Recruitment agencies are under tremendous pressure to comply with a whole raft of legislation, many of which require setting up new processes, upgrading technology, building in-house expertise and even hiring new staff.
And now, the introduction of IR35 reforms for off-payroll workers, which will come into force April 2017 onwards, has thrown a giant spanner in the works. The burden of determining the employment status, paying correct taxes and maintaining records for PSC contractors will fall squarely on recruitment agencies, which will inject more complexity into an already arduous payroll and compliance process.
To say that running a recruitment company is not easy in these times would be an understatement. One sure-fire way recruitment and staffing agencies in the UK can optimise efficiency and shed costs is through payroll outsourcing. Payroll and compliance are non-core, no-profit functions that can tie up a large number of resources and they demand continuous upgrades. In addition, it is difficult to find and retain in-house staff for monotonous, time-consuming and low-value tasks.
At QX, we have been serving many of the leading recruitment agencies in the UK for over a decade. Through our services, we have been able to deliver many benefits to our clients. Below are some of the key ways we have helped recruitment agencies in the UK:
1. Slash back-office operating costs
Setting up, maintaining and expanding an in-house payroll operation is costly. Processing hundreds of thousands of timesheets every week is a task that takes a lot of time, effort and attention to detail. In terms of the time and effort invested in this process by your employees, the cost is very high.
Our clients have reduced up to 50% of payroll processing costs by outsourcing payroll to QXFA and enjoyed 99.8% accuracy. Needless to say, this also saves your existing staff time and allows them to focus on higher-yield activities.
2. Deliver better experience to employees and clients
Payroll mistakes and late or incorrect payments put a lot of stress on your relationship with your workers as well as clients. When you choose an outsourcing partner who specialises in payroll, you get access to the combined knowledge, infrastructure and technology knowhow of a large organisation. Along with timely and accurate processing of timesheets, you get reliable services that are not impacted when a key member of the staff leaves the service or is otherwise unavailable.
If you outsource to a professional company whose staff is well-trained in resolving queries from clients and workers, you are able to deliver a superb customer experience.
3. Benefit from best practices
Payroll doesn’t enjoy a central position in recruitment agencies and it is often difficult to earmark funds for necessary technology or skill upgrades. As a result, an in-house payroll team often lacks the technology, processes and training required to deliver accurate and speedy processing.
On the other side, professional payroll processing companies invest in automation, process improvement, best practices and staff training – after all, payroll is their bread and butter. By outsourcing your payroll process, you benefit from best practices and high standards of service without having to make a heavy investment in the function.
4. Access watertight security
Successful F&A and payroll outsourcing companies provide services to a large list of clients, spread across the world. They understand that the security of employee data is of paramount importance. They invest in IT infrastructure for storing and sharing data securely. They also guard against cybercrime through powerful firewalls and IT security measures. The payroll and accounts staff is also trained to detect and prevent online or other fraud.
In most cases, it may not be possible or practical for a recruitment company to take such security measures. By outsourcing to a service provider that has already invested in security, you gain all the associated benefits.
5. Ensure better compliance
It is not easy to stay on the top of all the legislative changes by HMRC. It requires an in-depth understanding of labyrinthine laws, remembering various due-dates, and quick response to any changes in the law. It is the job of a payroll services provider to know such laws inside out. In many cases, they are responsible for ensuring the compliance as per the contract.
Outsourcing payroll not only minimises the time investment from your side but also puts you in a position to seek compensation in case there are any errors.
6. Focus on growth
When you find an outsourcing partner you can rely on, you are freed from the worries and hassles related to payroll. All you need to do is share the basic employee & assignment details with the payroll providers and relax while making sure that the employees are paid on time and taxes are paid and reported correctly.
This allows the Finance Departments in recruitment companies to focus on strategies and initiatives that support the company’s growth.
Are you looking for a payroll outsourcing company you can rely on? Please don’t hesitate to get in touch with us!