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.

Transcript

B2i Focus Group

Mandy FitzmauriceChange Partner HR

Dec 13 2010

Employ

Sub-Contract

June 7 2010 Page 4

The objective today..

June 7 2010Good decision…

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….

June 7 2010

Time to move on to the next level…

June 7 2010

What’s the benefits of using Sub-Contractors?

FlexibleSpecialist skillsControl costsNo PAYE/NICsTemporaryPay as you goNo employment

rights

June 7 2010

On the other hand, there are risks:

Can be expensive No commitment Reliability Competence Safety Insurance Confidentiality Quality of work

and …

June 7 2010

You need to guard against any challenges from HMRC:

! Written Agreement! Own tools/equipment! Substitute! Bear £ risk! Fixed price work! Freedom to decide what,

how & when to work! Regularly work for others! Correct poor work @

own cost & time

Flexible Specialist skills Control costs No PAYE/NICs Temporary Pay as you go No employment rights

Can be expensive No commitment Reliability Competence Safety Insurance Confidentiality Quality of work HMRC issues

June 7 2010

What about being an employer?

Continuity Control Fixed cost Quality Reliability Commitment & loyalty Ownership of expertise Legally protected Good PR Competitive advantage

June 7 2010

And the downsides?

Employment RightsCosts +11% (PAYE/NICs)+ 3% Pension from 201228 days paid holiday39 weeks Maternity Pay52 weeks Maternity LeavePayroll administrationDifficult to changeEmploying the wrong peopleAdded responsibilitiesPressure on cash flowLegal and Safety compliance

Continuity Control Fixed cost Quality Reliability Commitment & loyalty Ownership of expertise Legally protected Good PR Competitive advantage

Employment Rights Costs +11% (PAYE/NICs) + 3% Pension from 2012 28 days paid holiday 39 weeks Maternity Pay 52 weeks Maternity Leave Payroll administration Difficult to change Employing the wrong people Added responsibilities Pressure on cash flow Legal and Safety compliance

So, which way is best for you?

What factors are most important to

you?

June 7 2010 Page 17

Are you ready to cast your vote?

June 7 2010

B2i Focus Group

Mandy FitzmauriceChange Partner HR

mandy@changepartner.co.ukwww.changepartner.co.uk

07990 776021

Merry ChristMas & happy New year

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