Why prompt payments matter
When you’re in the business of hiring contractors, prompt payment is crucial. This is true no matter what industry you work in, yet nearly half of all employees in Europe have been paid late, according to research by SD Worx. Aside from the obvious frustration such delays cause workers, late payment also presents a range of significant business issues.
It is unsurprising that late payment to contractors and employees can lead to disengagement, with 88% of surveyed staff saying that not being paid on time has a negative effect on how they perceive their employer. Low morale and trust can spread like wildfire in the office, with actively disengaged workers costing the economy billions of pounds every year. Outside of the tangible cost of disengagement, no company wants unhappy workers on their books, particularly if they are skilled contractors who may be helpful on future projects. At Quanta, many of our contractors work with us on a repeat basis, so we do everything we can to keep them happy – and that includes playing on time.
Organisations that are notorious for paying late can attract a negative reputation within their industry, which can impact a company’s ability to not only hire and retain the best talent, but also work with preferred suppliers. Word travels quickly, particularly in smaller or more competitive industries where companies are competing for the same talent, so if you have a reputation for late payment, you may find yourself losing out to your rivals. Conversely, a reputation for efficient payment can filter through networks and see you becoming the organisation of choice for contractors in your industry.
Encourage candidate relationships
Prompt payment and positive candidate care can encourage contractors to be more proactive and timely with their own timesheets and invoices. It can also help you establish and develop more trustworthy relationships within your industry, creating a positive culture and hopefully helping to provoke change in areas where prompt payment still isn’t the norm.
What we’re doing to help
We take prompt payment very seriously at Quanta, making 5500 payments annually with an annual error rate of 0.2%. We pride ourselves on our commitment to candidate care and know that paying our contractors correctly and on time is a big part of this. Because of this, we’re known for our favourable payment conditions and have retained many of our freelance consultants who return to us time and again.
If you’re interested in contract work where the candidate care is second to none, take a look at our latest vacancies here.