INSIGHT: Construction payroll software – key players and trends


Computerised payroll systems are revolutionising the way UK construction companies choose to pay workers – with housebuilding firms shown to be the market leaders in uptake and implementation.  

Housebuilders will drive adoption of payroll software in the construction industry to 2030 – according to business analytics company Precision Reports – as fresh data reveals the UK is among those regions with the highest uptake. 

The Construction Payroll Software Market report analyses trends, key players, and market share activity up to 2023, and attempts to predict application, end use, and market behaviour by major regions to the end of the decade.  

As well as offering key insights into investment trends and strategies by country and sector, it makes the case for payroll software in construction while highlighting critical safeguards firms need to consider when upgrading their IT systems.  


Payroll is a business-critical operation for any firm, and choosing a payroll software system over manual processing can be vital in that success. 

Primarily, it enables contractors to track and pay employees across multiple jobs at different rates accurately.  

Large firms, and some SMEs, regularly deal with various subcontractors, contractors, and temporary site teams, which can potentially complicate payroll, as well as other accounting functions such as procurement, goods received and deliveries. 

The inability to pay workers and suppliers accurately and on time can result in low morale, poor performance, and even reputational damage and legal disputes.    


  • Faster payroll calculations and deductions  
  • Accurate payslip generation 
  • Easily calculate bonuses, expenses, paid annual leave  
  • Manage P45, P60 and returns to HMRC  
  • Simplify complex taxation  
  • Data storage, including payslips and annual reports 
  • Task automation, including year-end reports 
  • Reduce the burden of compliance 

It also helps to more accurately record and calculate employee attendance and annual leave by linking to timesheet systems across departments and even individual jobs and contracts. 

Forecasting staff costs and budgets can also be more easily gauged by entering hypothetical numbers about the cost of a worker.  

Things to think about 

Like any IT system, however, payroll software can have potential weak points, exposing companies to the possibility of data loss and theft, lapses in quality and control, and cyber-crime. 

This is particularly important after a recent study revealed construction firms often fail to protect themselves from cyber criminals – and that businesses in the industry are among those sectors “least likely” to have board members taking responsibility for cyber security. 

Cyber-crime is a national scale issue, which costs the UK economy an estimated £27 billion per annum, according to the UK Government 

Alarmingly, though, construction businesses are among those sectors “most likely” to fall victim to cyber-facilitated fraud, according to the Cyber Security Breaches Survey (CSBS).  

Construction was also found to be “less likely” than other sectors to have a range of technical rules and controls in place to help minimise the risk of cyber security breaches. This failure was also true in previous years.    

Cost is also a major factor when implementing payroll software. Full featured platforms are usually more expensive than manual systems, requiring additional in-house computer equipment, resources and skilled operators. 

Wider market view  

The construction payroll software market was valued at USD$0.943 billion in 2022 and is forecast to grow to USD$1.21 billion by 2030, at a CAGR (compound annual growth rate) of +6% from this year. 

Major growth will be driven by North America, whose rate of uptake will rise “considerably” to 2030, affecting the wider market. 

However, the market in Europe, including in the UK, is expected to see major upward moves in CAGR during the forecast period too. 

Indeed, the UK is second only to North America in those regions leading uptake of payroll software in the global construction market, followed by the Asia-Pacific, South America, Middle East and Africa regions. 

But it was housebuilders – and general contractors and government contractors – who were said to be the leading users of payroll software, and who are driving its growth in the global construction market. 

“The market is growing at a steady rate and with the rising adoption of strategies by key players, the market is expected to rise over the projected horizon,” the report states. 

Adding: “Despite the presence of intense competition, due to the global recovery trend is clear, investors are still optimistic about this area, and it will still be more new investments entering the field in the future.” 

Technological innovation and advancement will further optimise the performance of payroll software in years to come, in turn ensuring it is more widely used in downstream applications, including year-end reports, compliance, bonus calculations, Good Received Notes, Proof of delivery, and elsewhere. 

In 2022, product types that held the largest market share were Cloud-based systems and on-premises platforms. 

Key players  

  • Timesheets 
  • Built for Teams 
  • Branch 
  • Workday  
  • Dayforce  
  • BambooHR 
  • Roubler 
  • Ascender Payroll  
  • Hubstaff 
  • Square Payroll 
  • QuickBooks Payroll 
  • Profit 
  • iCIMS Talent Cloud 
  • Darwinbox 
  • RUN Powered by ADP 
  • UKG Ready 
  • Paycor 
  • Time Tracker 
  • Paychex Flex 
  • Cognology 

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