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The top benefits of outsourced payroll for recruiters

Thursday 11th October 2018

For any business, payroll is a vital part of the day to day running, without a payroll department in place, a business will ultimately cease trading. For the recruitment industry in particular, without an efficient and reliable payroll function, candidates and employers will simply look somewhere else.

As a result of this, many recruiters choose to outsource payroll for their contractor candidates, and for good reason. There are countless positives to outsourcing your payroll for a recruitment agency, below we will take a look at just some of the top benefits.

Outsourced payroll

Benefits of outsourced payroll

Reduced administration

Payroll responsibilities ultimately go hand in hand with quite a vast amount of administrative time, including calculations for PAYE, holiday pay, sick pay, as well as vital eligibility to work checks. Not only does this save time, but it also ensures your business’ recruitment processes run efficiently from start to finish, leaving you free to focus on your core business responsibilities.

Reduced costs

The costs of running a payroll function in-house can add up when you take into consideration the software required, the staff and the overheads associated with employing someone (i.e. computers, desktop, stationery, holiday pay, training etc). An outsourced payroll provider will ultimately have a strong team; therefore, your agency won’t be impacted by annual leave, it will come with its own payroll software and, most importantly, it will come with the knowledge required to run your payroll function effectively.


As mentioned above, with an outsourced payroll provider you are also benefitting from their vast knowledge of payroll functions and processes. This is particularly of benefit in times of legislation change that will impact your payroll (i.e. national minimum/ living wage, right to work, etc), a great payroll provider will track these changes, keep your business and your contractors informed, and ultimately implement them.


Remaining compliant with HMRC regulations is vital to any business. For recruiters, with many contractors registered, all of whom will be on varying hourly rates, payment dates and contracts, it can be difficult to keep up with the requirements of payroll. This ultimately will lead to non-compliance for an agency, and potentially some hefty fines and investigation by HMRC. An outsourced payroll provider will have the capacity to keep up with the fast pace of a recruiter’s payroll, as well as the knowledge of HMRC regulations, so that your business remains compliant at all times.

Our expert team at Sterling have a vast amount of experience in working alongside recruiters and contractors from across the UK, we are continually praised by clients for our efficient and accurate payroll solution.

Contact our team today to find out more about our outsourced contractor payroll.

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