It would seem that Parasol is not only the UK’s favourite PAYE umbrella company, but this Warrington-based business also has the fastest-growing profits of any equity-backed company in the Northwest.  Ranked number one in the North West region on the Sunday Times Deloitte Buyout Track 100, Parasol also stormed into 14^th place in the nationwide ranking on this prestigious league table.

Parasol’s annual profits grew 87.26 per cent over two years, and it latest profit stands at just short of £3.6 million. The company was considered to have made an excellent contribution to the local economy despite of the downturn.

Parasol Group chief executive, Rob Crossland, commented: “This is great news for Parasol.  The rebranding of our core business and the acquisition have been very well received, and we’ve very much kept our focus on service – 98 per cent of the money that comes into Parasol is paid out the very same day.

It’s especially pleasing to be ranked top in the North West, particularly as we’ve been busy delivering tailored projects to help mitigate risks for agencies and clients in the region.

Looking to the future, our industry as a whole is facing huge challenges in the shape of the Agency Workers Directive (AWD), but we’re planning to build on our strengths and focus on promoting the professionalism of our sector through the Service Providers Association (SPA) – we’re very much here for the long term”.

As you’ve probably heard, it’s a new law the Government is bringing in to help protect so-called ‘vulnerable’ temps and contractors. Basically any temporary worker employed longer than 12 weeks will automatically be given the same employment rights as permanent staff - equal pay, holiday pay, sick leave and the like. And as umbrella companies like Parasol have been specifically mentioned for inclusion, it will directly affect our employees. End clients may very well be put off employing contractors for periods of longer than three months due to all the extra admin, paperwork and perceived hassle involved.

Of course, we’re all for protecting the vulnerable, but as our MD, Rob Crossland, points out, “The Government has missed a massive point here - vulnerable agency workers, who fully deserve protection, are very much in the minority. There is a massive amount of workers, many of them very highly skilled, who choose agency work because it suits their lifestyle.” He also states, “The really ironic thing for umbrella contractors is that much of what AWD tries to do (equal rights with permanent employees) is already provided by businesses like Parasol.” 

So, why has the AWD been postponed?

The reason behind Lord Peter Mandleson’s announcement to delay the AWD until October 2011 is to help the country emerge out of the recession. For Parasol, and the rest of the umbrella industry, this decision has been met with a massive sigh of relief as it gives us a bit of security about the very near future.

What does this mean?

It means our contractors don’t need to panic because Parasol is on the case! Rob’s worries about the AWD were that the Government were trying to rush it through before the next election in April without properly thinking through its impact on our industry. Now that we’ve got some breathing space, it means contractors can carry on operating through an umbrella for at least two more years.

What’s the future of the industry?

This new law means that there will be a positive reshaping of the contracting industry in the run up to 2011. And, you can be confident that Rob and his team here at Parasol are already planning how we will revise our service model to deliver the very best solutions for our hard-working, loyal contractors. Rob says, “Contractors with contracts lasting less than the 12-week qualifying period can continue to use an umbrella solution.  And there is sufficient time for alternative trading options outside of the AWD to make it onto the market before October 2011.”

What are contractors’ long-term options?

Setting up a Limited company may be the long-term solution to the AWD for some contractors, but there’s no immediate rush to go down that route just yet if you weren’t planning to.For those of our employees who don’t want that particular hassle, then rest assured that we’ll come up with a legal and compliant solution well before the October 2011 deadline to allow you to do just that. Watch this space!  

What if I want to go Ltd now?

If this is an option that already appeals to you then, yes, this is something worth looking into. And the great thing is Parasol’s sister company ClearSky Accounting is fully set up to help you. A no-nonsense accounting service, with over twelve years experience in all things Ltd, they will be more than happy to talk things through with you.

We’ll continue lobbying …

Finally, as the debate continues, we would just like to reassure you that Rob and the team at Parasol will continue to lobby Government to make sure that when the law does come in, it’s fair. Rob is disappointed that despite the clear evidence provided by many contractor organisations in the first consultation, the distinctions between professional contractor and vulnerable agency worker haven’t been acknowledged.” I still urge everyone to lobby Government,’ says Rob. “We need to push the point around understanding the labour market in the 21^st century. As without continued focus everyone will be classed as ‘vulnerable’…”

North West firm Parasol – the UK’s favourite umbrella company and one of the country’s fastest growing businesses, was recently recognised in two different categories in the global creative awards - the Daveys.

With more than 4,000 entries from across the world, the Davey Awards honour the finest creative work from the best small firms, agencies and companies globally. Parasol’s website won two silver awards in the financial and professional services categories.

