Payroll Tips - February 2010 - Becoming a payroll consultant
How easy is it to become a payroll consultant, and is it wise to embark on a career path that offers none of the stability of full-time employment?
Mel Pizzey, recruitment director at Chase Moulande looks at the pros and cons.
When someone at a senior level is made redundant such as a payroll manager or group payroll manager I am often asked if they should consider becoming a payroll consultant. My initial reaction is, can they afford to be out of work for three months, and have they got a skillset that other companies require?
Becoming a payroll consultant generally means you are contracted to fill a skills gap and take on a specific project. There are many plus points and downsides when contracting. I interviewed Paul Rains, director of Transact HR, who gave me an insight into the world of consultancy.
Why did you decide to become a payroll consultant?
I like variety and innovation, so when the opportunity to take redundancy from the corporate world came, I decided to give it a try. I was also looking for a more task/project-focused role after managing people in an operational role for years.
What would you say is your area of expertise?
Improving HR/payroll processes and continuous process improvement. That could mean HR transformation; ie, shared services, outsourcing, insourcing payroll or implementing a new HR payroll system.
What are the plus points of being a payroll consultant?
You are usually left to get on with the job at hand as there are rarely people issues to deal with, which take up time. You get to work with diverse industry sectors and its fascinating to see how the different industry sectors approach payroll.
Finally, consultancy offers more flexibility, allowing for a better work-life balance.
What is the downside?
It can be lonely, so if you enjoy working as a team or managing people, consultancy may not be for you.
You may also have to travel long distances to visit clients, which can mean long hours.
Would you recommend becoming a consultant?
Absolutely. Gain your apprenticeship in the corporate world first, and then when you feel you have the relevant experience you should go for it. Experience is the key, however.
What should people consider when becoming a consultant?
1. How to structure their own status to make the most of UK income tax and NI legislation. Do you want to be self employed or a limited company?
2. The risk there is no guarantee you will find work, or enough of it.
3. The cost of insurance professional indemnity insurance is essential, but you may also need to consider key man insurance, critical illness cover, private medical insurance and life cover.
4. The amount of work required to keep a consultancy running. There could be VAT returns, data protection registration, Companies House returns, annual company accounts to file, as well as dealing with marketing, updating your website and cashflow management.
5. Do you want to work from home or get an office? Most opt for working from home, but that can create space issues.
6. You must prepare a consultancy proposal for any potential client, and some form of contract to supply services. This takes considerable documentation.
What tips can you give a client who is considering contracting a consultant?
1. Involve independent consultants as early as possible in a project, particularly in any decision-making processes as they can give impartial, invaluable advice.
2. Ensure the scope of the project, as well as deadlines, have been agreed.
3. Be prepared to make key business decisions to enable the consultant to continue progressing with the project.
Melanie Pizzey, recruitment director, Chase Moulande Payroll Recruitment Specialists
Payroll World - February 2010
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