The cost and associated resources involved in running an efficient and reliable payroll can soon mount up. It takes a particular skill set, and for many businesses, including recruitment agencies, those costs can easily become a burden. It’s an involved and time-consuming task that takes you away from your core business. Larger businesses are able to maintain payroll departments, but if your business has less than around 30 employees it rarely makes financial sense.
An increasing number of recruitment agencies are seeing the benefits of outsourcing their payroll management to an umbrella company.
How can recruitment agencies benefit from outsourcing payroll?
Outsourced payroll services for recruitment agencies has a number of benefits. Handing it over to an umbrella company can save both time and money. It can remove any compliance headaches and ensure you are keeping up to date with any changes in legislation.
Recruitment agencies need to maintain complex records, with a variety of workers on different contracts often having different employment status. There’s a high workforce turnover that can easily create problems if errors aren’t quickly addressed. Keeping track of these can be time-consuming and requires a depth of knowledge that takes time to acquire.
With an estimated 1 million temporary agency workers on assignments every day, and with that number growing, the recruitment sector has a specific set of challenges when it comes to payroll.
If you work with foreign workers, each will have their own individual set of tax and NI requirements depending on their nationality and the length of their stay in the UK. With so many contract workers in the UK hailing from other EU countries, the final outcome of Brexit negotiations is likely to see further changes.
Outsourced payroll management can help recruitment agencies streamline their services, focus on their core business and be able to adapt in a rapidly changing marketplace.
Save on time and cost
Any time-consuming activity that takes you away from your core business activity ultimately costs you money. It can distract you from working with existing clients, and hinder you in attracting new ones. The less time you spend on the routine administration of your business, the more time you’ll have for helping it grow.
Processing payroll in-house is a resource-heavy administrative task that requires a great deal of attention to detail. As staff numbers in your business grow that demand increases.
Time spent on payroll, crunching large amounts of data and ensuring no mistakes are made is time taken away from other key tasks in the business. There are substantial cost savings to be made by outsourcing payroll merely by freeing up time to concentrate on your core business.
If you calculate the hours your employees currently spend on payroll activities, payroll software costs, training people to use that software, printing and distributing payslips and creating documents, it soon adds up. If you compare those figures to the cost of outsourcing your payroll, you may be well be surprised.
Taking care of payroll can consume a large part of your staff resources. If the staff are not specifically trained to handle payroll or have payroll responsibilities on top of their other jobs, that drain on staff resources can be even greater.
Outsourcing your payroll frees up staff to concentrate on their core roles. It may even allow for a measured reduction in staff numbers. Outsourced payroll can also easily be scaled up as your business grows and develops.
Payroll mistakes can cause real headaches. They often have a huge impact on peoples’ lives and can lead to recriminations and bad feeling. They can be costly to rectify and doing so takes up valuable time when you could be taking care of your businesses core activities.
By outsourcing your payroll to a specialist company, mistakes are much less likely to happen. On the very rare occasions that they do, they can easily be rectified. It’s the job of the umbrella company to get your payroll right and they are highly experienced at doing just that.
How One Click Group can help streamline the payroll for recruitment agencies
At One Click Group, recruitment agencies are the lifeblood of our business. We’ve worked with countless agencies over the years, of different sizes and with different requirements when it comes to payroll management. In everything we do, we strive to add value to the businesses that we work with.
We help recruitment agencies by:
- reducing the admin burden of operating complex in-house payroll systems
- saving you time by chasing late time sheets and dealing with any pay questions
- helping to ensure they you’re fully AWR compliant
- helping to keep candidates happy by ensuring they’re paid on time every time
- handling all tax and NI payments
- providing free training to our agency partners
- setting up commercial arrangements that suit both partners
We’ve invested heavily in market leading systems and ensure hundreds of people are paid every day. As we use the most efficient and up to date software, we’re able to offer a reliable and streamlined service at a far lower cost than the traditional payroll bureaus. We are used to dealing with large volumes of data, and we’re able to set up tailored payroll systems in as little as one day.
Let the specialists take care of your payroll management
As payroll specialists with considerable experience in the recruitment sector, we also work closely with the Institute of Recruiters.
In fact, our Operations Director Mike Keeling is an IOR advisory board member. This close involvement gives us a unique insight into the evolving demands of recruitment agency payroll, particularly in relation to contract workers.
Recruitment agencies work within a continuously evolving legislative framework, and we ensure our partner agencies are completely compliant with any changes.
You can save time and money and be confident that your agency is totally compliant by outsourcing your payroll to One Click Group. Why not get in touch today to find out how our payroll services can add value to your business?
Along with over 13 years experience in the contractor payroll industry, and after spending most of his working life as a financial advisor in the regulated financial services industry, Mike has garnered an extensive network of contacts in the recruitment industry, many of whom trust both him and the One Click Group to handle their accounting. Mike has also been a member of various industry bodies throughout the years, such as the British Institute of Recruiters, in order to champion best practices across the contractor payroll industry.