Susie Lee-Kilgariff, marketing manager, Parasol said:  "We’re excited to have been recognised by such an accredited institution, alongside many other innovative campaigns. We wanted to create a website that would set Parasol apart from the competition and add an element of fun and imagination into what can be a dry and process-driven industry. We think we’ve achieved that and are really pleased it’s been acknowledged.”

Parasol, the UK’s favourite PAYE umbrella company and one of the country’s fastest growing businesses, today announced itself as a founder member of the Service Providers Association (SPA), a new self-regulating body designed to encourage best practice across the service providers sector. The SPA will issue guidelines, which will cover businesses that provide employment, payroll, tax, accountancy, administrative support and advice to the professional freelance workforce.

The accolade follows a year of award successes for Warrington-based Parasol.  In June, managing director Rob Crossland was named Warrington Business Person of the year for his commitment to supporting small businesses while forging strong links with larger, national organisations.  Crossland was also shortlisted for the Ernst & Young Entrepreneur of the Year Award and the Institute of Directors North West Director of the Year. Plus Parasol is a finalist for APSCO’s (Association of Professional Staffing Companies) Service Provider of the Year Award and was shortlisted for the Manchester Evening News Business of the Year.

Rob Crossland said: “We’ve just been getting on and working hard so the amount of recognition has even taken us by surprise!  However, the fact we’ve climbed 65 places in this year’s Top Track reflects our resilience through this recession.  Our staff have had their heads down and we’ve invested in our systems to enhance customer service in spite of the challenging climate and we’re delighted to see it’s paying off.  It’s extremely fulfilling to know that all the hard work we put in to provide the best possible service for contractors across the UK has achieved local and national recognition.”

Gordon Brown unsurprisingly appealed to the TUC this week when part of his speech included a loose promise on the Agency Workers Directive (AWD) coming into power within this government’s tenure. This was then followed by more comment from BIS, the Department for Business Innovation and Skills, (used to be BERR and was DTI before that!) that suggested a “2010 or 2011″ implementation – so perhaps a little bit contradictory to the PM’s position.

Any new contractors/freelancers may be confused by all this as in many ways it is a bit too far off when you are focused on a role and earning some money. But for those who are interested, its EU legislation that grants “temporary workers” the same “rights” as their fully employed counterparts after 12 weeks. I put the terms and values in quotes as the EU seem to think that contractors need protecting and don’t get any employment rights.  Clearly this is not the case as umbrella contractors get FULL employment rights!

Anyway, like IR35 and MSC before, AWD is starting to create some turmoil and noise. “Umbrellas are dead” and “everyone move to Ltd” is starting to be shouted. In my opinion it does the industry no good to create disquiet in a time when there is equal focus to be placed on helping people get work and start contracting. “Well you would say that Crossland” I hear you cry – maybe, but don’t forget we also have a true accountancy practice (ClearSky Accounting) and try to offer the right choice to contractors based on best advice and not solely on % return (often advertised before an individual’s position is known!).

Surely if the “industry” (umbrella services, special accountants etc) is to have a better image with the authorities then at least some sense of the bigger picture should be thought of? Maybe I am being naive, and self interest will always ultimately be the driver for many. The industry needs to wake up and smarten its act up. We and a few others have tried to do it through SPA with an emphasis on doing the right thing but that’s not the easy option or the cheap option.

AWD, like previous legislative policies before it, will come in. It is not the end of any business models, it will simply create new models, some good and some bad. Here at Parasol we are very happy with our plans and confident that a new generation of prosperity for umbrella contractors will be created and protected.

So if you read any “the end is nigh” articles that seem to suggest changing how you operate, just take a second to think why that might be.

To read more of Rob’s blog posts, visit www.contractingmatters.co.uk

Ends

Rob won the prestigious award after the judges were impressed by the excellent leadership skills and business achievements he has shown since establishing Parasol nine years ago. His commitment to supporting small businesses and ability to establish strong relationships with much larger, national companies also ensured Rob was the best candidate for the award.  

Rob says: “This is an achievement I’m really proud of and I’d like to thank all the team at Parasol for making the company what it is today. Our contractors are being looked after by a dynamic, fast growing company that is investing in its people and I’m delighted to lead such a great team.”

The annual awards, now in their tenth year, celebrate local business talent in the Warrington area and took place on Friday 10 July at the Park Royal hotel in Stretton, with snooker legend Dennis Taylor as key note speaker.                                                                              

ENDS

Parasol’s staff has been widely consulted about the new brand, even down to naming Lance, and his christening party forms part of the launch celebrations.  The branding will now extend this sense of community to Parasol’s companies including Quay Accounting, which joined the family last year. 

The brand now better reflects the company’s pioneering personality and commitment to innovation and is a radical departure from traditional umbrella branding.

