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Umbrella companies: recruiters reveal contractor referral influences

Umbrella companies: recruiters reveal contractor referral influences

Recruiters are listening to contractors’ feedback and value it above anything else when deciding which umbrella company to recommend, according to new research. 

A survey by employment services provider Parasol has found that a good contractor experience is the most important factor in a recruiter’s decision to refer contractors to a particular umbrella company.

The poll saw Parasol ask recruiters to describe what influences their decision on which umbrella provider to recommend.

Of more than 160 respondents, 74% said an important factor was hearing from contractors that the service they receive from an umbrella is good. That’s a higher percentage than any other factor.

In joint second place were a good personal relationship with the contact at the umbrella provider, and a low volume of problems.

Preferred supplier lists (PSLs) were a factor for 65% of respondents.

In contrast, only 15% of recruiters said accreditation by a professional body mattered to them. Less than 30% cited financial rewards and incentives as a factor.

Derek Kelly, managing director at Parasol, said: “These findings illustrate the importance of word of mouth and feedback in the contractor recruitment supply chain.

“For all the emphasis placed by umbrellas on accreditations and incentives, it seems a good service for the contractor and a solid working relationship with the agency still trumps everything.

“This survey just goes to show that reputations and good relationships mean everything in the staffing industry supply chain.”

Warrington-based Parasol has provided employment services to more than 55,000 skilled professionals in sectors such as IT, telecoms and engineering since its launch in 2000.

The company works with major recruiters including Hays, Alexander Mann Solutions, Adecco, Capita Resourcing and Reed.

Career contractors who join Parasol become employees of the company, reducing admin and hassle for recruitment agencies and mitigating the risks they are exposed to.


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