Running a recruitment agency takes everything you’ve got.
Between managing clients, finding great candidates, and making successful placements, your time is already stretched thin.
So, it’s understandable why many agency owners try to save money by keeping payroll in-house, especially early on. It seems simple enough… until it isn’t.
The truth is, DIY payroll might look like a cost-saving move on the surface, but beneath that simplicity are hidden expenses that can cost you time, money and growth.
What You See vs. What You Don’t
When most people think of payroll, they picture straightforward tasks: calculating wages and processing payments.
But for recruitment agencies, especially those working with temporary or contract staff, the reality is far more complex.
The Time You’re Losing:
- Chasing and Entering Timesheets
Manually collecting, following up on, and inputting timesheets for a rotating workforce eats up valuable hours you could spend growing your business. - Complicated Calculations
Temporary staff often means variable hours, multiple pay rates, holiday pay, overtime and deductions. Getting it all right takes time, and doing it manually increases the risk of mistakes. - Dealing with Payroll Issues
Errors lead to questions. That means your team (or you!) end up fielding phone calls, explaining discrepancies, and fixing issues, pulling you away from more strategic work. - Keeping Up with Legislation
Payroll rules change frequently. Holiday pay, minimum wage, pensions, tax codes. Staying compliant requires constant learning. One slip could lead to penalties.
The Costs You Didn’t Expect:
- Fines from HMRC
Manual errors in tax submissions or incorrect calculations can result in penalties, and these can hit small and start-up agencies hard. - Missed Tax Breaks
If you’re not a payroll expert, you might miss out on allowable deductions or tax efficiencies that could save your agency money. - Software & Subscriptions
Doing it yourself still requires tools including payroll software, accounting platforms, training. Those monthly costs add up quickly. - Lost Opportunity
Every hour spent processing payroll is an hour not spent winning clients, placing candidates, or growing your team. That opportunity cost is real, and it compounds over time. - Damaged Relationships
Payroll mistakes affect your reputation. Contractors who don’t get paid correctly might think twice before working with you again, and so might your clients.
Choose to Outsource to New Millennia
For over 20 years we’ve supported recruitment agencies, both start-ups and established SMEs, with back-office solutions designed to take the weight of payroll off your shoulders.
Here’s how we help:
- Timesheet Automation
No more chasing timesheets. Our online portal makes submission and processing fast and painless. - Payroll Accuracy and Compliance
Our expert team handles the complex stuff – accurately calculating pay, managing deductions and staying on top of HMRC regulations so you don’t have to. - We Handle Payroll Queries
If your contractors have questions, we’re their first point of contact, saving you from the distraction. - Built-In Compliance
We stay up to date with the latest legislation, so you’re always covered. - All-in-One Support
Payroll is just one piece. We also take care of invoicing, credit control and recruitment funding, helping you maintain cash flow and focus on growing your agency.
Don’t DIY It, Let Us Handle It!
DIY payroll may feel like you’re saving money, but the hidden costs can quietly eat into your profits and your time.
Let New Millennia handle the complexity while you focus on scaling your recruitment agency with confidence.
Get in touch today to learn how we can take payroll (and more) off your plate.
