The Multiple Interests of Wage Transfer for ESNs

As a Digital Services Company (ESN) you have been finding it increasingly difficult to recruit since the start of the health crisis. It was estimated that before the latter happened, it took an average of 32 days to recruit in France. This duration is now exploding, often up to 10 weeks for strategic profiles (1). As an ESN, the availability of your skills is an important topic. Engaging a freelancer is going to be an important opportunity that you must be able to seize in complete safety.

Why Use a Payroll Transfer Company Like ESN?

Wage transferability works well in this regard. Indeed, the legal framework defining wage transfer protects against many risks associated with subcontracting management. The offense of haggling is often feared by ESNs (2). This offense is characterized by several elements. Most visible is the passage of subordinate relationship of his employer to that of the client of his employer. To constitute the crime of haggling, this new hierarchical link must also benefit the customer’s business to the detriment of the rights of the employee providing the service. However, the operation of a payroll transfer business inherently excludes the relationship of subordination between the principal and the transferor, but also the illegal loan of labor.

Focus on the functioning of a payroll transfer company

Wage transferability revolves around a three-way relationship between the payroll transfer company, the self-employed consultant and the client company. For example, 2i Portage hires an IT consultant with a permanent or permanent contract. This new employee benefits from an employment contract and thereby opens up the right to mutual insurance, unemployment insurance and precautionary insurance from 2i Portage. Secured by this framework, the IT consultant concentrates on his activity and offers a service to an ESN. The client needs his expertise for a specific project. The client company and the independent consultant negotiate the price of the service together. The payroll transfer company is present to provide an administrative framework.

What are the costs of wage transfer for an ESN?

The ESN determines the price of the service as part of the negotiations with the relevant advisor. She only pays the cost of the service. The payroll transfer company is reimbursed by: deduct management fees directly from the revenue excluding tax invoiced to its customers. These costs come in a reduction and not an increase in the TJM negotiated between the client company and the consultant performed.

With a view to short contracts, the ESN can easily compare the costs of wage transfer with those of a CDD or temporary work. In the case of a CDD, the exemption for the company payment of employer’s contributions, paid leave, precarious premium, quickly makes babywearing much more attractive. Engaging an employment agency is also based on a three-party system, similar to transferring.

However, the subordination caused by this type of employment contract and the higher rates of the employment agency make wage transfer much cheaper. Carrying out a simulation of the costs of fixed-term employment contracts, temporary work and wage transfer is clear: the latter solution appears to be the most advantageous for companies.

The 5 most important benefits of a payroll transfer company for an ESN

1# Limit your wage costs

The current situation encourages managers and HR teams to exercise great caution. In this context, the ESN will try to limit its wage bill. The payroll transfer allows you to integrate a strong skill, ensuring the smooth progress of your project, without increasing the payroll.

2# Lighten the burden of the HR team

The administrative and HR management of the expert you integrate is managed by the team of the umbrella company. Your team limits the significant investment associated with subcontracting purchases.

3# A fulfilling status for the self-employed person

The wage portal consultant is relieved of administrative formalities and is better covered. He is thus in a reassuring situation that allows him to concentrate on the core of his activity.

4# Enrich your pool of potential candidates

Porting can be used as a pre-hire, with no time limit, so you can test a candidate without risk.

5# Secure your business

As we have already written, wage transfer protects for an ESN from the risks associated with outsourcing (negotiation, illegal labor lending, requalification, etc.). It also protects you against certain financial risks thanks to the absence of intercontracts.

How do you choose a payroll company?

The first step concerns: the definition of your need. Which profiles do you need in the coming months? The answer to this question will allow you to determine whether the payroll transfer company is used to supporting these profiles, some are: over-specialized or even poor.

The main questions to ask yourself are:

  • Does the transport company offer you? a dedicated contact personresponsive and able to advise you?
  • Is she respecting the official legal frameworkmember of the Union of Portage Salarial, the PEPS?
  • Her consultants testify to: their satisfaction both in terms of optimization reward than technical advice?
  • What offer can it offer you? What services are offered parallel to the management of worn profiles?
  • How long has she been practicing? Does it have solid financial guarantees?
  • How does it enable you to keep an eye on the outsourcing you use ? Through which tools?

Finally, with this offer you can take advantage of ” talent “, found on the platform that allows to manage its nests and access the CV library of available profiles. This is a real pool of experts at the service of your future missions.

(Photo credit: iStock)

(1): https://www.meteojob.com/emploi-actualites/actualite/131020201/quel-est-le-temps-moyen-dun-processus-de-recrutement

(2): https://www.journaldunet.fr/management/guide-du-management/1200089-delit-de-marchandage-un-risque-pour-les-prestataires-de-service/

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