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The five signs of a good umbrella company

Wednesday 27th June 2018

For recruitment agencies, ensuring that contractors you work with are registered with the best umbrella company is vital.

Poor recommendations will not only reflect badly on the umbrella company itself but also for your agency, therefore you must establish that an umbrella company will provide high quality customer service alongside compliant procedures, prior to making any recommendations to a contractor.

Take a look below as we explore the top five signs of a good umbrella company to help you make the ideal recommendation to your contracting candidates.

signs of a good umbrella company

Signs of a good umbrella company


Umbrella companies dedicated to providing a high-quality service will almost certainly have accreditations with governing bodies that will oversee and audit a company’s services to ensure it is running to industry standards. For umbrella companies, in particular, there are a number of industry bodies with whom they can be accredited or members of, including: PRISM, FCSA, APSCo and Professional Passport.

They provide expert advice and guidance

If a contractor registers with an umbrella company and subsequently only receives correspondences about their pay, then they clearly do not have the best interests of contractors in mind. A great umbrella company will provide regular updates on the contracting industry and relevant legislation, as well as providing expert guides, articles and information on how to get the most out of their contracting career.

A strong history in the industry

Umbrella companies that have been established within the industry for a number of years are highly likely to provide a much more comprehensive and compliant service to contractors, as opposed to those just starting out within the industry.

A full contract of employment

Contractors are ultimately the employees of an umbrella company, and therefore they are entitled to the same benefits as employees working in all industries across the UK. Subsequently, all contractors should receive a full contract of employment from the outset of their relationship with an umbrella company.

Transparency of charging structure

Your contractors should know exactly what they will be paid each week, what will be taken from said pay with regards to the umbrella company’s margin, as well as any additional payments they may need to make. Companies that are hesitant to provide a clear picture of their charging structure are more than likely not operating compliantly.

Here at Sterling Group, we have been the preferred umbrella company for recruiters across the UK, for many years. This is a testament to our endeavours to provide a high quality customer experience for contractors and agencies alike, whilst ensuring compliance with all relevant regulations, at all times. Find out more about the service we offer recruitment agencies here.

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