Do Recruiters Have Sufficient Cashflow to Cope with Increasing Client Demand for Candidates?
The UK has long suffered from skills shortages, particularly in key sectors such as construction and manufacturing. But many believe that the UK’s divorce from the EU will compound the issue, derailing the Government’s productivity target even further. In fact, according to TotalJobs.com, half of employers say that skills shortages will be made worse by Brexit.
It’s therefore encouraging to see small and medium sized businesses taking matters into their own hands and investing in both staff training and recruitment in 2018. Bibby Financial Services’ latest SME Confidence Tracker study found that 37% of SMEs plan to invest existing staff and 28% are looking to recruit new talent between January and April 2018.
However, the desire to invest in people must be met with the financial capability.
From discussions with the recruiters we work with, it is clear that their clients are looking to plug the widening skills gap inflated by Brexit uncertainty. However, many don’t have sufficient cashflow in order to invest. Similarly, cashflow limitations are increasingly holding-back staffing businesses from fulfilling the ever growing needs of their clients.
And this is where finance, specifically tailored for the sector can help recruiters to deal with increasing client demand.
Recruitment Finance is an integrated funding and payroll service for UK recruitment and staffing agencies. It is designed for those that primarily place candidates on temporary or short term employment contracts in the UK and Europe.
It helps by providing upfront cashflow against client invoices and automating complex and time consuming back office administration, including:
Calculating net wages and salaries payable and submitting payments in respect of National Insurance, PAYE, VAT and CIS.
Preparing and dispatching pay slips to staff/candidates placed.
Maintaining statutory sick pay and statuary maternity and paternity pay records.
Completing end of year payroll returns such as P35 & P60.
Submitting timesheets online
Automating such tasks helps recruiters to free up their time, enabling them to focus on placing staff.
Data from Companies House shows that last year there were over 26,000 SME recruitment businesses registered in the UK, reflecting the highly competitive nature of the sector.
For recruiters to get ahead of the curve, they need to make sure they can continuously service the needs of their clients, and this requires steady cashflow and efficient processes.
If the UK is to tackle its ever growing skills shortage, it requires specialist recruiters that can continuously source and place candidates in required roles. To do this it is vital that such businesses have sufficient cashflow and support services in place, enabling them to consistently deliver for their clients.