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Why Outsourcing is vital for Recruitment Agency Payroll

November 18, 2021

Categorised in: Payroll, Recruitment

The recruitment sector plays an undeniably important role in ensuring that the jobs market runs smoothly. It’s for this reason that, for recruitment agencies, efficiency and compliance in all aspects of business is crucial. And, given that payroll is essential to the day to day operations of any company, effective management of this is equally important. Here’s why Payroll Outsourcing is the best solution for your Recruitment Agency Payroll.

 

Why should Recruitment Agency Payroll be outsourced?

The need to improve the efficiency and streamline the cost of administration is universal to virtually every industry, not just recruitment. But there are plenty of other reasons why recruitment agencies specifically should outsource their payroll including:

Increasing competitiveness

The sector has always been a highly competitive one. Between 2017-2018 for example, the REC’s industry trends report estimated that the recruitment sector grew by 11%. This has led to 1000s of new recruitment businesses entering the market, which has increased competition amongst companies even further. With more rival agencies and the potential increase in the number of employees under your management, In-House Payroll is Becoming an Ever-Greater Burden.

Coupled with this is the competition for talent and the challenge to retain candidates, the efficiency and accuracy of their agency worker pay is paramount to success. When efficient and accurate pay is combined with additional benefits and a better and more streamlined process of pay communication and support, the impacts on temporary worker retention are impressive.

Management challenges

Another factor that can make in-house payroll more difficult for recruitment agencies are the many management challenges that come with it. With huge volumes of weekly temp worker pay, that include high attrition rates as temp workers finish their assignments, calculating hourly rates, holiday and sick pay allowances, processing auto enrolment pension and ensuring all relevant employment documentation is processed correctly, it’s clear that managing agency worker payroll accurately is a very time-consuming and challenging task.

In addition, an increasing variety of contract types in the sector, as well as the high level of temporary and foreign workers being employed in recruitment, payroll can quickly become overwhelming. Payroll outsourcing removes all of these complexities and is a solution that works seamlessly with your business.

Legal challenges

Moreover, a key benefit of outsourcing recruitment agency payroll is that it can greatly help with continuous and assured compliance. Hive360 can help provide PAYE payroll outsourcing for all types of agencies (including those Governed by the GLAA), ensuring full compliance with all tax and employment legislation and new emerging regulations such as IR35.

Reducing costs

Whilst businesses in a wide range of sectors can Save Money Through Payroll Outsourcing, reducing costs is imperative for recruitment agencies in particular, where there is increasing internal pressure on operational costs and continuing client pressure to reduce margins.

 

What are the benefits of Payroll Outsourcing with Hive360?

Whether you’re a recruitment agency or operating in another sector entirely, there are plenty of reasons to entrust Hive360 with your payroll management such as:

  • Reduced internal administration and operational support
  • Expert & fully compliant payroll management
  • Easily accessible digital payslips in a secure mobile portal
  • Simple and smooth Implementation
  • Benefits for HR Departments
  • An Employee App with inclusive benefits and discounts (provided at no extra cost)
  • Cost reduction and a positive impact on profitability
  • Greater candidate attraction and retention

So, for more information, see our Recruitment Agency Payroll Solutions Here, or feel free to Get in Touch!