The Hidden Profit Killer: Why Tracking Employee True Cost to the Company Is Essential for Construction Businesses

Here's a wake-up call about employee true cost to the company that'll make your blood run cold:

You just finished a $75,000 fabrication job using real-time job costing software to track hours. Your crew stayed within budget. Everything looked profitable. Then month-end financials arrive showing 5% profit instead of your expected 25%.

What happened? You don't know the employee true cost to company including labor burden, overhead, and overtime premiums. This blind spot destroys construction businesses daily through hidden construction project tracking and scheduling failures.

👉 Watch this explainer: Why Real-Time Job Costing Protects Your Profits

Employee True Cost to the Company - The Math That's Killing Your Profits

Let me show you why employee true cost to the company calculations are make-or-break for your business:

Your $40/hour welder actually costs:

• Base wage: $40/hour

• Labor burden: (benefits, taxes, workers comp): $12/hour

• Overhead burden: (office, trucks, insurance): $50/hour

• Real employee true cost to company: $102/hour

Add overtime and you're at $135/hour. If you're charging $125/hour, you lose $10 every hour they work.

As you can see in our demo example below, $40.86 employee Tammy Hill true cost to the company is $97.73. That's because the company's Overhead Burden Rate is $42.54, which is calculated daily, This leaves $15.67 for the Labour Burden Rate.

According to Buildertrend's labor burden research, contractors underestimate employee true cost to company by 20-30%. Procore's overhead analysis shows overhead alone adds $40-60/hour to real costs.

This is why ProjectWatchPRO's real-time job costing software calculates true costs every 60 seconds.

Real-Time Job Costing Software Stops Hidden Profit Bleeding

Traditional tracking systems only show hours worked – not financial impact. Real-time job costing software changes everything.

ProjectWatchPRO calculates:

• Employee wages with overtime premiums

• Labor burden (real cost of benefits/taxes)

• Overhead burden (actual operating costs)

• Live profit margins updated every 60 seconds

Our real-time job costing software delivers instant construction profitability software insights:

• Active jobs and true profitability

• Efficiency rates (billable vs. non-billable hours)

• Actual costs vs. invoicing

• Real-time construction KPIs for immediate action

When projects start bleeding money, you know today – not weeks later.

Construction Project Tracking and Scheduling That Protects Margins

Construction project tracking and scheduling must include real cost visibility. ProjectWatchPRO's job tracking and scheduling software provides:

• Task assignment with cost implications

• Drag-and-drop scheduling showing real-time cost impact

• Automatic billable vs. non-billable time tracking

• Budget vs. actual monitoring while adjustments are possible

Our construction project tracking and scheduling system replaces spreadsheet chaos with one profitable dashboard.

Job Tracking and Scheduling Software for Real Profitability

Job tracking and scheduling software must calculate employee true cost to company in real time. ProjectWatchPRO combines:

• Real-time job costing software with live cost updates

• Construction project tracking and scheduling with profit visibility

• Construction profitability software with instant alerts

• Real-time construction KPIs for immediate decision-making

Engineering News-Record reports companies using real-time job costing software see 15-25% profit improvements within 12 months.

Construction Profitability Software - Stop Flying Blind

Construction profitability software must show employee true cost to company while you can act. ProjectWatchPRO's real-time construction KPIs help you:

Bid accurately using real employee true cost to company data

• Monitor profitability during work execution

• Protect margins against cost creep

• Eliminate "profitable" jobs that secretly lose money

Check our construction profitability software features and blog insights.

Real-Time Construction KPIs That Actually Matter

Real-time construction KPIs must include employee true cost to company calculations. Our real-time job costing software tracks:

• True labor costs with burden and overtime

• Project profitability updated every 60 seconds

• Resource allocation efficiency

• Margin protection alerts

Every day without real-time construction KPIs is another day hidden costs destroy margins.

➡️ Visit ProjectWatchPRO.com for real-time job costing software that shows employee true cost to company.

📅 Book a demo and stop losing money on "profitable" jobs.

👉 Read our blog for more construction profitability software strategies.