In contrast here is a comment from a contractor supported by People Group:
“I wasn’t expecting to be furloughed – I was expecting to be abandoned. The agency has exceeded my expectations.“
Notice that the contractor talks about ‘My Agency’. If they’re treated well by their payroll provider, the agency gets the kudos. And the loyalty. This should concern recruiters if their payroll providers have let contractors down. They will see it as their agency letting them down. Typically the agency recommends the payroll provider, so it’s on you.
Our research backs this up:
Contractor sentiment towards their agency increased by 21pp from 55% to 76% satisfaction when they were taken care of when furloughed.
There was also a marked difference in contractor satisfaction between PEO and Umbrella.
Umbrella has come in for a bit of a hammering in recent months. From a contractor’s point of view, it’s too complicated and never seems to pay what it promises. In our research, 85% of furloughed contractors were happy with PEO while only 16% of contractors on Umbrella said they were going to stick with Umbrella.
When payroll works it’s easy to ignore it. But never forget that your reputation is in your payroll provider’s hands. If the lights go off, as they have in recent months, it’ll be the recruiter’s reputation that suffers. At People Group, we paid contractors 80% of their salary from week one. We believe that payroll can help drive contractor loyalty through providing the most simple, rewarding and easy experience. We’re there for contractors and deliver for them. Because that’s how we deliver for recruiters.