Recruitment agencies are under more pressure than ever to deliver faster placements with tighter margins and heavier compliance burdens. Traditional in-house payroll systems struggle to keep pace with modern labour dynamics — which is why the Professional Employer Organisation (PEO) model is quickly becoming the industry standard.

What is a PEO model?

A PEO acts as a co-employer, handling payroll, tax deductions, HR support and benefits on behalf of the agency. It reduces liability, simplifies administration and creates a consistent experience for contractors and clients alike.

The advantages for agencies

Automated RTI and pension submissions reduce risk.

Unified payroll platforms improve data accuracy.

Reduced internal costs free teams to focus on placements.

Stronger compliance posture during audits and HMRC reviews.

How Core Finance Management adds value

Core’s PEO solutions integrate umbrella and CIS models within a single system. Agencies gain real-time visibility over costs, contractor status and compliance dashboards — all backed by Core’s UK-based payroll specialists. It’s not just outsourcing; it’s co-employment with control.