New agreements are a necessary evil for master craftsmen if technology is not in place

When new agreements come into effect, one of the biggest time drains is updating payroll data and rates in IT systems. That time can be saved with the right software solutions, which also reduce the risk of errors.

On May 1, a series of new agreements came into force, and for many master craftsmen this normally means extra work to ensure correct payroll. Whether the new agreements take effect immediately or even retroactively after a long negotiation period, they involve new rates, allowances, and deductions that payroll managers must keep track of amid their daily tasks.

- We know that many small and medium-sized craft businesses spend unnecessary time on payroll administration. It is a necessary evil for many master craftsmen, who are excellent at their trade and highly specialized, but where payroll itself is not their main focus — it just needs to run. And when new agreements occasionally come into effect, a lot of things get thrown up in the air, which then have to be handled again before everything “just runs” smoothly.

Cause of major frustrations 

This is according to our Senior Manager at the software company, Charlotte Simmelkjær. She has worked for many years with the payroll system EG Lønservice, a tool developed specifically for industries such as construction, plumbing, and electrical work, where many employees are covered by agreements that are continuously negotiated and updated. She sees major frustrations from both small and large companies if new agreements are not followed to the letter.

- It takes away the time craftsmen have for what they are truly passionate about — their craft. And it’s not something they do out of malice — that’s why the right payroll systems can ensure that employees get what they are entitled to, without spending a lot of time reading legal clauses, says Charlotte Simmelkjær.

The future of payroll in the construction industry is digital 

When payroll follows the agreements, it creates security for both employees and employers. Therefore, it makes sense to let digital payroll systems take control when creating overviews — from holiday accounts to absences and pensions — so that master craftsmen can use their working time more effectively. 

- Our users tell us that it gives them peace of mind to know that the system keeps track of the rules. It removes uncertainty and frees up resources. Digital payroll administration is no longer reserved for the administrative departments of large companies. It should be accessible and easy to use. And that is exactly what we have built our payroll service system for — both now and in the future, concludes Charlotte Simmelkjær.