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Your competitors are already outsourcing their payroll

your competitors are already outsourcing their payroll

Your competitors are already outsourcing their payroll

With the recruitment and resourcing sector being as competitive as it is, it’s no wonder that so many agencies outsource their payroll function.  Whether it is to umbrella companies, local payroll bureau or even to take advantage of the costs savings available from overseas providers, it is an accepted way to substantially reduce overhead costs, free-up cash to pay outstanding expenses or to reinvest to nurture growth.

We’ve already touched upon outsourcing and how it can be a game changer for recruitment companies in previous posts. However, today we will delve deeper and focus on the benefits of payroll outsourcing. Recruitment agency payrolls aren’t straightforward; from PAYE to umbrellas, from sub-contractors to master vendor arrangements – they all need to be accounted for.

The government’s focus on contractors with their moves to attempt to align their tax affairs with those of employed workers has increased the complexity and compliance requirements which must be taken care of by the recruitment sector.  The most recent budget has introduced yet another element for those agencies supplying contractors into the public sector and there must be many agencies not currently outsourcing their payroll, that have put it on the agenda for their next meeting.

So if it is something you are not already doing, let’s look at a few reasons why outsourcing could be right for you:

Payroll expertise

As a recruitment agency why should you be focusing your energies in areas which are not your core business?  Yes, accurate payroll is essential, but your specialism is recruitment so why would you waste your time with back office functions that don’t create any additional revenue?   Doesn’t it make sense to let payroll experts with knowledge of AWR, IR35, RTI, auto enrolment, student loan repayments etc take care of that area?  

Saving money

To run an entire payroll department in-house is a costly procedure.  If you are a small agency, then it is understandable that you may find it convenient to do your payroll in-house but you will be incurring costs not only for the personnel but also the payroll software you need and the time it takes to keep up-to-date with payroll processing requirements, legislation and so on.  For larger organisations the personnel requirements will be large; outsourcing payroll to an expert supplier not only means savings in personnel, you save on many associated costs too.


Choosing to outsource your payroll enables you to relax, as long as you make sure you choose the right supplier.  You need to look for companies with extremely high accuracy levels and rapid turnaround times; those with experience of your type of work and which can provide testimonials or referees for you to talk to will be the most likely ones to fit your needs.  It may take a little time for the transition and for them to bed in with your processes; and you should soon find them as dependable as your n-house team was.

At QX Recruitment Services we pride ourselves on providing our clients with an improved way of working which directly affects their bottom line.  We are able to provide everything from a straightforward pay & bill service right through to a full finance and accounts team, reporting directly to you.  To know more about our payroll services or for a confidential and no cost discussion call us on +44 845 838 2462 or email us:

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