Rob Crossland ventured, as long ago as January that many firms supplying services to contractors will start to find trading conditions difficult, and consequently, not all will survive.  In this article Parasol’s finance and operations director Anita Whittle, addresses the implications for contractors if their umbrella company ceases trading, and the importance of responding quickly in choosing a new provider that is customer focused.

We know that according to figures published by HMRC, there are currently 1 million agency workers in the UK, although many umbrella companies would put this figure much higher.  Whatever the exact number, a significant percentage of the current UK labour market is employed in this way, so any changes to this workforce impact directly on the wider UK economy.

Elements beyond the control of contractors such as the legislative environment have threatened the flexibility and appeal of the contracting world.  Equally, issues such as employee expenses and IR35 have caused great ambiguity and uncertainty.  As contracting boomed over recent years, around one hundred PAYE umbrella companies formed, but the quality and range of services greatly differed.   On forecasting the consolidation of the market Rob Crossland said that over the next 12 months current umbrella trading numbers could drop as low as 20, but this should still leave contractors with plenty of choice to find a reliable provider to suit their needs.

A suitable umbrella company should offer a combination of good customer service, reliability and compliance.  As far as possible contractors should also seek to find out whether the provider has a solid financial structure.

It is important for contractors to look to independent organisations for endorsement or recommendations of umbrella companies. Contractors should be looking out as to whether an umbrella is an affiliate member of The Association of Professional Staffing Companies (APSCo), has been recommended by the Professional Contractors Group, or is accredited by Professional Passport. But as much as contractors are encouraged to investigate the credibility of an umbrella company, they are also inclined to rate the quality of service offered.  Even more so now, given the changing landscape of the contracting world.

Contractors will naturally be concerned with how quickly they will be paid once their agency has sent their money to the umbrella company.  Some umbrella companies only run one payroll a month.  This approach means that if the umbrella goes into administration the contractors will be at higher risk of not being remunerated, or only receiving a certain percentage of their earnings. In contrast, Parasol safeguards against this by running four payrolls per day and ensuring that over 95 per cent of the money that comes into the company is paid to the contractor on the same day.

Contractors should now expect same day payment from their umbrella company, wherever possible.  Contractors should demand a service that shows them exactly how much they are going to get paid, enables them to monitor the stage of their invoicing, as well as giving them control over other additional transactions. Online systems, such as My Parasol, not only give the contractor more day to day control over their money, but the short payment turnaround reduces longer-term exposure to financial risk.

In an increasingly uncertain world contractors should limit their exposure to financial risks by choosing the right umbrella company that meets their requirements for efficiency and compliance. In the event that their umbrella company ceases trading contractors need to respond quickly to find themselves alternative provision and to ensure they chose a financially solid umbrella company that puts their needs first.

ENDS

Editor’s Note:
Professional Business Services Provider - Parasol is the UK’s leading PAYE umbrella company providing payroll services for contractors in IT and engineering, either directly or through agencies.  Created by contractors, for contractors Parasol take care of timesheets, invoicing and tax whilst providing a host of added benefits to ensure contractors’ careers are HMRC compliant, legal and hassle-free, with no risk of unexpected tax bills.

Parasol managing director, Rob Crossland says: “The acquisition of Quay Accounting is a key strategic move for Parasol. Parasol’s growth has been remarkable and our employment services solution is presently looking after 14 000 contractors. Adding strategic complementary services, with the aim of building a portfolio of companies, will allow us to look after every aspect of a contractor’s career, from beginning to end.

Our strategy has been developed in response to growing demand from contractors who no longer want to operate under an umbrella, qualify to use limited company status, and want the same level of care, continuity of service and an easy to use online portal to simplify their migration from one employment solution to the next”.

Quay Managing Partner, Duncan Strike, says: “Quay is an ambitious company with the same ethos, compliant nature and high quality customer care that made Parasol the leading Employment Services Provider in the UK. Joining with Parasol, who share our values, is a major step forward for us and will ensure our clients continue to benefit from Quay’s personal service.”

Quay Accounting currently employs 50 staff with a current turnover of £1.5m. With offices in Poole, Manchester and Aberdeen the company has been providing tailored accountancy solutions for 15 years.

The consignment of the rapidly selling ‘Daydream Believer’ will be shipped to the rainforest of mountainous PNG in the New Year. And the locals in Gene’s home settlements near the city of Goroka will have the chance to read the life story of one of the most celebrated sportsmen in the South Pacific Islands.

Rob Crossland, managing director of Warrington based Parasol and vice chairman of Hull KR, said: “Stanley’s had a wonderful career and he has an amazing story to tell. To travel all the way round the world and succeed as he has is an incredible achievement. Like a lot of fans, I’ve admired the dynamism and heart that Stanley has always showed on the pitch. And learning about his life off the pitch puts it all in a fabulous context.”

