The UK temporary and contract worker market is currently the strongest it has ever been, with around 20% of the workforce met by fexible resources1. However, the market is also getting tougher for employment agencies and intermediaries. While demand is at record levels, talent is in short supply and competition is intense.
At the same time, legislative changes and a tightening of HMRC focus on employment status compliance are increasing the volume of PAYE, National Insurance payments and reporting. All of this is placing pressure on margins, and heightening the need for agencies to differentiate the services they offer to employers and contractors.
Innovative, focussed, businesses can turn these market and regulatory challenges to their advantage. Those that don’t risk declining revenues and squeezed margins. Optimisation of payment processing and reporting should be a priority for employment businesses that want to minimise the burden of compliance, compete on client service and excel at candidate care.
The payments industry is also undergoing a revolution driven by a vibrant Fintech sector and changes in regulation. A new breed of payment providers is now delivering fexible, API-based payment processing tools and services that can help employment businesses achieve payment optimisation.
This paper explores these challenges and potential solutions in more detail, outlining how you can potentially use payments services to compete as well as comply.