It’s widely accepted that one of the hardest parts of running a recruitment business is managing cash flow. Whether it’s ensuring invoices are settled, or paying contractors on time, cash is the key to ensure a business can not only operate but keep clients and candidates confident in the service.
Payroll is a huge concern for recruiters operating in the contractor market and, with contractors usually paid before invoices are settled, it can feel as though cash-in will never catch up with cash-out. Add uncertainty surrounding Brexit into the mix, with the current lack of confidence in the UK economy seriously affecting the bottom lines of businesses, and it becomes clear just how vital it is to nail payroll.
One of the most important decisions to make with regards to this area of business is whether to outsource payroll or operate it in-house. There are pros and cons to both, with the most cost-effective option varying from business to business. What part does Brexit play in this decision? It’s inevitable that any financial impact caused by the UK leaving the EU will certainly impact external payroll companies, with organisations cutting costs by demanding reduced fees or taking the operation in-house.
Nervousness around taking control of payroll usually boils down to the time-consuming manual processes involved. With cash flow in a post-Brexit Britain more important than ever before, is it financially viable to spend hours on administration, calculations and investing time in keeping abreast with the latest changes in legislation? Of course not. In the face of industry-wide talent shortages and a question mark still hanging over freedom of movement within the EU, it’s now more important than ever for recruiters to invest their time in cementing meaningful relationships with clients, who are likely to lean on them heavily to ensure they stand out from the crowd and secure the best talent on the market. So, in order to make in-house payroll processes financially viable, they ideally need to be automated.
While 2018 brings apprehension surrounding the effects of Brexit on recruitment businesses, there is a development that’s worth celebrating; the evolution and growing accessibility of technology platforms. Ten years ago, an online system that integrates into a recruitment database would have been out of the question for small to medium sized recruiters. However, we live in a time where technology is levelling the playing field and there are more tools than ever that can fully automate demanding processes, such as payroll, at a price that’s no longer prohibitive.
We don’t have a complete understanding of the full effects of Brexit on recruitment businesses, but now is certainly the time to focus on agility and optimising businesses processes. FastTrack360 cloud software moves candidates through each stage of business from job placement through time, bill and pay, streamlining your business to save you time and ensure a healthy cash flow.
Find out what we can bring to your recruitment business by signing up for a demo today.