The verdict in three sentences
For a network of 6 staffing agencies in Berlin managing 700 temporary workers on assignment every week, custom software for assignment contracts, timesheets and payroll preparation costs, as a 2026 order of magnitude, EUR 45,000 to 90,000 excluding VAT. The main gain shows up in the weekly close, which drops from 2 days to about 4 hours once hours are entered and approved on mobile. The trap is to buy a recruiting tool hoping it will handle temp payroll, when the real complexity lies in the payroll and billing rules specific to temporary work.
What the software costs, module by module
With paper timesheets, each agency re-keys hours, checks premiums, prepares payroll inputs and recalculates everything for the client invoice. One mistake on a pay rate or a night shift is paid twice: as a dispute with the worker and as a credit note for the client.
| Module | Core version | Full version |
|---|---|---|
| Worker records (documents, certifications, medical checks) | EUR 5,000 | EUR 9,000 |
| Assignment contracts and amendments signed online | EUR 7,000 | EUR 13,000 |
| Automated social insurance registration and legal deadline tracking | EUR 3,000 | EUR 6,000 |
| Mobile timesheets approved by the client | EUR 8,000 | EUR 15,000 |
| Premium engine (night, Sunday, overtime, sector supplements) | EUR 7,000 | EUR 15,000 |
| Payroll export and client billing by rate | EUR 6,000 | EUR 14,000 |
| Client portal (orders, approvals, invoices) | EUR 4,000 | EUR 10,000 |
| Testing, GDPR and go-live | EUR 5,000 | EUR 8,000 |
| Total | EUR 45,000 | EUR 90,000 |
Under the German Temporary Agency Work Act (AÜG), the leasing contract must be in writing before the worker starts, assignments are capped at 18 months with the same client, and equal pay applies after 9 months. Software that blocks an assignment until these checks pass sharply reduces the risk of fines and reclassification.
Custom build, off-the-shelf software or an improved spreadsheet
The managing director compares three options. The right calculation runs over 5 years and the real volume of assignments, not the entry price.
| 2026 option | Upfront cost | Recurring cost (order of magnitude) | Main limit |
|---|---|---|---|
| Paper and shared spreadsheet | EUR 0 | 2 days of closing per week per agency | Keying errors, no audit trail |
| Off-the-shelf staffing software | EUR 5,000 to 15,000 setup | EUR 4 to 9 per active worker per month, i.e. EUR 2,800 to 6,300 a month | Rigid payroll rules, vendor dependency |
| Custom software | EUR 45,000 to 90,000 | Maintenance of EUR 600 to 1,500 a month | 4 to 6 month delivery, demanding specification |
| Module added to the existing ERP | EUR 20,000 to 40,000 | Existing ERP licences | Usually weak mobile experience for workers |
| Digital staffing platform | EUR 0 | Shared margin of 3 to 8 points | Loss of the client relationship and data |
For 700 active workers, off-the-shelf software costs EUR 34,000 to 76,000 a year. Custom software pays off from the second or third year, provided the network has specific rules (varied collective agreements per client, equal pay calculations, fixed-price billing) that a standard tool handles poorly.
How to scope the project without mistakes
Three workstreams decide success. First, mapping the payroll rules: each client applies its own collective agreement, and equal pay obligations require comparing the worker with the client's own staff. Second, mobile time entry must be simpler than paper: one screen, pre-filled shifts, one-tap approval by the client's team lead. Third, integration with the payroll system avoids double entry.
| Step | Indicative duration | Deliverable |
|---|---|---|
| Workshops with 2 pilot agencies | 3 weeks | Map of rules and flows |
| Mobile timesheet prototype | 4 weeks | Test with 50 workers |
| Contracts, registration and payroll build | 8 to 10 weeks | Full version in acceptance testing |
| Agency-by-agency rollout | 6 weeks | 6 agencies live |
| Stabilisation | 4 weeks | Measured weekly close |
For a project of this size, Kolonell works on a fixed price over a written scope, with custom business software split into lots and monthly maintenance priced according to the service level required on payroll.
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Mini case study
Jonas, managing director of a network of 6 staffing agencies in Berlin (fictional profile), currently spends 2 days of closing per week per agency, i.e. 12 person-days. At a loaded cost of EUR 280 per assistant day, that is EUR 3,360 a week, about EUR 161,000 over 48 weeks. With mobile entry, closing drops to 4 hours per agency, i.e. 3 person-days a week and EUR 40,300 a year. The gross saving reaches EUR 120,000 a year. Software at EUR 70,000 plus EUR 12,000 of annual maintenance pays back in 8 to 9 months, before counting fewer payroll disputes.
FAQ
How long does it take to roll out custom staffing software?
Allow 4 to 6 months between the first workshops and go-live across 6 agencies. An agency-by-agency rollout over 6 weeks limits the payroll risk.
Will temporary workers really use the timesheet app?
Yes, if entry takes under 30 seconds and works on an entry-level smartphone. In well-run rollouts, 80 to 90 % of timesheets go digital by the second month.
Can the software produce the payroll filings?
It prepares the variable payroll inputs and exports them to the payroll system, which handles the statutory filings. Building a full payroll engine would cost about EUR 30,000 more and only makes sense for very large networks.
Who approves hours on the client side?
The client's supervisor receives a notification and approves in one tap. Without approval within 48 hours, an automatic reminder goes out, which secures billing.
Must the data be hosted in Germany?
Medical check data and ID documents require hosting in the European Union and an up-to-date GDPR record of processing. EU hosting costs EUR 150 to 400 a month at this volume.
Let's scope your project. Send us your assignment volume, client agreements and current payroll system: we price a scope in lots, with an indicative budget and timeline. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
