“Never again I want my own staff”, says Harry de Boer. His Rotterdam plumbing company went bankrupt in 2015 due to too little work and too high labour costs.
At the restart Harry immediately chose to work with employees on payroll. “Of course I want to choose my own staff, but I do not want the employer’s risks”. Now the company is back on its feet, showing positive figures, payroll remains the favorite.
Around 1.9 million people in the Netherlands have a flexible employment contract. This includes many payrollers. A payroll organization is in fact an employment agency or a professional employer that hires people as a legal employer and lends them to other companies. But with one major difference: as an operational employer you are responsible for recruitment and selection and the payroll company is legally responsible. That works perfectly in the installation sector, where many people have been working with the same group of self-employed workers or permanent employees for a long time, and therefore know exactly who they want and who do not want in their team.
In fact, payroll is a purely administrative construction. But one without the employer’s risks with permanent staff.
“The added value of payroll differs per organization,” said Julius Kousenbroek, managing director of WePayPeople. “The chance of absenteeism is greater in physically demanding work. The construction and installation world is also more sensitive to the economic climate, and therefore to staff surpluses or, as now, a shortage”. Payroll can be of vital economic importance, plumber de Boer has recently experienced. “One of our people underwent a hernia operation and was at home for months. Without payroll, we would have been bankrupt again, because those absenteeism insurances are too expensive.
”More and more companies are using payroll to be able to grow further. Particularly in the case of unexpected major projects that require additional manpower, the workforce can be expanded to include new colleagues from whom it is easy to say goodbye afterwards. After all, there is no dismissal.
At the same time, payroll also stimulates long-term working relationships. As an operational employer you do not have to deal with dismissal law and compensation for absenteeism. This often means that you are more willing to bind good people to your company.
For the employer and employees, payroll is an automated process which works efficiently. Starting up is done within 1 day, after that logging in once a week is enough. All personnel data is available 24/7, including state-of-the-art management reports.
De Boer: “My HR administration only consists of approving the hours that my people enter in the system themselves. I pay a slightly higher hourly wage through WePayPeople than when I hire my employees myself, but this gives a lot of rest and no more stress!
Moreover, I no longer lose time and money on employment contracts, continued payment of wages and insurance in the event of disability, annual statements, dismissal procedures, salary administration, processing of collective labor agreements and changes to the law, and of course all the hours of the accountant for payroll administration. ”
Kousbroek provides another example of a concern that his company takes over. For the more than 10,000 people he has on the payroll for his clients, he receives a number of distraints of wages per day. “We don’t bother the client with that either. Except of course if the employee has stolen the van from his previous boss; then we give a signal. ”
In short, De Boer ‘s mailbox remains pretty empty now that there are no invoices and declaration forms from UWV, the Tax and Customs Administration and the occupational health and safety service. All of that has been replaced by 1 clear WePayPeople invoice. The frequency of invoicing depends on the agreements. What is certain is that there is a lot of flexibility in the possibilities, as well as in the payment periods, varying per week, per 4 weeks or per month.
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