B2i Focus Group

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Presentation given to B2i Focus Networking Group talking about the pros and cons of Sub-Contractors v Employees.

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B2i Focus Group

  1. 1. B2i Focus Group Mandy Fitzmaurice Change Partner HR
  2. 2. Dec 13 2010 Employ Sub-Contract
  3. 4. June 7 2010 Page The objective today..
  4. 5. June 7 2010 Good decision…
  5. 6. June 7 2010 Your customers love you, they want more but there’s only so many hours in the day and you simply can’t do it all yourself - so you call in reinforcements….
  6. 7. June 7 2010 Time to move on to the next level…
  7. 8. June 7 2010 What’s the benefits of using Sub-Contractors? <ul><li>Flexible </li></ul><ul><li>Specialist skills </li></ul><ul><li>Control costs </li></ul><ul><li>No PAYE/NICs </li></ul><ul><li>Temporary </li></ul><ul><li>Pay as you go </li></ul><ul><li>No employment rights </li></ul>
  8. 9. June 7 2010 On the other hand, there are risks: <ul><li>Can be expensive </li></ul><ul><li>No commitment </li></ul><ul><li>Reliability </li></ul><ul><li>Competence </li></ul><ul><li>Safety </li></ul><ul><li>Insurance </li></ul><ul><li>Confidentiality </li></ul><ul><li>Quality of work </li></ul><ul><li>and … </li></ul>
  9. 10. June 7 2010 You need to guard against any challenges from HMRC: <ul><li>Written Agreement </li></ul><ul><li>Own tools/equipment </li></ul><ul><li>Substitute </li></ul><ul><li>Bear £ risk </li></ul><ul><li>Fixed price work </li></ul><ul><li>Freedom to decide what, how & when to work </li></ul><ul><li>Regularly work for others </li></ul><ul><li>Correct poor work @ own cost & time </li></ul>
  10. 11. <ul><li>Flexible </li></ul><ul><li>Specialist skills </li></ul><ul><li>Control costs </li></ul><ul><li>No PAYE/NICs </li></ul><ul><li>Temporary </li></ul><ul><li>Pay as you go </li></ul><ul><li>No employment rights </li></ul><ul><li>Can be expensive </li></ul><ul><li>No commitment </li></ul><ul><li>Reliability </li></ul><ul><li>Competence </li></ul><ul><li>Safety </li></ul><ul><li>Insurance </li></ul><ul><li>Confidentiality </li></ul><ul><li>Quality of work </li></ul><ul><li>HMRC issues </li></ul>
  11. 12. June 7 2010 What about being an employer? <ul><li>Continuity </li></ul><ul><li>Control </li></ul><ul><li>Fixed cost </li></ul><ul><li>Quality </li></ul><ul><li>Reliability </li></ul><ul><li>Commitment & loyalty </li></ul><ul><li>Ownership of expertise </li></ul><ul><li>Legally protected </li></ul><ul><li>Good PR </li></ul><ul><li>Competitive advantage </li></ul>
  12. 13. June 7 2010 And the downsides? <ul><li>Employment Rights </li></ul><ul><li>Costs +11% (PAYE/NICs) </li></ul><ul><li>+ 3% Pension from 2012 </li></ul><ul><li>28 days paid holiday </li></ul><ul><li>39 weeks Maternity Pay </li></ul><ul><li>52 weeks Maternity Leave </li></ul><ul><li>Payroll administration </li></ul><ul><li>Difficult to change </li></ul><ul><li>Employing the wrong people </li></ul><ul><li>Added responsibilities </li></ul><ul><li>Pressure on cash flow </li></ul><ul><li>Legal and Safety compliance </li></ul>
  13. 14. <ul><li>Continuity </li></ul><ul><li>Control </li></ul><ul><li>Fixed cost </li></ul><ul><li>Quality </li></ul><ul><li>Reliability </li></ul><ul><li>Commitment & loyalty </li></ul><ul><li>Ownership of expertise </li></ul><ul><li>Legally protected </li></ul><ul><li>Good PR </li></ul><ul><li>Competitive advantage </li></ul><ul><li>Employment Rights </li></ul><ul><li>Costs +11% (PAYE/NICs) </li></ul><ul><li>+ 3% Pension from 2012 </li></ul><ul><li>28 days paid holiday </li></ul><ul><li>39 weeks Maternity Pay </li></ul><ul><li>52 weeks Maternity Leave </li></ul><ul><li>Payroll administration </li></ul><ul><li>Difficult to change </li></ul><ul><li>Employing the wrong people </li></ul><ul><li>Added responsibilities </li></ul><ul><li>Pressure on cash flow </li></ul><ul><li>Legal and Safety compliance </li></ul>
  14. 15. So, which way is best for you?
  15. 16. What factors are most important to you?
  16. 17. June 7 2010 Page Are you ready to cast your vote?
  17. 18. June 7 2010
  18. 19. B2i Focus Group Mandy Fitzmaurice Change Partner HR [email_address] www.changepartner.co.uk 07990 776021 Merry Christmas & Happy New Year

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