Software for a temp staffing agency: assignments, timesheets and payroll

The verdict in three sentences

A London or Berlin staffing agency placing 350 temporary workers a week loses most of its margin in three places: assignments confirmed late, timesheets retyped by hand and weekly payroll corrected after the fact. Off-the-shelf staffing software costs roughly £350 to £1,300 (400 to 1,500 EUR) a month and handles the standard flow well, but it struggles with clients that impose their own clocking systems, holiday pay rules and charge rates negotiated client by client. The right choice depends on volume, on how many clients have specific rules, and on how much margin you are leaking today.

What staffing software really has to cover in 2026

In the UK, the agency must issue a key information document and written terms before the assignment starts, apply the Agency Workers Regulations (equal pay and conditions after 12 weeks in the same role) and handle holiday pay, often accrued at 12.07 % of hours worked. In Germany, the AÜG caps an assignment at 18 months and enforces equal pay after 9 months. Generic payroll tools rarely track the 12-week or 9-month clocks per worker and per client, so a payroll officer ends up doing it in a spreadsheet.

Charge rate mark-up: where the margin is won or lost

In industrial and logistics staffing, the charge rate usually sits at 1.8 to 2.1 times the gross hourly pay once employer costs, holiday pay, pension auto-enrolment and agency margin are included (UK agencies often express it as a 25 to 40 % mark-up on the full pay cost). A 0.05 error on a large account costs more than a year of software. The tool must therefore support a rate per client, per job title and sometimes per shift (nights, Sundays, bank holidays).

Our most frequent recommendation is hybrid: keep a certified payroll engine for payslips and filing, and build the layer that actually makes money on a custom basis: the client timesheet approval portal, the charge rate rules and invoicing. That is the scope of our custom web applications.

Timesheets: the weak link

The timesheet triggers both payroll and the invoice. When it arrives on Monday morning as a phone photo or a scanned PDF, every minute of retyping is paid twice. Large warehouse clients around London or Berlin often run their own clocking systems: the software must import a clocking file, offer mobile entry to the shift supervisor, and block payroll until the client has approved. A timestamped approval history also protects the agency when an invoice is disputed.

Mini case study

Sarah runs a staffing agency in east London focused on warehousing and light manufacturing. She places 350 workers a week, 35 hours on average at £12.60 gross per hour, with an average charge rate of 1.9.

• Weekly revenue: 350 × 35 h × £12.60 × 1.9 = £293,265.
• Hours not billed or wrongly rated, estimated at 0.6 %: about £1,760 a week, or £84,500 over 48 weeks.
• Timesheet retyping: 350 × 6 minutes = 35 hours a week, the equivalent of one full-time role (around £36,000 a year with employer costs).

A full SaaS at £1,300 a month costs £15,600 a year but leaves her three biggest clients outside the portal for lack of a clocking connector. A complex custom layer, around 15,000 EUR, plus Standard maintenance (114 EUR a month, 1,368 EUR a year), recovers most of the lost hours: even if she only wins back half of the £84,500, the project pays for itself in under six months.

FAQ

Does the software need to track the 12-week AWR clock?

Yes, ideally per worker and per client role, with an alert at week 10. Missing the switch to equal pay on 50 workers can mean several thousand pounds of back pay plus a tribunal risk.

How long does it take to move from spreadsheets to staffing software?

Plan 4 to 6 weeks for an entry-level SaaS and 2 to 3 months for a full solution including worker data migration. A medium-complexity custom build takes 3 to 4 months.

Are electronically signed assignment terms valid?

Yes, in both the UK and Germany, as long as you keep the evidence and the timestamp. E-signature mainly helps you confirm terms before the first shift, which is where most compliance gaps appear.

Can we keep our payroll software and only add a client portal?

It is often the best balance of cost and risk. The portal collects approved hours and pushes them to payroll and invoicing, with maintenance from 35,000 FCFA (53 EUR) a month.

What charge rate should a logistics agency aim for?

In 2026, agencies in London and Berlin typically land between 1.8 and 2.1 times gross pay depending on role and volume. Below 1.85 on forklift roles, net margin gets very thin once absences and holiday pay are absorbed.

Let's scope your project. We define the scope with you (client portal, timesheets, invoicing, payroll connectors) and a realistic go-live plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.