Five safe and sustainable ways to turbo boost your agency’s growth and profitability.
Recruitment agencies have few levers to drive growth. You either reduce overheads or place more people, more profitably. But at People Group, we believe there are other powerful growth drivers hidden just below the surface. Payroll’s an ideal example. It’s an admin hassle for all recruitment agencies. And yet, the right payroll solution, optimised for your business, could drive efficiencies and growth. Here are the top five benefits you never knew were hiding in payroll.
1) Increased candidate loyalty and attraction
Candidates are the lifeblood of your agency. But with increased competition and employers developing their own talent pools, it’s becoming harder and more expensive to attract and retain great candidates.
Our research shows that contingent workers value transparency and ease when it comes to pay. 84% would prefer a clear fee-free option with 64% stating that it would influence their choice of agency. That’s why we developed People Pay’s PEO solution. It offers the best candidate experience. No dodgy deductions or unrealistic rates that the worker never gets. Just clear and simple pay slips and great rewards. Our clients tell us that within a year of adding People Pay PEO to their PSL, they’ve gone from 90% of contractors being paid through umbrella, to 90% of contractors choosing PEO.
Key benefit: Spend less time and money attracting and replacing contingent workers.
2) Increase consultant profitability
Recruitment Consultants should be spending their time profitably. But our research shows they’re wasting up to four hours a week dealing with contingent worker payroll queries. This negatively affects the consultant-contractor relationship and impacts agency profitability.
PEO from People Pay isn’t an Umbrella company or a tax product. It’s simply PAYE. Contingent workers can easily see how much they’re getting paid with minimal deductions and absolute clarity. Workers aren’t asked to stomach employer deductions (ENI, Pension & App levy) that are an unwelcome feature of umbrella. This eradicates payslip queries altogether. So your Recruitment Consultants can spend their time building relationships and placing more people.
Key benefit: Consultant time optimised on profitable activity.
3) Realise overhead and cashflow benefits
Restricted cashflow and high overheads are common in the recruitment industry and can seriously hinder growth ambitions.
With People Pay’s unique HMRC recognised and reviewed Joint Employment Model, only 1% of the invoice attracts VAT. Compared to 20% with an Umbrella Solution. This positively impacts your cashflow by 19%. When it comes to overheads, People Pay takes care of all of the admin around pay, which means your workforce can be optimised to focus on revenue generating activity.
Key Benefit: Your agency is commercially optimised for growth.
4) Protect your business now and in the future
As HMRC rules change annually, a lot of payroll solutions find themselves on the wrong side of the law. Senior Management often don’t have complete visibility and problems are picked up when it’s too late. It can endanger your clients, your contingent workers and your business.
People Pay products set the standard when it comes to compliance. They are as safe today as they are future-proofed for tomorrow. Our PEO product has actually been reviewed and recognised by HMRC. This gives you reassurance and security which you pass on to your clients and contractors. Your client knows they’re not going to end up on the front pages for exploiting workers and your business is protected for future growth and business sale plans. Plus, with People Compliance as one of our other platforms it’s easy to see how we are so focussed on protecting our clients.
Key Benefit: Your agency is protected, so you can focus on growth.
5) Create a tangible competitive advantage
There are nearly 40,000 recruitment agencies in the UK. They all offer the same service differentiated by scale and specialism. Standing out in this environment is tough.
A tangible difference to your offer is rare in the recruitment world. Most agencies use out of date payroll solutions that deliver a terrible experience for contingent workers, employers and recruiters. Yet they all just put up with them. But People Pay’s payroll solutions are innovative and industry-leading. We’ve used cutting-edge tech and thinking to reinvent payroll into a simple, transparent and easy solution for everyone. Take for example our My Wallet benefits platform and our onboarding compliance software. It’s a giant leap ahead of any other payroll offer in terms of candidate experience, which offers a clear and tangible differentiator for your agency.
Key Benefit: Your agency stands out from the competition by offering the best candidate experience.