Agency owners and Directors are still putting both their businesses and themselves at extreme risk by choosing non-compliant umbrella companies to manage their contractor payroll. Despite the government's decade-long campaign to clean-up the industry, a myriad of ever-more creative payroll models are still prevalent including disguised remuneration schemes where contractors are paid via loans or lump sums, so-called 'mini-umbrella' arrangements often based in the Philippines and offshore entities still promising up to 95% take-home pay.
It really is hard to believe that these practices still prevail as sustained media exposure, legislative clampdowns and 'whistleblowing' websites have served to highlight the extreme risks to those operating and using these models. Even the threat of huge fines, bankruptcy and even imprisonment seem unable to deter a hardened group of illicit providers hellbent on ripping off all facets of the supply chain including workers, recruiters and hirers. It is little wonder that the industry is tarnished and subject to ongoing criticism from the unions, politicians and journalists alike.
Of course, the inescapable reality is that the recruitment industry is booming, contractor numbers are growing, and the traditional full-time PAYE model is rapidly eroding as flexible working becomes the norm across all sectors but most notably in construction, health, IT and industrial. The surge of the 'gig economy' further highlights an acceleration to more enlightened labour practices preferred by both workers and employers for obvious reasons. The 'slave to the machine' mentality is quite rightly dying a long, slow death as advances in technology, Ai and increased automation transform the very notions of 'work' as we know it.
Accordingly, recruiters and payroll providers have an instrumental role to play in this ongoing evolution (or revolution) as employers wrestle with the socio-economic factors of our age; ever more acute skill shortages, a very real 'brain drain' fuelled by the volatile political landscape and the ongoing challenges of an ageing population, dictate that the search and management of talent is a prerequisite to commercial growth.
With this in in, fully compliant payroll companies are perfectly positioned to assist recruitment businesses and their contractors to benefit from the working patterns outlined. Simplify have recently achieved APSCo Affiliate member status and have also passed their biannual Professional Passport audit which illustrates an unwavering commitment to compliance. Protecting the commercial interests of our clients whilst offering up to four weeks unlimited credit provides agencies with a unique opportunity to grow their businesses by choosing Simplify as their payroll provider.
With the end of the year upon us and PSLs up for review, there has never been a better moment to contact Simplify to find out more about how we can assist your agency in 2019.