Successful business relationships are based on trust. When a recruitment agency engages an umbrella company they are trusting them with the livelihoods and tax affairs of their clients as well. With so much at stake, how can recruitment agencies be sure that their umbrella service is reputable and will act in their best interests?
While many umbrella companies offer ethical, quality, compliant services it is also the case that a small number have damaged the reputation of the sector. The fly by night operator who disappears one day and is back with a different name the next, can offer incorrect advice and create considerable financial problems for employment agencies and their candidates.
For more than a decade Exchequer Solutions has provided business services throughout the UK and Europe, offering guidance and practical support to agencies providing services to construction, IT and technical services, transport, engineering and education sectors. Here are six key considerations to take into account when appointing an umbrella company.
1. EXPERIENCE
Experience and reputation count. As part of the procurement process it is always good practice to carry out background checks on potential suppliers and to be cautious when considering small or newly established umbrella services companies. Being confident that suppliers can deliver on your behalf is essential – check they have a robust trading history and make enquiries about their banking arrangements. Do they have adequate cash reserves? This is an important indicator of the company’s financial stability.
A visit to the company’s offices can help to determine whether they are a sound and well-established organisation. At Exchequer Solutions we are always happy for clients to visit our headquarters in Chester, to talk to our staff about their experience and ask questions about our track record.
2. PERSONAL AND RESPONSIVE SERVICES
Time is critical when recruitment agencies and their clients need to check payments or regulations. Client responsive services such as dedicated account managers, out of hours services, call backs, text messages or online communication can show whether or not an umbrella services company is in a position to advise whenever support and guidance are needed.
3. GUARANTEED PAYMENT DATES
Agencies need to trust that correct payments will be made on the due date to all of their candidates and reputable umbrella companies will provide evidence and reassurance. At Exchequer Solutions we make payments into the nominated bank account each Friday and send a text message each Thursday to staff to inform them of the amount they will be paid.
4. CUSTOMER FOCUS
Ask a potential umbrella service the questions that matter: are they reliable, accurate and responsive? What are their KPIs? What are their priorities? Each year Exchequer Solutions carries out a customer service survey to gauge satisfaction among clients and publishes the results on our website at www.exchequersolutions.co.uk/why-us/survey-results/
5. BENEFITS AND EXPENSES
Recruitment agencies will know that some of the most important benefits for staff are entitlement to sick pay, holiday pay and maternity leave. Well established companies, such as Exchequer Solutions, are flexible in their services and will offer the statutory rights as standard.
It is important to know that there are also robust processes and procedures in place when it comes to claiming of expenses and that they must be adhered to for payments to be processed.
6. TRANSPARENT MARGINS
Ethical business services companies are open when discussing their margin but it is always advisable to check contracts carefully for hidden costs and details of any upfront and exit costs.
While the right umbrella company is a trusted, reliable and responsive business partner in streamlining business affairs and ensuring compliance, the less reputable companies can cause considerable harm. However by carrying out essential background checks as part of the procurement process recruitment agencies can minimise the risks and reap the many benefits that working with an experienced and ethical umbrella company can provide.
Click here for more details about umbrella services offered by Exchequer Solutions
