How can recruiters prepare?
With the UK facing its biggest fiscal tightening since the Second World War, and with the economic recovery in an early and fragile stage, we now look at the potential impact of the Coalition Government's budget upon the recruitment industry.
Although the UK officially came out of recession in the fourth quarter of 2009, recovery has been slow to gather momentum in 2010. Growth in the economy is very fragile at present; therefore recruitment businesses should understand the current risks involved and be able to prepare for uncertain times ahead. We believe that the Government cut backs will limit the scope for growth in the recruitment sector and make the industry more competitive. End users will take advantage of this situation to squeeze margins. At Oriel we are optimistic that the adaptability and entrepreneurialism of the recruitment industry will enable the sector to take advantage of the opportunities that will arise during this period of change.
As we are currently at the start of the economic cycle this will be a positive time for businesses that are looking to set up or expand into new sectors, but planned cuts in government spending will mean they should be cautious in sectors that are government funded. The cuts will create opportunities for the private sector to fill the gaps, encouraging private sector investment. According to figures announced on 11th August, the number of people unemployed reduced by 49,000 to 2.46 million in Q2 2010. However, as a result of cuts in public sector spending we anticipate that the recovery of the jobs market will stall through the remaining part of 2010.
Oriel has identified a number of risks and challenges recruitment businesses may face over the coming twelve months. Recruitment businesses that currently operate within the public sector should prepare for serious reductions in placements as a result of the government cuts as fewer temporary workers may be required. Teaching agencies, for example, may face a reduced need for temporary placements in schools as they make do when teachers are absent.
However, on the other hand we are seeing signs in the market that companies in some sectors overreacted last year to the economic climate and removed too many staff from their operations. Now that the market is starting to turn around, many companies such as Banks are starting to recruit new staff in order to cope with current workloads.
Once the public sector has reduced staff they may become more dependent on the temporary market in the long term to fill positions without the commitment of permanent workers. At Oriel we believe that the recruitment industry has taken the hit in terms of reduced activity over the past 18 months and the volume increases we have seen in the past three months should be sustained.
The growth of the economic recovery will be good for businesses at all stages of their life cycle, but within the overall growth some sectors will be worse affected than others. Faced with this uncertainty recruiters should consider outsourcing for all of their back office functions. This converts the essential back office functions into variable costs, thus positioning them to deal with growth or a down turn if the "double dip" occurs. Many outsourcing companies also offer funding facilities to alleviate financial pressures. For a new start, agency outsourcing is a solution that can give them the freedom to set up and develop the business without the worry of having to implement and manage systems. If businesses choose to outsource they are less sensitive to volume changes, because the outsourcing company will take the strain of change and keep systems and procedures up to date with industry legislation.
Good credit insurance is essential for recruiters in most sectors. In our experience insurers are now writing more cover, and in view of the uncertainty of the economic recovery it would be a brave recruiter that extended significant amounts of credit to an uninsured client. If a business deals with an uninsured debtor, they should ensure that they increase their margin to compensate for the risk. Outsourcing agencies can arrange credit insurance for businesses on their behalf.
In order to thrive, businesses must look at ways of improving productivity and at the same time reduce costs. Many business services and processes can take up precious time and resources, and successful businesses are increasingly outsourcing these functions. Outsourcing such activities can give you immediate access to more flexible, experienced and cost effective capabilities. Moreover, outsourcing should be seen as a strategic management option rather than just a cost cutting operation as it can support businesses in achieving their objectives through operational excellence.
Oriel, a market leading provider of outsourced business services and finance, gives their clients more time, money and energy to focus on what they do best - and that is getting on with growing their own business.
Tuesday 31 August 2010
Oriel Contractors are Compliant
Accountax Consulting has recognised Oriel Contractors to be a compliant contractor provider company in the UK.
This is a fantastic achievement given the complexities of the Managed Service Company (MSC) legislation. Oriel Contractors is part of the Cheltenham based Oriel Group which provides services to the recruitment industry and this year celebrates its ten year anniversary.
Accountax Consulting are the market leaders in MSC legislation. Their team of highly qualified legal and tax specialists offer expert advice to their clients on contractor, PAYE and IR35 compliance. This expertise enables Accountax to also have a good track record for helping clients defend cases brought against them by HMRC.
Over recent months there has been a growing concern about the MSC legislation in the contractor market, as agencies can become liable if one of their suppliers breaches the tax legislation. This concern led a group of leading agencies to commission Accountax to review a selection of CIS and Umbrella companies. This would allow the agencies to develop preferred supplier lists safe in the knowledge that the suppliers were operating compliantly. The agencies chose Accountax to do this work as they are the market leaders in this field and are totally independent of any contractor supplier or employment agency.
Oriel Contractors were invited, along with a number of other leading providers, to undertake the compliance review. This review has now been completed and Oriel has been given complete clearance as an Umbrella Company and a CIS contractor. This is great news for Oriel Contractors and their clients as it will give additional piece of mind and will assist Oriel to achieve preferred supplier status for other agencies.
Jim Goddard, Divisional Manager of Oriel Contractors comments "The Accountax review further underwrites Oriel Contractors credentials as experts in this field. This will enable us to compete for preferred supplier status with agencies with an advantage over many of our competitors".
This is a fantastic achievement given the complexities of the Managed Service Company (MSC) legislation. Oriel Contractors is part of the Cheltenham based Oriel Group which provides services to the recruitment industry and this year celebrates its ten year anniversary.
Accountax Consulting are the market leaders in MSC legislation. Their team of highly qualified legal and tax specialists offer expert advice to their clients on contractor, PAYE and IR35 compliance. This expertise enables Accountax to also have a good track record for helping clients defend cases brought against them by HMRC.