Gene first came to the UK in 1995 with the PNG World Cup squad, and the following year he took the momentous decision to sign for Hull KR, and to play rugby on the other side of the world from his home. He settled so successfully, enjoying spells at Huddersfield and Bradford before returning to his beloved Hull KR at the beginning of the 2007 Super League season.

But every year he has travelled back to PNG to spend the close season with his friends and family. A hugely popular figure in Super League, he has legendary status in his homeland. And excitement reached fever pitch when he met up with the country’s World Cup Squad in October.

And his all action performances, particularly against England, have won him more fans world wide.

The retail price of a book at £11.99 equates to a week’s wage for many of the subsistence workers in PNG. Gene said: “This is a fantastic gesture by Rob. I don’t think he really knows just how much this will mean to all the people back home. It means a hell of a lot to me. I’m so proud of my country but life’s pretty hard over there. It’ll be just unbelievable for some people in my village to own a copy of Daydream Believer. It’s something I never thought would happen.

”It was great to see everyone back home before the World Cup, and meeting up with the team was tremendous. But it was a pretty emotional time for me.”

The book, which tracks Gene’s life on both sides of the world, has been billed as ‘unlike any other sporting autobiography’ and his candid, heart warming and often funny account of how he adapted is getting impressive reviews. Following the award of The Independent’s ‘Book of the Week’ shortly after its release, sales have now reached almost 4,000 as demand has tested speed of supply.

Crossland said: “When you read about Stan’s family and the strength they all have in coping with life in such a tough land, it’s quite inspiring. I know it can be a dangerous place to be, which explains a lot about how Stanley easily copes with situations that would frighten most people to death.

“We’re absolutely thrilled to be able to help in this way. Stanley’s friends and family should have the same opportunity to read his book as we do.”

Ambitious Super League club Hull Kingston Rovers has signed up Warrington based business Parasol as its main club sponsor for the 2009 season.

Parasol, the UK’s leading provider of business services to freelancers, contractors and recruitment agencies, has been a sponsor at Craven Park for the last four years. And Rob Crossland, managing director of Parasol and a lifelong Rovers fan, joined the board at the beginning of the 2007 season.

Now Crossland has seized the opportunity to become the club’s main sponsor, as Lloyds TSB nationally had signalled its intention to shift the focus of its sponsorship budget to the 2012 Olympics. This has opened the door for Parasol to increase its own profile in the East Riding and on Humberside.

This news follows the recent announcement that Rovers has agreed a four year deal with KooGa, the specialist rugby kit suppliers. And the new KooGa branded home shirts, which will be on sale before Christmas will proudly bear the Parasol name.     

Paul Blanchard, Hull KR’s chief executive said:” There is an awful lot of synergy in this deal. Everyone at the club is working extremely hard to maintain the sensible, sustainable growth that we’ve seen over the past couple of years. We are now an established Super League force on the pitch, and I am determined that off the pitch our facilities, image and commercial opportunities reflect that.

“Parasol is a dynamic business with a clear strategy and this is exactly the type of company that we want to be associated with.

Crossland said: “I can’t deny that at least in a small way this is a labour of love for me. But on a commercial basis, Hull KR now has a brand that I am more than happy for Parasol to be strongly linked with.

“This partnership with Hull KR is a very important part of our growth plans. Everyone knows it’s a challenging time in business at the moment. But in a market like this you can’t afford to stand still. You have to think through every investment case carefully, but sensible investments in a tough market will always set you fair for a growth market.”

 And Crossland is well placed to make that judgement, having successfully led the management buyout of Parasol in 2006, and subsequently overseen an annual growth rate of 133.6 percent. It was this commercial strength that prompted Neil Hudgell, the Rovers chairman, to strenuously persuade Crossland to join the board, as the club returned to the top league. 

Crossland said: “Now is a very good time to make this move. This year at Parasol we’ve concentrated on sales and marketing and we’ve tried to broaden our appeal to new sectors and areas. We are again increasing our regional sales teams and working on new products so our sponsorship budget is being applied with that very much in mind.”

Crossland is hopeful that the club’s planned ground development and rapidly growing support, with over 5,200 season tickets already sold, combined with increased Sky coverage will all have a big impact on the profile of his business on this side of the Pennines.

And Parasol is no stranger to attracting corporate recognition, this year featuring in the Newsco Insider Growth 100 as the 4^th fastest growing company in the North West. The business now deals with 2,500 recruitment agencies looking after over 15,000 contractors nationwide.

