Managing employee benefits in the construction industry is no easy task, especially with fluctuating workloads. Traditional monthly health insurance can strain cash flow during slower seasons and leave employees without coverage during layoffs—resulting in dissatisfaction and higher turnover.

Enter Hour Banking

Hour banking offers construction companies a cost-efficient and employee-friendly solution. Employees “bank” extra hours worked during busy periods, ensuring continuous benefits coverage during reduced hours or downtime. This system is tailor-made for industries like construction, where workloads are often seasonal or project-based.

Key Benefits of Hour Banking for Prevailing Wage Projects

1. Cost Efficiency
   • Align benefit contributions with actual hours worked.
   • Avoid unnecessary expenses during slow periods.
   • Reduce payroll taxes by allocating dollars to benefits instead of wages.
2. Employee Retention
   • Ensure employees maintain benefits, even during layoffs or reduced hours.
   • Boost morale and loyalty by offering consistent support.
3. Flexibility
   • Adapt benefit contributions to suit variable workloads for greater fairness and accuracy.

The Bottom Line about Hour Banking

Health benefits need to be annualized, but with seasonality in your workforce, hour banking can be a win-win for contractors and their teams. It cuts costs, strengthens financial stability, and fosters a culture of trust among workers. For construction companies looking to remain competitive, this approach offers a smarter way to manage benefits and create a more engaged workforce.

Contact the Beneco team today if you would like to learn more about taking advantage of hour banking for your team!