Why Outsourcing Payroll Boosts ProfitsNovember 25, 2020
Categorised in: Employee Benefits, News, Payroll, Recruitment
Recruitment businesses that have moved to outsourcing temporary workers’ PAYE payroll with Hive360 are reporting savings of £100 or more per worker in the first year.
Outsourcing PAYE payroll to an innovative and specialist provider such as Hive360 delivers an instant reduction in payroll and back-office overheads. It’s a solution that can easily add 5% or more to a company’s bottom line through significant cost savings on employment administration, benefits supply chain, and internal processes, which adds up to a typical £100 saving per worker in the first year alone according to recruitment clients engaging with us.
Jeremy Cornwall, of Bell Cornwall explains in a recent article for The Business Desk “The HIVE360 solution has reduced our above-the-line payroll processing costs by 50 percent, with similar savings on below-the-line costs, such as a reduction in the costs of dealing with payroll queries from temporary workers, and, most significantly, the reduced administration costs of running the Auto Enrolment Pension Scheme.”
The demand for a better outsourced PAYE payroll solution for temporary recruitment businesses is ever-growing, and we believe this is driven by the increasing and unprecedented pressure for recruiters to balance cost efficiencies via savings on operational costs with the need for strong compliance. Time, resource, and expenditure are always challenging for recruitment professionals, now heightened by the additional operational challenges presented by the COVID-19 pandemic. But the pressure on Compliance means the choice of outsourced partner is a critical one to get right.
The burden of constantly having to keep instep with the raft of complex and evolving legislation that governs payroll, its data and operation, and the associated time and diligence needed, is a very heavy one for recruitment businesses. So, it's clear that the industry urgently needs a robust, compliant and enhanced outsourced solution that is focused on commercial gains as well as a better experience for temporary workers.
As a commercial partner to the recruitment industry, HIVE360s approach to PAYE payroll outsourcing is a fully compliant ‘360-degree’ one. It’s a unique approach that takes in the commercial as well as the candidate needs of a business. It’s a future-proof alternative to the traditional umbrella company solution for PAYE payroll management. We’re adding value to recruitment businesses and giving them the tools to look after their candidates better.
Our 360-degree approach starts with streamlining payroll administration and managing pension auto-enrolment responsibilities, is complimented by access to free HR legal support and is underpinned by full HMRC and GLAA compliance throughout. And then we complete the solution by building into our offering as standard an enhanced package of wellbeing support, benefits and a unique mobile communications platform to provide a valued and supportive experience for the workforce.
There's cost-savings and support for recruitment businesses at one end, and enhanced benefits and wellbeing support for workers at the other.
Since partnering with Hive360, Jeremy Cornwall said, “Offering the HIVE360 platform to our internal staff has been great; we are a small business and as such, our tangible ‘benefits package’ was quite limited. But the addition of the HIVE360 Engage app and its benefits features, has resulted in our team feeling more valued, plus they have access to personal, real returns from the Apps’ discount vouchers and services. As an employer, it is good to have the mental health and wellbeing support and GP services available to our team, especially during the current pandemic.”
By adopting our fully compliant and future proof alternative to the traditional umbrella company solution for temp PAYE payroll management our clients experience benefits on their bottom line that typically result in significant annual values. A recruitment agency with 400 PAYE temps for example could achieve a £40,000 annual increase to profitability in the first year of outsourcing payroll to HIVE360.