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Currently, there are approximately 1.7 million temporary workers in the UK. According to the Office of National Statistics, this number has risen by about 200,000 since 2020. Did you know that all these workers legally require a Key Information Document (KID) before employment? That’s more than a handful of KIDs, isn’t it?
Imagine for a moment, you’re a temporary worker about to engage in an assignment.
What would be the questions lingering in your mind?
• What will my pay be?
• How will I be paid?
• Who exactly is my employer?
• Who is paying me?
• What deductions should I expect from my pay?
• When will I receive my payment?
The decision of choosing a payroll provider can be as complex as navigating a labyrinth, with various risks and considerations involved. You’d be contemplating the expected pay rate, deductions, holiday allowance, sickness policies, and notice periods. Doesn’t a guide seem helpful in this scenario?
That’s precisely the role of the KID! It is a beacon of transparency, shedding light on the specific terms of each assignment for all parties involved in temporary recruitment. It equips contractors with immediate access to key pay-related information before agreeing to terms with an employment business, providing a clear understanding of how fees and deductions will influence their pay.
Let’s take a trip back in time.
Before mandatory KIDs, imagine the chaos. Workers had a tough time comparing offers from various employers due to the lack of transparency from the start. This murkiness often resulted in poor decision-making and a range of complications for the employment businesses down the line. Can you imagine the strain this would put on both workers and businesses?
Luckily, in April 2020, new regulations were introduced, transforming KIDs from a nice-to-have into a legal requirement for all temporary workers before agreeing to terms and signing with an employment business.
With this change, workers found themselves empowered, armed with the knowledge to make the best decision for their needs. And employment businesses? They had to commit to universal terms with all their contractors, resulting in a more transparent and safer space for those preferring flexible working arrangements.
While a KID’s main objective is to inform workers, it also provides several advantages to payroll companies and agencies.
Consider this – you’re a payroll company presenting a KID. Not only does it showcase your business’s professionalism, gaining the trust of the contractor, but it also serves as a platform to clearly communicate your offerings and promotions. The KID sets the stage, building the first impression for a new potential customer. Can you see the potential here for growth and increasing your contractor payroll volume?
As a payroll provider, efficiency and accuracy are your top priorities when generating illustrations and KIDs. It’s about streamlining your onboarding process and enhancing relationships with your workers. A customisable, professional-looking KID can be the key element in conveying transparency, knowledge, and trustworthiness to the contractors. Sometimes it may even be a ‘make or break’ factor when it comes to making the final decision about a preferred payroll provider.
As we navigate the complexities of the payroll landscape, it becomes evident that technology can significantly streamline the process, particularly when it comes to generating KIDs.
Here’s where My Digital comes in to help. It’s a comprehensive payroll solution, designed with KID capabilities that are second to none. It allows for the efficient and accurate creation of KIDs, all while maintaining a user-friendly interface. With My Digital, the production of these essential documents becomes a streamlined, almost effortless task, enabling you to focus on the more strategic aspects of your payroll duties.
But what truly sets My Digital apart is the team behind the technology. Our expert staff are always on hand to assist you, offering their wealth of knowledge and experience to guide you through any challenges you may encounter. Whether you’re dealing with a complex payroll issue or simply need advice on generating a KID, our team is ready and willing to support you.
The importance of Key Information Documents cannot be overstated. They not only empower temporary workers with crucial information but also offer valuable advantages to payroll companies and agencies. With feature-rich software solutions like My Digital the creation and management of KIDs have never been easier.
Now more than ever, payroll providers have the opportunity to leverage these technological advancements to improve their processes and relationships with workers. With My Digital, you have an excellent tool and a team of experts at your disposal, making the journey through the intricate world of payroll that much smoother.