6 Reasons Recruitment Agencies Should Outsource Payroll

Payroll can be a complex and time-consuming function for any recruitment agency, placing a heavy administrative burden. In addition to maintaining complex records, staffing agencies need to make sure that their large pool of candidates is paid on time.

As the temporary market continues to grow, especially in the UK, it’s important for recruitment agencies to stay on top of their payroll processes, otherwise they are at risk of losing candidates and employers. This is where a specialist can help.

Outsourcing the pay and bill function to a specialist can enable recruitment agencies to streamline their services, focus on core business functions, and adapt to a dynamic marketplace.

Here are six benefits you can gain from outsourcing the pay and bill function to a specialist.

1) Reduced costs and time: Routine administrative tasks can be extremely time-consuming in nature. Pay and bill processing in-house can take up a lot of time and resources, which can in turn hamper your core business. Add to this a lot of manual processing or inefficient processes and you’ll be spending more time rectifying errors than focusing on boosting business growth.

A recruitment payroll specialist can enable your business to free up resources, time, and money to focus on other processes than can add value to your business. Furthermore, a specialist will have the manpower and technology required to process massive volumes, which is not the case with in-house staff.

2) No more mistakes: Manual processing can lead to errors, and these errors can be costly and time-consuming to fix. If you partner with a pay and bill specialist with a track record for accurate timesheet processing, you’ll no longer be faced with numerous human errors. At QX, our payroll team has an accuracy rate of 99.8% when it comes to payroll processing.

3) 100% compliance: With constant changes to legislation and HMRC laws, it can be challenging to stay on top of every change. A pay and bill specialist invests significant resources in training their staff, ensuring that they stay up-to-date with new legislations. This, in turn, makes sure that your processes are in full compliance with UK laws. Furthermore, they will also communicate any legislative changes that may affect payroll with the business and its contractors.

4) Dedicated service: When you outsource your recruitment payroll to a specialist, you will have a dedicated payroll and accounting team who will not only take care of your payroll processes but also deal with any queries that candidates or contractors may have.

5) Reduced administrative burden: Unsurprisingly, there’s a lot of administrative work associated with payroll processing. This includes calculations for pay-as-you-earn (PAYE), holiday pay, and sick pay – and entering all the data into the software system. Resolving candidate queries can also consume a lot of time. Outsourcing this activity frees up a significant amount of time for in-house staff, thereby leaving more room to focus on core business responsibilities.

6) Centralisation and Scalability: Agencies that grow through mergers and acquisitions often end up with siloed accounting departments and non-standardised processes. With a Shared Service Centre managing the pay & bill for all the brands in one place, it is a lot easier to implement digital transformation initiatives, optimise processes and build plug-and-play models that can easily absorb the payroll and accounting for newly acquired brands. Needless to say, this also helps build and sustain scalable pay & bill teams.

Need help with recruitment payroll?

QX Finance & Accounting Services is one of the leading high-volume pay & bill providers for the recruitment industry in the UK and EU. We process over 1.5M timesheets annually with an average accuracy rate of 99.8%. We’ve enabled leading recruitment agencies to streamline their payroll processes and even save up to 50% on operations costs.

Get in touch with us to transform your pay and bill processes.

Originally published Jul 08, 2021 11:07:20, updated Dec 08 2021

Topics: Recruitment Process Outsourcing