Fixing the Gaps: Why Payroll Technology Matters More Than Ever in Recruitment
In today’s fast-moving recruitment landscape, paying workers on time should be a given. Yet, our latest research shows that 43% of recruitment agencies still struggle to pay temporary workers promptly.
This isn’t about pointing fingers – especially not at payroll teams, who work tirelessly to make things happen. The real issue lies in outdated, disconnected systems that simply aren’t built for the scale and speed that today’s recruitment businesses need.
In the UK, more than 1.5 million temporary workers form the backbone for many sectors, from healthcare to logistics to hospitality. The timely, accurate payment of these workers is more than an operational task; it’s about fairness, trust, and building long-term relationships.
When systems don’t work, people feel the consequences. It’s not theoretical – missed or late payments cause confusion, stress, and damage to people and business reputations.
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Why the Technology Matters
Our research also revealed that 74% of payroll professionals are losing at least 11 hours per week trying to navigate slow, outdated processes. That’s nearly a day and a half every week spent on tasks that could and should be automated.
These lost hours represent missed opportunities for payroll teams to contribute strategically to the business. Worse, many systems still require jumping between timesheet platforms, payroll software, and banking portals, creating unnecessary friction and risk. For example, when data is imported manually, human errors can slip through, resulting in temp workers not being paid correctly and clients left frustrated.
In our survey, 63% of recruitment firms say fragmented systems are a core issue. And 59% point to a lack of integration with banking platforms as the main reason behind payment delays. The result? Agencies lose trust with their workers and, in some cases, their clients too.
It’s significant that 57% of payroll professionals say they would consider changing jobs just to gain access to better technology. That should be a rallying call for our industry and clients.
The Opportunity Ahead
Despite the challenges, there’s a clear path forwards – and it’s one that leading temporary recruitment agencies are already embracing.
Unified, automated payroll systems are no longer a “nice to have.” They’re a must-have for agencies that want to scale efficiently, reduce risk, and provide a great experience for both candidates and internal teams.
With modern platforms, timesheets can flow directly into payroll and payments with minimal manual input. Accuracy improves, delays are reduced, and trust is built into the process. Time is then freed up for more strategic work.
A Practical Roadmap for Change
If you’re looking to modernise your payroll operations, here are five steps to get started:
- Start with a tech audit
Where are your current pain points? Are your payroll and banking systems integrated? Is your team doing repetitive tasks that could be automated? - Invest in integration, not workarounds
Unified platforms reduce errors and complexity. Avoid layering on new tools to fix broken ones – instead, aim for a connected ecosystem that’s built to scale. - Automate where it counts
From generating payslips to running bulk payments, automation saves time and reduces stress. It also allows your team to focus on higher-impact work. - Support your payroll team
These professionals are doing mission-critical work. Equipping them with the right tools is not just a technology decision, it’s a human one. - Plan for the future
Recruitment is evolving rapidly. The systems built today need to be flexible enough to adapt to a more agile, on-demand workforce of tomorrow.
Let’s Move Forwards, Together
Payroll in the temporary recruitment industry is at a crossroads. The old systems no longer serve the needs of modern recruitment. But with the right investment in technology, we can create better outcomes for workers, clients, and the teams behind the scenes.
Ultimately, this is about doing right by the people in payroll teams who keep the industry moving – and giving them the tools and systems they need to succeed.
The good news is that the solutions are here now and within reach.
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