitoring to align with the expectations and preferences of a diverse workforce. By doing so, we can ensure that our megaprojects are not only completed on time and within budget but also become exemplary models of efficiency, safety and worker satisfaction.