Q: Luke, tell us about your background?

A: Before my professional career began, I worked in construction for my uncle’s masonry business started by my grandfather. I started out as a union laborer helping scope and bid various projects. This experience helped me through school and once out of college, I started in consulting and sales. The experience of those early years gave me valuable insight into key challenges facing construction companies processing union payroll. I bring this experience to the table every day as I listen to the unique challenges my clients face.

Q: What does SIS LLC provide in the certified and union payroll sector?

A: For over 25 years, SIS LLC has been leading construction companies through their ERP needs with service solutions. One of our unique solutions for construction companies centers around our Advanced Labor product. SIS Construct 365 Advanced Labor (AL) helps organizations seamlessly move from manual to automated processing of their union and certified payroll which is why our solution is a best fit for union and certified payroll companies.

Another very key reason we are talking about this now is the labor shortage in construction. An overlooked consequence for organizations not processing payroll correctly is the effect it has on employee morale and a company’s reputation. With so many unfilled skilled labor positions open, it is getting increasingly more challenging to fill the positions. Once filled, the last thing the company needs is to lose employees because they cannot pay their employees correctly. At that point, they are taking a hit on lost project completion revenue and the organization starts to earn a reputation where no one wants to join.

Q: What stage are manual payroll prospects in when they reach out to SIS?

A: Typically, when an organization reaches out to SIS LLC, they are just beginning to look at payroll automation solutions to add to their current process. Companies either have engaged with a third-party payroll provider or need a union payroll solution. Or they come to us looking for a recommendation for a third-party payroll solution and union payroll processing.

Q: When manual payroll managers consider a new automated union payroll solution, what is their focus?  

A: We have all heard the phrase, “never mess with employee pay.”  So, payroll managers, finance directors, controllers, and CFOs, are always looking for ways to make sure payroll processes are 100% error free, on time, and in accordance with all compliance needs. Payroll departments that are manually processing payroll for a large, multistate, multi project work force, know how challenging meeting these basic error free requirements is itself. Add the complexities of union and certified payroll and the risk factor to ensure payroll processes error free increases extremely high. This is even more challenging if the payroll staff is a team of one or two people. Because of this, eliminating error, eliminating the risk for penalties and fines, creating efficiencies to reduce time, reduce costs, and doing all this on each payroll run is the automated solution a payroll leader requires. This is what companies come to SIS LLC to find.

Payroll managers looking for research to help them move to an automated solution look for these factors:

• Compliance with Union Rules: Making sure the new system adheres to the specific regulations and agreements set by the union, including wage rates, overtime calculations, and benefits.
• Automation and Efficiency: The ability of the new system to automate processes, reducing manual labor and the potential for human error. This includes automated calculations for deductions, contributions, and other payroll-related items.
• Integration with Existing Systems: How well the new solution integrates with the current HR and accounting systems, to ensure seamless data transfer and reduce the need for manual input.
• Reporting and Analytics: The capability of the system to generate detailed and customizable reports for internal use and for compliance with union requirements.
• User-Friendliness and Training: The ease of use of the new system and the training required for staff. A user-friendly interface can reduce training time and increase adoption rates.
• Cost Effectiveness: The overall cost of the new system, including initial setup, maintenance, and any additional fees. Payroll managers will need to consider if the long-term benefits justify the investment.
• Data Security and Privacy: Ensuring the new system has robust security measures to protect sensitive employee data and comply with privacy laws.
• Customer Support and Service: The level of customer support provided by the solution provider, including training, troubleshooting, and updates.

Q: What reasons do payroll managers consider when they want to make a business case for payroll automation in their organization?

A: For all the reasons listed above and they need a process that is easy for employees to interact with and ensure can scale with the growth and added complexities companies face today. Looking for a solution that is also cost effective over the long term is especially important, but you need to be careful not to forget that cost effective also includes all the intangible gains, like morale and reputation, but also the reduced need for heavy staffing costs.

This is a good list to use when researching automated payroll solutions:

• Compliance Needs: Changes in union regulations or labor laws might necessitate a system that can better manage these new requirements.
• Efficiency Improvements: If the current system is inefficient, prone to errors, or requires excessive manual input, a new system might offer considerable time and cost savings.
• Technological Advancements: Newer systems might offer features that were not available in older systems, such as better integration capabilities, cloud-based services, or advanced analytics tools.
• Cost Savings: Over time, a more efficient system could be more cost-effective, even considering the initial investment.
• Employee Satisfaction: A system that is easier for employees to interact with, provides clearer information about deductions and benefits, and processes payments more reliably can increase overall employee satisfaction.

Ultimately, the decision to switch to a new union payroll solution would depend on how these factors align with the organization’s specific needs and goals.

Q: What are the metrics for measuring the time it takes to manually process payroll versus the cost to automate?

A: The cost to automate for a company with one-to-three-person payroll staff in a 1000 employee company is the risk. It is off the charts. The cost to do that digitally is much less than processing manually.

Depending on the size and complexity of the labor force and the capability of the payroll department, they will need to look at how high their risks are, what mistakes have cost them to date in in fines and labor churn, as well as what does their growth and cost look like in 1-3-5 years.

Some companies may read this and look internally to say we need a solution today. Others may say we are good for now but with growth it will make sense to look at a solution down the road. And of course, there are others who say, we are fine just the way we are, and we are not changing.

Q: We know the solution is automating union and certified payroll for companies processing manually. How do companies determine which solution to pick among all their options?

A: To answer that, the organization needs to understand their own needs. What do they need to do better today and where will they be in the future? If an organization sees the risks they are facing and understands the consequences of those risks, it is quite easy to find a solution that will work for them. Our SIS Construct 365 Advanced Labor solution is designed for large, complex payroll needs and for organizations looking for a solution that is scalable and can fully integrate into their ERP software and any third-party payroll provider. It all starts with an understanding of themselves to address their complex payroll requirements.

Q: What is your THESIS statement?

A: Companies who process union and certified payroll and are doing this manually are at a substantial risk for payroll errors. In an environment where we have labor shortages, the last thing a company wants to risk is the accuracy of an employee’s paycheck.

Learn about SIS Construct 365 Advanced Labor