Over recent months there has been a growing concern about the MSC legislation in the contractor market, as agencies can become liable if one of their suppliers breaches the tax legislation. This concern led a group of leading agencies to commission Accountax to review a selection of CIS and Umbrella companies. This would allow the agencies to develop preferred supplier lists safe in the knowledge that the suppliers were operating compliantly. The agencies chose Accountax to do this work as they are the market leaders in this field and are totally independent of any contractor supplier or employment agency.
Oriel Contractors were invited, along with a number of other leading providers, to undertake the compliance review. This review has now been completed and Oriel has been given complete clearance as an Umbrella Company and a CIS contractor. This is great news for Oriel Contractors and their clients as it will give additional piece of mind and will assist Oriel to achieve preferred supplier status for other agencies.
Jim Goddard, Divisional Manager of Oriel Contractors comments "The Accountax review further underwrites Oriel Contractors credentials as experts in this field. This will enable us to compete for preferred supplier status with agencies with an advantage over many of our competitors".
Celebrating 10yrs of Success
Oriel, the Cheltenham-based specialists in finance and business services for the recruitment sector and SME's, is celebrating its ten year anniversary and at the same time has been recognised as one of the Hot 100 businesses in the UK. Having ridden the ride of the recession and come out of it in a positive situation Oriel are now focussing on strengthening its position within the recruitment, collections and back office industry.
The Real Business Hot 100 listing - which has been running for over ten years, now tracks the fastest growing firms in the UK by sales over the past four years. In this survey Oriel has been ranked the 32nd fastest growing company in the UK in terms of sales throughput, with a growth rate of 79% per annum over the period from 2006 to 2009.
Oriel were inadvertently omitted from the recent publication of Gloucestershire's Top 100 companies but, we would like to acknowledge their achievement in the Hot 100 survey and to celebrate the success of this growing business in our region. Oriel are a major employer in Gloucestershire and their success will only bring good news to the local community as they expand and take on new staff.
Oriel commenced trading in 2000 and therefore celebrates their tenth anniversary this year. Their product range includes bookkeeping, payroll and are one of the largest providers of back office support services for the recruitment industry in the country. They are also a leading debt collection agency in the UK.
As part of their growth Oriel continue to recruit staff and have recently made three significant new appointments to their sales department to support the growing need for their services. Jane Kimpton has been appointed as Business Development Executive for the contractor division of Oriel. Jane's main responsibilities will be to generate new business leads for the contractor division targeting recruitment agencies and contractor workers direct promoting CIS and umbrella services. Boosting sales resources in Oriel Support, Adam Jones has joined as Business Development Executive. Adam has joined Oriel from Venture Finance where he developed his knowledge in the factoring and invoice discounting industry before returning to his roots of the recruitment industry. Finally Joel Celestine has been appointed as Sales & Telemarketing advisor for the collections dvision within the group.
Brian Pursey, CEO at Oriel adds; "Being ranked 32nd in the Real Business Hot 100 survey means a great deal to all of us at Oriel as we have received recognition for all of the hard work and commitment we have put in over the past ten years. 2010 is a significant year for Oriel as we look to mark our ten year anniversary. As we celebrate the past ten years of success we now must focus on the future and invest in our staff and systems to ensure that Oriel will be still going strong in ten years time and can adapt to the changing market that we operate within".
Oriel will be celebrating the significant 10 year milestone and their achievements with a prestigious party in December to thank all of their staff for their hard work and dedication of the past decade. Without them Oriel would not be what it is today.
The Real Business Hot 100 listing - which has been running for over ten years, now tracks the fastest growing firms in the UK by sales over the past four years. In this survey Oriel has been ranked the 32nd fastest growing company in the UK in terms of sales throughput, with a growth rate of 79% per annum over the period from 2006 to 2009.
Oriel were inadvertently omitted from the recent publication of Gloucestershire's Top 100 companies but, we would like to acknowledge their achievement in the Hot 100 survey and to celebrate the success of this growing business in our region. Oriel are a major employer in Gloucestershire and their success will only bring good news to the local community as they expand and take on new staff.
Oriel commenced trading in 2000 and therefore celebrates their tenth anniversary this year. Their product range includes bookkeeping, payroll and are one of the largest providers of back office support services for the recruitment industry in the country. They are also a leading debt collection agency in the UK.
As part of their growth Oriel continue to recruit staff and have recently made three significant new appointments to their sales department to support the growing need for their services. Jane Kimpton has been appointed as Business Development Executive for the contractor division of Oriel. Jane's main responsibilities will be to generate new business leads for the contractor division targeting recruitment agencies and contractor workers direct promoting CIS and umbrella services. Boosting sales resources in Oriel Support, Adam Jones has joined as Business Development Executive. Adam has joined Oriel from Venture Finance where he developed his knowledge in the factoring and invoice discounting industry before returning to his roots of the recruitment industry. Finally Joel Celestine has been appointed as Sales & Telemarketing advisor for the collections dvision within the group.
Brian Pursey, CEO at Oriel adds; "Being ranked 32nd in the Real Business Hot 100 survey means a great deal to all of us at Oriel as we have received recognition for all of the hard work and commitment we have put in over the past ten years. 2010 is a significant year for Oriel as we look to mark our ten year anniversary. As we celebrate the past ten years of success we now must focus on the future and invest in our staff and systems to ensure that Oriel will be still going strong in ten years time and can adapt to the changing market that we operate within".
Oriel will be celebrating the significant 10 year milestone and their achievements with a prestigious party in December to thank all of their staff for their hard work and dedication of the past decade. Without them Oriel would not be what it is today.
Subscribe to:
Posts (Atom)