Susie Lee-Kilgariff, head of marketing for Parasol, said:  “We wanted a creative brand to live online, stand out from the competition and add an element of fun and imagination into what can be a dry and process-driven industry.

“The brand essence – ‘we work harder for your living’ was central to the design brief to ensure this re-brand is not just about a fabulous logo.  This has been a process that strengthens and communicates our attributes and expresses values that are more relevant for contractors today.”

Recognising the importance of social media the company was the first umbrella to have a Twitter account and managing director, Rob Crossland, writes Contracting Matters (www.contractingmatters.co.uk), one of few blogs to give regular advice and updates about issues affecting contractors.  The new branding lends itself to even greater use of social media and in the coming months the company will be introducing webinars and videos to even further improve and expand its overall offering to contractors. (This will include a Lance Freer movie.)

The new brand has been developed jointly between Parasol and Studio North, the Manchester-based independent brand design consultancy and award-winning web design agency Liquid Light, and will now be rolled out across press advertisements, corporate literature, online banner advertisements and www.parasolgroup.co.uk .  The recent web upgrade has added a more creative element to Parasol’s online presence and has introduced a more simple navigation, as well as useful tools such as tax calculators.

Nick Wright, creative director at Studio North said: “As a business, Parasol commands a great deal of respect so the new creative communications needed to reflect that from the design of the core logo to the press ads and brochures. It was great to work so closely with the whole Parasol team as they gave us the licence to explore new ground but we were careful to not loose sight of the organisation's brand values and character which are so pivotal to its ongoing success. We also steered away from any industry clichés and we feel the result really does herald a new era in their marketing activities.”

This announcement by Warrington-based Parasol follows a year of exciting new developments. At the end of 2008, Parasol acquired specialist accountancy firm Quay Accounting as part of an overall plan to provide services that meet all a contractor’s career requirements.  In January this year, Parasol invested £300,000 to upgrade its online system to dramatically reduce the time and effort required by contractors in inputting information and more easily claim expenses.  In addition, the company has increased its workforce by 20 per cent, taking the total employee number over 100 for the first time in the company’s nine year history.  

Managing director, Rob Crossland, says: “This past financial year we have made significant investments that have put us in a position to support contractors in difficult times, as well as extend the Parasol brand to a new customer base.

“We are performing in line with predicted results and our growth strategy enables us to provide a first rate service to contractors.”

Last month Liverpool-based Filetravel officially went into administration, after Safe Solutions was acquired by another umbrella company the week before.  This has raised concerns that too few contractors are protected by umbrella companies that are not only fully compliant, but also offer good customer service, reliability, and a solid financial structure to ensure their own financial security.

Parasol has been quick to point out that there a number of highly credible companies to choose from but contractors should seek endorsement of these credentials through independent organisations.  Equally, they should choose an umbrella company that 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.

Rob Crossland, managing director of Parasol says: “Given the current state of the economic climate contractors need to be bold and ask their umbrella company outright how quickly they will be paid.  This is crucial, given that some umbrella companies only run one payroll a month therefore leaving the contractor exposed if their umbrella company hits the wall.  As demonstrated by recent developments.  We run four per day so our contractors can be assured that over 95 per cent of the money we receive is paid to them on the same day.  This protects them from sustaining any losses should the company cease to exist.”   

Contractors should also expect same day payment of their employee expenses from their umbrella company, wherever possible.  Parasol believes they should demand a service that shows them exactly how much they are going to get paid and the stage of their invoicing. Online systems, such as My Parasol, demonstrate how to offer contractors day-to-day control over their money, and how short payment turnaround reduces their longer-term exposure to financial risk.

“We can offer those contractors currently caught up in this current consolidation with alternative provision and I will be providing further contractor management advice on my blog to help them through this difficult time.  Starting next week I will do a series of questions and answers to address concerns that we have been contacted about.  But it is imperative that when they set out to seek a new contractor services provider they go in with high expectations because there is a range of excellent umbrella companies that match these expectations.”

Chris joins the rapidly expanding Parasol team with more than 13 years financial management experience.  He previously worked for Synergy Health plc where, for eight years, he was responsible for a team of 12 as finance manager in their healthcare solutions division.  Prior to this he was a management accountant for Golden Wonder.

Chris has a BSc Hons in Finance and Accounting and has achieved the ACMA (Association of Chartered Management Accountants) diploma.  He will be reporting to Rob Easton, group financial controller for Parasol and will assist and support the finance team in the preparation of monthly management accounts, business modelling and commercial decision making.

Other recent appointments have been made at Parasol in marketing, payroll and sales, taking the total employee numbers over 100 for the first time in the company’s nine year history. 

