How to tackle the culture of tardy payments in the recruitment sector ?

Are late payments making your recruitment business inch closer to bankruptcy? The culture of late payments (specifically in the UK) has undermined the integrity of the recruitment sector; and the same culture has been responsible for letting several mid- and small-sized recruitment companies fall by the wayside.
For that reason, many companies are seriously thinking before they invest in UK’s recruitment sector. Many entrepreneurs and recruiters lack the confidence that’s required while setting up their own recruitment businesses. The trend of late payments has doused the flame of life of many SMEs. If you, too, are a recruiter or a budding entrepreneur who’s anxious about maintaining a healthy cash flow, you’re not the only one.

The research carried out by BACs points that:

Close to three-fourth of small businesses wait for over a month (after the agreed timeframe) for receiving payments.

One out of five directors takes pay cuts to cover deficits.

On average, tardy payments cost SMEs close to a whopping sum of £677 every month.
So, now, we’d see the steps that can be taken (or are taken) to grapple with the issue of tardy payments in the recruitment sector.

Maintain a proper cash flow

Practically speaking, if your recruitment business doesn’t have a healthy cash flow, it’ll soon get disrupted. Furthermore, late payments for companies will:

• Escalate costs
• Prevent investments
• Inhibit trade

So you, as a recruitment business owner, will have to encourage ethical practices that safeguard the stability of your business. As an ethical business practice, you’ll have your company sign a bond with your associates that’ll clearly set the final date for receiving or clearing payments and other dues.

What the government is doing?

The government, too, is implementing fresh codes that’ll encourage fairness of the payment process. On 26 March 2015, the Prompt Payment Code was introduced that encourages business owners to commit to shorter invoice periods. (For example, by 2016, public sector contractors will pay invoices within a time period of 30 days.)

For knowing more of such insightful tips, contact RSU Services Ltd. The company has helped many to set up their own recruitment companies from scratch. Because of its commitment to bring excellence to the recruitment sector, RSU Services Ltd. complaints are kept to a minimum.

It is for this reason alone that RSU Services careers and employment section has grown by leaps and bounds as well. And which is why, many budding recruiters and enterprising entrepreneurs wish to associate themselves with RSU Services Ltd.