Why are Compliant Recruitment Processes Important?

With the amount of legislation and paperwork required of all companies, not just those in the recruitment sector, business leaders and senior managers can be forgiven for an aversion to admin. However, although often laborious and sometimes challenging for those without a legal background, stringent attention to legal compliance is one of the best ways to ensure business continuity, happy clients and candidates and ultimately, company success.

Generate’s experienced payroll and contractor management specialists outline the importance of legal compliance in recruitment, and the five ways that staffing agencies can ensure compliance throughout the hiring process and beyond.

Why are Compliant Recruitment Processes Important?

Legally sound practices are the best possible solution to support recruiters, clients and candidates alike:

How Can Recruitment Agencies Ensure Compliant Processes?

1. Awareness and Regular Review

As always, understanding the problem is the first step to creating the solution. Recruitment agencies will need to consider the role of everyone in the business, not just the Legal and Finance teams. Conduct a full review of your current position to find out which areas need to improve, including:

Start with a full review to address any and all gaps. Put together a cross-departmental team with responsibilities for regularly researching, reviewing and reporting on relevant legal changes, which can then be regularly discussed with senior management and timely improvements implemented.

2. Make Compliance a Habit

After conducting your initial review, start keeping official records of every regular review meeting and the actions implemented from each one. Accurate record-keeping is vital in understanding why and how problems arise, and identifying and addressing the root cause.

Set up training programmes for all employees, tailored to the job roles of each, to ensure all departments at all levels understand the importance of compliance and their relevant responsibilities.  Take individuals through which information needs to be entered into which system and how records should be stored and maintained, to provide the most accurate picture of a problem or situation whenever needed, and follow up with refresher training regularly to dramatically reduce the risk of human error.

Whilst recruiters are naturally people-oriented individuals rather than fans of admin, once they understand the reasons behind compliance processes and have seen these practices championed by business leaders and team managers, staffing teams can become vital supporters of compliant recruitment processes.

3. Communication

Continuous communication inside and outside the business will proactively identify any lapses in compliance before they happen, and will enable you to rectify problems as quickly as possible. Internal communication between Sales and Back Office is essential to ensure candidates are properly screened and submitted, and can be achieved through regular meetings, process improvements and dedicating specific Finance and Legal Officers to individual Sales teams and consultants.

Most recruiters are excellent at keeping in touch with clients and serving their needs, but candidates are often an afterthought once they’ve been hired and have finished onboarding. Providing emergency contact details, conducting exit interviews and sending regular surveys where contractors can anonymously report mistreatment will help recruiters see a full 360 view of client workplaces, ensuring that the agency can act if non-compliant or unethical practices exist in their supply chain.

4. Work with a Compliant Contractor Management Supplier

The right supplier can prevent fines, brand damage and heavy admin burdens, in favour of efficient, reliable and legally sound recruitment practices. Experienced payroll specialists will understand the details of tax, national insurance, take-home pay, pensions, sickness and holiday pay, and will be the best port of call when navigating unprecedented situations such as the furlough pay introduced by the Covid-19 pandemic. Generate’s 100% compliant payroll solutions provide piece of mind for staffing agency owners and your consultants, leaving you to focus on recruiting.

Find a Compliant Contractor Management Provider

Generate have supported thousands of recruitment agencies and contractors across the globe with our 60 active in-country payment solutions. Get in touch to find out how we could help you.

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