Jenny Carter, Parasol’s new marketing executive, brings with her 10 years of marketing experience. In that time she has developed strategic marketing campaigns for both consumer and B2B across a range of sectors, including media.  Jenny spent two years at the Manchester Evening News as marketing executive working on key brands such as Manchesteronline, City Life Magazine and Channel M.

Jenny joins from Opal, part of the Carphone Warehouse group, where she started as marketing communications officer and progressed to new media manager.  Her main responsibilities in this newly-created role at Parasol will involve a variety of on and offline marketing campaigns including email communications, Parasol’s website, online advertising and sales support.

Jenny’s appointment has been closely followed by that of marketing assistant Lisa Meadows.  Lisa comes to Parasol from AstraZeneca, where she was marketing executive in the employee wellbeing department.  She is currently studying for her CIM Diploma in Marketing and her responsibilities at Parasol will be focussed around supporting efforts to increase numbers of new contractors with limited company status, as well as identifying new target markets.   

Both Jenny and Lisa will report to Susie Lee-Kilgarriff, Parasol’s marketing manager, who joined the company last year.

Parasol have also made other recent appointments in payroll, finance and sales, taking the total employee number over 100 for the first time in the company’s nine-year history. 

Susie said: “Marketing is central to Parasol’s strategy for growth and diversification.  Jenny and Lisa’s appointments come at a crucial time as we look to make significant investment into our client offering.  I look forward to working with them both as we look to accelerate the company’s growth.”

Matthew joins the rapidly expanding Parasol team with more than five years call centre and sales experience .  He previously worked at Wright Medical as customer service team leader where he managed a team of four.  Before this Matthew worked at HBOS for four years working up to loans and sales manager where he supervised a team of 14 advisors and briefly relocated to Scotland to help set-up a new HBOS call centre. Matthew will report to Gareth Hamner, sales enquiry manager.

As telesales account manager, Gayle will be responsible for looking after new business development and agency account management. She previously worked at Norbain, a distributor of electronic security equipment where she was internal sales engineer, and prior to this was customer manager for More Than insurance. Gayle will report to Chris Clowes, head of agency sales.

Other recent appointments have been made at Parasol in marketing, finance and payroll, taking the total employee number to over 100 for the first time in the company’s nine-year history. 

Paul Shrimpton, Parasol’s sales director, said: “Parasol is constantly looking for high calibre people to keep us at the forefront of our industry.  I am pleased that Matthew and Gayle have joined us at this crucial time and look forward to working with both of them and the rest of the sales team in accelerating Parasol’s growth.”

Sophie joins the rapidly expanding Parasol team with more than nine years experience in payroll management.  She previously worked for Marks & Spencer where she was payroll team leader for two years.  In this post she was responsible for a team of 21 administrators and helped oversee the payroll administration for Marks & Spencer’s 75,000 employees and 42,000 retirees.

Sophie has the IPP (Institute of Payroll Professionals) Diploma in Payroll Management and will be reporting to Lesley Sweetman, Parasol’s head of operations. Sophie’s remit is to run Parasol’s payroll functions on time and as accurately as possible so that the company’s increasing number of contractors receive their money quickly and efficiently. 

Other recent appointments have been made at Parasol in marketing, finance and sales, taking the total employee number to over 100 for the first time in the company’s nine-year history. 

Lesley Sweetman said: “Sophie has worked for one of the UK’s best-known brands and it’s a real coup for Parasol to have secured her knowledge and experience.  The efficient running of the payroll function is critical to Parasol’s success and I look forward to working with Sophie to improve this even further.”

Sophie said: “I am delighted to be joining such a strong company at this point of its development.  Parasol benefits from a strong market position built on customer focus, providing critical services to more than 30,000 contractors.  I am looking forward to working closely with the operations team to enhance the award winning offering to contractors.”  

This new wave of expansion comes at a time when many companies are looking at ways to reduce, not increase, headcount.  According to the Chartered Institute for Personnel Development over a quarter of a million redundancies were announced in the last quarter of 2008, in spite of the professional body saying that this should be a very last resort during the downturn. 

Parasol is increasing its marketing investment by trebling the team.  Other appointments have been made in payroll, finance and sales, taking the total employee number over 100 for the first time in the company’s nine year history. 

Rob Crossland, managing director of Parasol, said: “Developing a vibrant, fun and hard working team has been central to Parasol’s vision of growth and diversification.  Getting the right expertise isn’t always easy, but it’s critical for Parasol as we grow and venture into new markets. 

In spite of the current economic climate we continue to grow due to an increasing demand for our services.  We have been able to continue expanding, at the same time as maintaining a competitive and customer focused service for contractors across the UK. Our contractors are being looked after by a dynamic, fast growing company that is investing, investing, investing in its people and I’m delighted to have such a great team on board!”