Today the modern world of work sees the rise of the contingent worker.

Work is changing, it’s time to catch up.

Organisations are moving away from the traditional approach of salaried employees to a mix of staff, freelancers and contract workers, which has opened up opportunities for flexible workers like never before. The labour and skills of these contract workers are now very much in demand.

But how temporary workers are managed and paid is still very paper-based and time-consuming for everyone involved.

Workers are choosing flexibility

Today’s dynamic, flexible workforce is revolutionising the world of work. Where previously a temporary job was often seen as a stepping stone to a permanent position, as shown in the results of our recent contractor survey, it is now very much becoming a lifestyle choice.

A double-edged sword

Yet this new approach to work at times is proving a double-edged sword for all those involved in the supply chain as they sprint to catch up and adapt.

Outdated Approaches

As the numbers of contingent workers dramatically increases across the UK, Government and HM Revenue and Customs (HMRC) are also quickly waking up to this new world of work, Clamping down on tax-loopholes and outdated approaches that were previously exploited by many, to engage and pay temporary workers.


Every week the media are reporting on new cases of HMRC investigating end-hirers, recruiters and contractors for tax avoidance. Many individual workers have been faced with tax bills for backdated unpaid taxes, in cases where they have unknowingly used a non-compliant tax-based solution to receive their pay.


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Compliance vs Non- Compliance

Unions, Government and Media have all put pressure on end-hirers and recruiters to ensure all aspects of the hiring and pay chain is transparent and compliant. This has become more complex as new legislation impacts the use of traditional payroll methods such as PSCs (Personal Limited Companies) and Umbrella Payroll solutions.

PEO offers recruiters the chance to attract talent and importantly improve candidate loyalty to increase and secure talent pools. So critical today, in an environment where contractors and candidates are in short supply.

We need another way. PEO

PEO (Professional Employment Organisation) is different. It’s new to the UK but has been hugely popular in the US for many years.

No fee to the worker

Another important point to note is that, unlike other contractor pay options, there is no fee to the worker, for being engaged or paid via a PEO.

Transparent way to get paid

Importantly for contractors and hirers it’s safe, straightforward and reliable. Unlike other tax-based methods, it’s a completely transparent way to get paid.

This provides a future-proof solution which removes any concern of immediate or future legislative changes.

Extensive Benefits

Let’s start with some background, PEO was initially formed in the United States to assist companies to deliver healthcare related benefits to their workforce. Due to the buying scale of the PEOs, these employee benefits packages soon quickly expanded.

People PEO

People PEO is exactly the same we provide a great benefits package to contingent workers such as Continuing Professional Development (CPD), retailer discount packages, our unique Anytime Wages facility which means you can opt to be paid at the end of each shift.

You can download our contractor’s guide here for some helpful tips and a guide to the People payroll offer. We’re always up for a chat if you’d like more advice, just give us a call.