On Friday at 16:01 an intrepid band of Parasol climbers took to Ben Nevis in the first part of this very challenging task. Aiming to raise £10,000 in support of Childline and in conjunction with ATSCo, the Parasol team completed the climbs of Ben Nevis, Scafell and Snowdon.

In probably the worse weather conditions for the time of year in a long time, (it did not stop raining and with high winds) the team completed the task in just over 24 hours. Injuries, weather and fatigue could not put these hardy souls off and they all returned back safe and sound. The team was extremely well supported by a dedicated Support Team who also made the challenge so much more manageable.

Everyone at Parasol has been involved in the fund raising effort and to have reached the £10,000 milestone is an excellent achievement for such a worthy cause.

If you would still like to sponsor the Parasol team, you can donate on-line at
http://www.justgiving.com/theparasolchallenge

No donation is too small and we are all very proud of the teams achievements.

The Parasol I-Bank is considered by Parasol to be a huge stepping stone and cultural investment in ensuring they remain at the forefront of their industry. 

Managing Director, Rob Crossland says “With a huge number of employees spread across the UK we consider our online presence to be of the utmost importance to both them and us.  We constantly strive to make it user friendly and personal as well as practical to use as opposed to a distant non-community based information portal”.

“In the current process of redevelopment, it’s very important for us to ensure all our contractors have a chance to input their thoughts, issues, options and ideas to help make it one of the best flexible working sites out there”.

“Running the I-bank means we can do just that, it gives us the ears and eyes we need and the chance to harness input from across the board therefore proving an invaluable tool in ensuring we’re getting things just right”.

Many aspects of the current flexible working landscape were discussed from various perspectives by a host of notable attendees, including author and academic Patricia Leighton, ATSCO CEO Ann Swain, Orange & Gold CEO Jonathan Shellard and the CBI’s Lizzi Holman.

One of the key messages to come out of the meeting was the often difficult relationship between agencies and contractors, and how it can sometimes be characterised by misconceptions and lack of mutual understanding on either side.  The debate continued with issues including the extent and necessity of advice agencies offer contractors on their working and tax arrangements.

Parasol’s Head of Commercial Strategy, Marc Morris said:  “It’s increasingly important that all who have a vested interest in the well being of contracting, pull together to find solutions, discuss current issues and create a rhythm across the industry.   At Parasol we do our best to listen to contractors and understand how things work for them.   We spend time in discussion with the PCG, our recruitment agency partners and other bodies, we lobby Government and try to ensure we remain at the forefront of the industry.  A series of thought-leadership events that gives everybody the chance to sit down and feedback has been something we’ve wanted to do for a while and I’m incredibly pleased at the input and outcome of the first event”.

John Brazier, Managing Director of PCG added:   “Our intention was to begin the process of exploring "Best Practice" around developing the right agendas, protecting the industry, understanding and supporting Contractors motivations, and of course conforming with legislation. It is clear that in the time available we barely "scratched the surface" of much of this so it would be good to build on this initial gathering to further explore many of the issues that were raised and debated on the day.  I look forward to working with all those involved to provide clarity, consensus and where appropriate, calls to action.”

With uncertainty still surrounding the HMRC’s audit standards, the Passport has been designed to offer the contractor, recruitment agency and end client greater levels of security.  The Passport reviews the structure, processes, auditing practices, insurances and marketing claims of umbrellas.  One of its main aims is to specifically protect agencies and companies against pitfalls in the “Transfer of Debt” legislation, thus avoiding any possible agency issues with contractor’s unpaid tax liabilities.   Attaining the Passport means Parasol is operating to the highest possible standards of legal compliance and adopting best practice guidelines that would be expected by HMRC, all hugely important factors when choosing a service provider.  

Commenting on the attainment, managing director Rob Crossland stated “Parasol has been offering employment and payroll services to freelance contractors for 8 years and has always steadfastly refused to offer managed service company solutions or composite schemes, as we believed them to be laden with risk for both the agency and the worker”.
“Our long term approach has not only paved the way for many close relationships with blue-chip recruitment agencies, but also ensured that attaining the Professional Passport was straightforward and swiftly concluded”.

Crawford Temple from Professional Passport praised Parasol, commenting specifically on its clear business strategy and a commitment to a transparent trading approach. “Parasol have always focussed on their Professional Employment Services and as being seen as the "experts" in this area.  Our audit has confirmed that, in our opinion, they are fully compliant.  They have robust systems and procedures in place and have a clear vision for the future."

Confirmed as the only umbrella that the APRC are to link up with, Parasol is in no doubt that the newly formed relationship will produce considerable benefits in terms of business consultancy, assistance and best practice.  

Commenting on behalf of the APRC, Chief Executive Peter Clayton commented: “The APRC is committed to bringing “best of breed” service providers to the attention of our members-when discussing umbrella companies, Parasol certainly fits the bill."

