Recruiters can save up to 65% of payroll processing costs with open banking technology
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The employment agency sector, despite being in the middle of a boom period, is currently being squeezed by an increasingly competitive landscape and a surge in regulatory burden.
18,000 private recruitment agencies in the UK are currently in the process of adapting to legislative changes that are increasing their volumes of PAYE, NI payments and reporting, whilst also trying to remain competitive in an increasingly crowded marketplace.
So what is the solution?
A new whitepaper from Modulr Finance discusses how savvy employment agencies can utilise the changing landscape of the wider payments ecosystem to their benefit, to gain tangible competitive advantage over the market.
“Payment processing is the lifeblood of a temporary or contract worker agency or umbrella business. If you think about it, it is a major part of what your company does: invoicing and receiving payments from employers, paying VAT, PAYE and NI and, of course, paying the contractor or worker”, the whitepaper explains, highlighting that quality of service, margin maximisation and cash flow management can all be enhanced through the implementation of a superior payments processing system.
This is where developments in the wider payments landscape become a factor. Developments in fintech, coupled with changing regulation – most notably the implementation of PSD2 in January 2018, will afford agencies easy access to instant payments and innovative payments solutions through APIs. Adopting this technology will give an employment agency competitive advantage in multiple areas, all of which are discussed in the whitepaper.