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A new survey of UK temporary recruitment businesses has revealed that inefficient technology and processes are significantly impacting workforce productivity. Commissioned by Finity, a leading back-office ecosystem for recruitment businesses, the survey underscores the urgent need for businesses to invest in modern payroll technology, with nearly half( 46 %) of respondents claiming to waste between 16 and 30 hours per month using outdated systems.

The report highlights technology gaps and integration issues, with the highest number of respondents( 59 %) stating that a lack of integration between payroll and banking systems is causing administrative delays and inefficiencies in their business.

Manual processes are also the source of much frustration among temporary recruitment professionals: nearly half( 48 %) expressed annoyance over excessive manual tasks due to a lack of automation. While 45 % said a major challenge of their role was due to recurring human errors and excessive time spent managing payroll processes. show there are more than 1.5 million temporary workers in the UK, so the knock-on effect of these payment delays should be of major concern.

Complex banking and payments processes affected 67 % of companies who pay temporary workers, with respondents naming challenges with bulk payments, BACS deadlines and card reader requirements as the primary culprits. Agencies seem to experience integration issues also: 63 % reported a lack of streamlined payroll, timesheet and payment systems.

And in a further piece of research carried out by Finity, 44 % of the senior decision-makers polled admit they have fired a payroll supplier because they were late paying their temporary workers. This highlights the direct and significant impact late payments are having on the entire supply chain and recruitment ecosystem.

In news that should concern the industry, more than half( 57 %) of respondents indicated they would even consider switching companies for better payroll technology, with no respondents stating they were happy with the amount of time they spend managing the payroll cycle.

Varun Monteiro, CEO of Finity, said:“ The findings of our research are stark: payroll inefficiencies caused by technology and processes are not just a back-office inconvenience – they are a direct threat to productivity and talent retention.”

Despite temporary workers playing a critical role in the UK economy, the research found that 43 % of companies struggle to pay temporary staff on time due to inefficient technology. Latest ONS figures

Samantha Hurley, Operations Director at the Association of Professional Staffing Companies( APSCo), said:“ These findings highlight a critical challenge facing our industry. Nearly threequarters of payroll professionals lose more than a day’ s productivity each week due to technology and process inefficiencies. This represents a business cost and a strategic disadvantage in a competitive marketplace.

“ The statistics around payment delays for temporary workers are especially concerning, as timely payment is fundamental to maintaining a reliable flexible workforce.

“ The recruitment sector’ s success depends on attracting top talent and operating efficiently.

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