Pricing Transparency – Construction Hiring

Do these two concepts sound bipolar? Fixing a price for the tradespersons in the construction hiring process is inconstant and inconsistent. This is due to the complex and archaic models of sourcing the workforce for projects. However, if the compensation of the tradesmen is divulged well in advance the entire process becomes smooth and easy.

Revealing the budgeted rates of hire along with the various trade requirements for a particular site even before the contractor or worker arrives on the project site results in many advantages.

Benefits of transparent pricing

Less room for misunderstanding in terms of the number of working hours, nature of the job, unit of measurement, and the price.?

Time cost of negotiation, since both parties have already agreed upon the price even before they interact, time taking negotiations can be avoided.?

Peer Compensation: At the site, there is no room for wrongly perceived peer compensation. It is observed that in an organisation that opts to pay secrecy over its transparency, most employees assume that they are paid way less than their peers.

Better Market Image: Studies have shown that jobs that are upfront about the compensation see a marked increase (of nearly 50 percent) in the number of candidates who apply. The higher the demand for a job or hirer, the better their perceived value or reputation in the market.

Negotiation skill Vs Actual skill:? Tradesmen are mostly unschooled or unlettered. Not all are capable of negotiation. While hiring groups of tradesmen working for different contractors or aggregators, those who can negotiate better may get a better price over the rest who are forced to settle for lower compensation. However, being able to negotiate well is not a measure of their actual skill or trade expertise. This wage exploitation often leads to poor performance even from some of the better-skilled workmen.

The Solution…

A unique platform that can transcend these human aberrations arising out of human dependency is kamayoga.app. This intelligent AI-based search engine not only provides transparent pricing but also matches the exact requirement of the project like the nature of the trade, price, unit of measurement, and location across India. It offers friction-less price discovery, where the economics of demand and supply play the key role.

The hirer (builder or construction company) can, not only get to see the various prices offered at different locations by the service providers for a particular trade but can also get to see competitor pricing. This allows them to make an informed decision to hire.

Similarly, the service provider (labor contractor or tradesperson) can access prices quoted by the builders at various locations for a particular trade and get to view competitor pricing also. This will enable them to quote their services as per their skillset and find price parity, thus providing a level playing field for both the service provider and the employer.?

Possibility of Poaching

Builders are often exposed to the poaching of their manpower in conventional hiring when a competitor builder offers a tad bit higher quote than theirs.? In a platform like KarmaYoga, there is little or no chance to poach your prospective tradesmen. Since the app provides dynamic pricing as soon as the price, trade, and location match happens, both the parties are connected instantly and moved into fulfilment status. While both the parties are given an opportunity to change their prices after their initial quote, they can modify their quote only until they are matched, after which the price remains binding on both the job offeror and service provider.

Construction recruitment can now be formalised using Karmayoga!