Why recruitment agencies should consider outsourcing their payroll

Running a recruitment agency is a full-on job.  We understand how complex payroll is for recruitment agencies, not only are you responsible for paying your own employees but the ever-changing pool of temporary candidates too.  Having to manage a large number of workers that change from day to day makes the payroll difficult, but don’t panic, we are here to help. Hopefully, after reading this blog you’ll understand why recruitment agencies should consider outsourcing their payroll!

Reduces administration

Large amounts of administration reduce the time available to spend on other tasks that can benefit the business.  The fluctuations week on week also sees recruitment payroll administration increase, which adds to payroll costs.  Outsourcing your payroll with Backoffice Nationwide means that this level of administration is removed as we will do all that for you. 

Recruiters must handle complex payroll needs for foreign workers

Managing the tax and national insurance arrangements for foreign workers can be tricky depending on the country they are from and the duration of their stay in the UK.  Due to the nature of recruitment, a large majority of foreign workers will make their way on to the recruiters’ books, which further adds complexity to the payroll.  Not only this, but due to Brexit, there is still a chance that rules and regulations can change again.  This is something that you don’t need to worry about when outsourcing your payroll. 

Recruitment is a growing industry

In 2020, the recruitment industry employed around 148,000 people.  This number is only going up.  Just to be clear, that is just the number of people that work in recruitment, not the people they are recruiting.  With a rapidly growing workforce, recruitment agencies are starting to see the burden of in-house payroll.  Outsourcing payroll allows this time to be re-allocated to other tasks that are more beneficial to the company. 

Accuracy

As the numbers of workers grow, so does the likelihood of human error.  Errors in payroll made by recruitment agencies can be damaging to brand and client relationships.  Outsourcing your payroll to a company like Backoffice Nationwide that specialises in the prompt and accurate payment of contractor and temporary workers helps to ensure the accuracy of your recruitment payroll. 

Keeping track of every worker’s status

Keeping track of the wide variety of worker status and contact types can be a big challenge for recruitment agencies.  When your pool of workers includes employed, zero hours, self-employed, umbrella workers and more, it’s very easy to lose track and running payroll can become extremely complicated.  Without an outsourced payroll team that has years of expertise, this can be extremely stressful. 

Hopefully we’ve managed to convince you why recruitment agencies should consider outsourcing their payroll. So, if you want to find out more about our recruitment payroll services, or would like to discuss your requirements, please get in contact with us today.  You can contact us HERE or call us on 01757 610002