Recruitment agencies have a diverse range of complexities associated with payroll management. There is a magnitude of legislations in place to protect temporary workers such as minimum wage regulations, (which are subject to annual changes), the agency workers regulations, holiday accruals, SSP and much more. In addition, there are different types of staffing solutions including temporary workers, salaried staff and those on long-term contracts that could raise issues with maternity and paternity pay in addition to auto-enrolment processes.
For the smaller sized recruitment company, it is a minefield to navigate efficiently. For the larger recruitment agencies, it will be a drain on internal resources to manage everything in-house.
Streamlining payroll processes that aren’t using automation for timesheet collection and collation to pay staff based on the actual time worked and not estimates is time consuming. That’s time your team could be doing more productive tasks that would work to sustain and build your recruitment agency, rather than have staff do the repetitive, mundane tasks associated with payroll.
Compliance is the one bottleneck every recruitment agency is going to experience. Next in line is the expense of necessary IT infrastructure, especially for smaller sized and new recruitment companies due to the introduction of GDPR (General Data Protection Regulation).
Data has to be stored securely, staff need paid on time, minimum wage requirements need to be monitored the correct way to ensure proper taxation and accurate NI contributions. Various rates of pay also need managed carefully such as hourly paid temporary workers, salaried staff and the monitoring and management of holiday pay issued, ensuring it is based on days worked by temp workers in line with the agency workers regulations.
All of those tasks can be securely and competently outsourced to a trusted third party to manage your entire payroll for all your staff… temporary, permanent and contract workers.