72% of human resources and procurement professionals that sign-up staff for their company could be breaking the law, risking heavy fines or even imprisonment, according to new independent research commissioned by Professional Staff Solutions, the UK’s leading provider of Employment Process Outsourcing solutions.
The level of understanding and compliance with tax law and the changing face of employment legislation amongst respondents is poor, misunderstood or simply ignored. 42% of those interviewed admit to leaving contractors to sort out their own affairs.
Of those companies, just 6% will only accept people with the relevant registration number. Whereas over one in four managers are unsure how they handle this critical aspect of hiring contractors and another 10% are happy to get the contractor to write them a letter confirming they will pay their own tax. This is particularly worrying given that over 3 million of the working population in the UK is employed as self-employed.
Tony Borrill, Managing Director of PSS says, “Many organisations rely on third party suppliers to look after their recruitment issues, working on the presumption that the supplier will conform to all the legal requirements. This does not abdicate responsibility from the hiring organisation, so it is vitally important to have the right checks and processes in place at the point of entry.”
PSS has defined a new approach to skilled labour supply and management, Employment Process Outsourcing (EPO). Tried and tested in client environments and evolved from a 25 year pedigree in the provision of employment solutions, Professional Staff Solutions’ EPO approach protects organisations by dramatically reducing exposure to financial and legal risks, whilst ensuring employment legislation and tax law compliance.
Notes to Editors
A total of 200 interviews were collected with HR and procurement heads in companies with at least 1200 employees. 100 interviews from each respondent group were completed. The resulting sample includes a variety of industry sectors. Interviews were conducted by telephone by Dynamic Markets Limited between 2nd and 18th February 2004. Before and during the interviews, respondents were not aware that PSS had commissioned the research. Respondents were offered a summary of the findings of the research in an exchange for their contribution to it.
About Professional Staff Solutions
Professional Staff Solutions (PSS) is the Employment Process Outsourcing business of the Professional Staff Group, a specialist staffing solutions provider with revenues in excess of £89 million. Its core business is the supply and management of large volumes of highly skilled technical staff into such industries as technology, telecommunications, automotive, aerospace, healthcare and the sciences. With over 20 years’ experience, its clients include British Telecom, EADS, Marconi, the MOD and Vodafone.
EPO is the means by which large organisations outsource every aspect of the supply and management of skilled labour (contract and permanent) finding the right person, for the right job at the right time. The way it works makes it possible for organisations to save significant amounts of money while guaranteeing a better service for both hiring managers and candidates. Sophisticated management tools and metrics are used to ensure that skills supply and demand are properly aligned to the needs and culture of the business.
For further information, please contact:
Simon Larter/Dawn Flynn
Motive Public Relations
Tel: +44 118 988 0773
Professional Staff Solutions
Tel: 0845 6589840
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