Chris Bryce – Chief Executive of FCSA
Several new technologies, such as AI and machine learning, are emerging that have the potential to enhance the umbrella company industry and help protect workers.
Workers are turning to umbrella company providers as never before as the effects of off-payroll working legislation, the increasing popularity of self-employment, the rise of the gig economy and the growing requirement of industry for a flexible and agile workforce.
Umbrella companies all over the UK have risen to the task by providing greater service levels, a solid and ongoing commitment to compliance, and ensuring their systems are as up-to-date as possible. However, the challenge facing umbrella providers is an ever-changing regulatory framework in hugely complex areas of law – tax and employment. Despite these challenges, the industry also has many opportunities to thrive. One of the most significant opportunities is the rise of new technology.
Several new technologies are emerging that have the potential to enhance the umbrella company industry and protect workers. For example, blockchain technology could create a more secure and transparent payroll management method.
Blockchain is a distributed ledger technology that can be used to record transactions securely and transparently. This technology could create a more secure and transparent way to manage payroll for umbrella companies.
With blockchain, all payroll data would be stored on a distributed ledger that is accessible to all parties involved in the transaction. This would make it much more difficult for anyone to tamper with or falsify payroll data. It would also make it easier for workers to track their earnings and ensure that they are being paid correctly.
Artificial intelligence (AI) and machine learning:
AI and machine learning are two other technologies that have the potential to revolutionise the umbrella company industry. AI can be used to automate a wide range of tasks, such as processing payroll data, managing tax compliance, and providing customer support. Machine learning can be used to identify patterns and trends in data, which can be used to improve the efficiency and effectiveness of umbrella companies.
For example, AI could be used to automate the process of processing payroll data. This would free up time for umbrella company employees to focus on other tasks, such as providing customer support. Machine learning could be used to identify patterns and trends in tax data. This information could be used to help umbrella companies ensure that they are complying with tax laws.
The benefits of new technology:
New technology can help umbrella companies in a number of ways. It can help them to operate more efficiently, improve the accuracy of their payroll data, enhance the security of their data, and improve the quality of their customer service.
New technology can help umbrella companies automate many tasks, such as processing payroll and managing tax compliance. This can free up their staff to focus on other areas, such as providing customer support. It can also lead to cost savings, which can be passed on to workers through higher wages.
New technology can help umbrella companies to reduce the risk of errors in their payroll data. This is important because errors can lead to financial losses for both the company and the workers. For example, an error in a worker’s tax code could result in them being underpaid or overpaid.
New technology can help umbrella companies to protect their data from unauthorised access. This is important because data breaches can significantly impact both the company and the workers. For example, a data breach could result in workers’ personal information being stolen, leading to identity theft.
Improved customer service
New technology can help umbrella companies to improve the quality of their customer service. For example, they can use chatbots to answer common questions and provide support 24/7. This can reduce the waiting time for customers and improve their overall satisfaction.
Overall, new technology can help umbrella companies to operate more effectively and efficiently. This can benefit both the company and the workers.
The use of new technology has the potential to revolutionise the umbrella company industry. By embracing new technology, umbrella companies can improve efficiency, accuracy, security, and customer service. This can help them attract and retain more workers, provide better and more secure services and enable them to grow.