Training for Field Workers More Important Than Ever

By Jim Jordan

Jim Jordan is director of construction services for Dallas/Fort Worth-based Weaver and Tidwell LLP.

Jordan reports that, according to the U.S. Department of Labor, every dollar invested in apprenticeship training provides a return of $54.

For contractors ever mindful of their bottom lines, there's a particular return on investment, or ROI, that's growing in importance and complexity - money spent to properly train workers in craft and safety.

According to the U.S. Department of Labor, every dollar invested in apprenticeship training provides a return of $54. That's a terrific return. However, the Texas construction industry is finding it increasingly difficult to realize such a lofty return. The problem begins with the fact that many contractors are failing to train their workers. When the economy is strong and they are busy, contractors don't want to take their workers off the job for training. When work slows down, contractors are reluctant to spend money for training. That's why contractors on average spend about 1.83 percent of payroll on training compared to the 2 percent spent by the industrial sector at large.

Not all contractors understand the benefits of formal employee training. Numerous studies have shown that a company's profitability is directly linked to management's willingness to invest in training. A study by the University of Florida School of Building Construction showed that training efforts by one contractor brought a 42 percent increase in productivity, 6 percent reduction in planned versus actual costs and 50 percent decrease in absenteeism and turnover. Not all contractors do that well, but there is a degree of financial reward for those who implement formal training programs.

Many contractors believe that spending money on training is a waste of resources. Their fear is that as soon as they train someone, he or she will quit and go to work for a competitor offering higher wages. However, training someone and then losing them to a competitor is not as bad as having them stay as an untrained worker.

Workers who have not been adequately trained are a drag on a company's financial bottom line, particularly in the building trades. Poorly trained workers tend to make more mistakes, are not as safe and work slower than their better-trained counterparts. The net effect is costly for company owners, and it is noticed by more than just the project owner. Insurance companies are taking note, too. They run out of patience quickly with contractors that have a lot of claims and increasing loss ratios.

Another major reason why craft and safety training should receive greater priority is due to the number of injuries at construction sites, which are rising such that workers compensation costs are nearly prohibitive for many contractors. That is reason enough for every contracting firm to have a formal training program: Training not only improves work skills, it also reduces accidents.

Changing Workforce The construction industry labor force is changing dramatically. About 20 percent of the workforce is now foreign-born, with Hispanic immigrants filling 40 percent of new construction jobs, according to the Washington Group of Boise, Idaho. Between 1996 and 2004, fatal injuries involving Hispanic workers rose 56 percent, and between 2003 and 2004 fatalities among Hispanics rose 11 percent. Earlier this year the Hispanic Contractors Association de Tejas declared a "state of emergency" for Hispanic construction workers in Texas.

Many Hispanic workers are highly skilled. But like some U.S.-born workers, they may not be English literate and may need assistance from someone who is bilingual. DFW International Airport recognized the problem when it began a $2.7 billion terminal expansion project that finished last year. Before entering the job site, all workers were required to complete a 40-hour safety training class. In addition, English speakers were required to learn basic Spanish construction terminology and Spanish speakers were required to learn basic English construction terms. Working on the expansion project were about 14,272 tradespeople, 54 percent of whom were Hispanic. About 6,000 of those workers did not speak English. Simply by reducing some language barriers and emphasizing safety, the project recorded a 3.6 injury rate per 100,000 work hours compared with a 6.9 national average.

Fortunately, contractors do not have to rely on their own resources to implement training programs. The AGC and its various Texas chapters are a great place to turn for help, as is the ABC. Another great resource is the Construction Education Foundation Inc. based in Irving. These trade groups as well as other associations and some universities all have programs to help contractors offer training.