I have been recruiting within the Contractor payroll sector for over 10 years. During that time, there have been a number of changes within legislation and tax laws that have effected the marketplace and the solutions which payroll companies offer.
None have had a greater effect to the Agency- Payroll supplier relationship that the private sector IR35 reform that is set for April 2020.
“Private sector IR35 reform is set for April 2020, when the public sector rules will be applied to the private sector. This means private sector employers hiring contractors will be responsible for determining their IR35 status”
The key change for agencies is that they and their clients are now responsible for ensuring their Contractors are paid according to these laws. In the past, FCSA Accreditation was seen as an expensive commodity used mainly to ensure that agencies could work with public sector bodies and gain access to Blue Chip Recruitment Agencies PSL’s. This is not so anymore.
More than ever before, recruitment agencies are demanding FCSA accreditation for their suppliers and those who don’t have them are being left behind- a “Nice To Have” has become a “Must Have”. I work with numerous clients who have had their FCSA Accreditation “in the pipeline” for years but they really need to act now.
As a Recruiter I have a futher point to make; the 1st question my team get from candidates when promoting roles to our candidates is “what’s the package for the role” but the 2nd question is now without a doubt “are they FCSA Accredited?”.
Clients who don’t have their FCSA Accreditation are already losing out on the best clients but now they will lose out on the best candidates too.