Parasol managing Director Rob Crossland added: “Parasol is very enthusiastic about the new association with APRC as they clearly share our commitment to integrity and best practice in all that they do”

The rapidly changing face of the labour market means it’s hugely important to underline best practice and compliance, not least to ensure longevity and reputation – being associated with the APRC does nothing but help us champion those facts across the industry”.

With upwards of 10 000 individual and corporate members, the APRC exists to promote the highest standards of professionalism, ethics and integrity in recruitment. 

Best Companies Accreditation recognises organisational excellence in the area of workplace engagement.  Parasol scooped its position after demonstrating how it values its employees and by highlighting its approach to career development of staff members.
- More –

Adele Ventre-Downey, head of HR at Parasol, said: “Everybody at Parasol has worked hard to retain our Star status and we’re extremely proud that all our commitment and input has once again been recognised”. 

“Developing a vibrant, fun and hard working team is central to Parasol’s vision of growth and diversification as the freelance recruitment industry moves in to a rapidly expanding future.”

“Most visitors at Parasol comment on the friendly yet professional culture we have and this could not be retained without engaging everyone at the company”.

Parasol now employs 94 people at its Centre Park offices, and looks after the employment needs of many thousands of contractors working throughout the UK.  In 2007, the company won the ATSCo Service Provider of the Year award, and managing director, Rob Crossland won Ernst & Young’s Entrepreneur of the Year in the North.  Parasol have also recently been successful in renewing their Investors In People (IIP) Award.

An overriding majority of customers recognised Parasol as a fast and responsive service provider, providing knowledge and speedy resolutions to queries; an invaluable testament to our customer service team.

Access to the customer Portal and online systems also received a huge “thumbs up” with 93% saying that it was either a “good” or “excellent” service feature.  Reassuring us that simplicity for online timesheets and expense entry continues to be a key priority for contractors and a continued success factor for Parasol.

While success factors and recognition of our quality brand were generally given very positive feedback, it is your suggestions for improvement and real needs that drives our innovation and delivers the Company’s growth. In the Know will keep you updated of all future developments to our online Portal, added service benefits and new product launches as the year progresses. 
In addition to completing the survey, over 700 Flexible Employees agreed to participate in future on-line focus groups; a chance to discuss Parasol, the industry plus new initiatives around product, services and pricing.

We were delighted with your genuine interest and commitment to the future of Parasol. Thank you to all of you who took part! 

With its secure client area you can intouch with the latest offers, access your account and stay up to date with the latest industry news.     

Your Portal

 A revamped Flexible Employee Portal completes the new website. Your Portal is your personal space to control where you will enter your timesheets and expenses and keep track of your payments.

Parasol’s recently launched PayTracker is proven to answer 84% of your queries on-line and allows you to track your payments throughout every step of the process.

Live News Feeds

Your daily one-stop-shop for up to the minute news, that affects you and your contracting career.

Competitor Comparison

Compare our services and benefits against the other players in the market.

Rob’s Blog

Weekly update from our M D, Rob Crossland provides thoughts and an often comical view on the latest industry news. With an opportunity to post your comments back to Rob! 

“We’re all really pleased with the results – it’s got great functionality, sophisticated online communications and, of course, the best blog on the net - probably!?” – Rob Crossland.

Why not save us in your favorites?

After consulting with all of their head office staff, Parasol’s management team spent significant time developing and perfecting their “Blueprint for Success” which clarifies the critical performance areas of the business and the specific contribution required from all employees.

Commenting on the award, Managing Director Rob Crossland said: “Receiving any award is fantastic, but something that recognises our contribution to service and professionalism is particularly special and since the award recognises the collective contribution of all our employees, it is doubly satisfying.”

At a gala event attended by over 600 people from the Technology Staffing Sector, Parasol was recognised for its consistently clear messages during a year when evolving legislation posed some serious challenges to many competitors in the sector. With its position reinforced by the legislation, Parasol were able to deliver outstanding service levels right throughout the year, service levels that were massively enhanced thanks to the strategic direction offered by their Blueprint.

Parasol has plans to introduce a further range of agency services during 2008. Crossland continued: “We are currently looking to raise the bar even higher by adding further specific initiatives to better manage administrative operations and the pay rolling of contractors. Our intention is to really communicate on how operational efficiency (and risk mitigation) through effective partnerships can be a huge contributor to Agency profitability”

Ends

Press enquiries to: Susan Tonge, Smith & Smith PR, tel: 0161 236 5560 / mobile 07985 991 130; e-mail: susan@smithandsmithpr.co.uk.

Hi-res jpeg images are available from Smith & Smith PR.