What makes a good umbrella company? Which ones provide the best service all around?
Comparison Shop Your Umbrella
A new comparison web site started in September which can make it much easier for contractors to answer these questions. Umbrella Supermarket offers rankings of umbrellas, and a slew of information about them all to help you make a good choice.
It's not surprising that the Aylesbury, Bucks-based Umbrella Supermarket was created by people who formerly worked for an umbrella company. ''Peter Warren and I started Umbrella Supermarket when we left OrangeGenie last summer,'' says Kylie Martin. ''We both felt that there was a clear gap in the market that needed to be filled. Contractors were acting blind, simply being referred by an agency or a colleague to different umbrellas with no idea of how to judge the ones they were considering. Prior to this site it was impossible to really understand if you were making the right choice – and that choice is so important for a contractor.''
Launched By 'Mystery Shopping'
To launch the site, Warren and Martin researched all the 90-odd umbrella companies in operation in the UK. Then they used a 'mystery shopper' type approach to evaluate them; they called up as contractors seeking the services.
Previously contractors just got referred to umbrellas but now they can make educated judgements about them
Kylie Martin-Umbrella Supermarket
''We soon worked out the qualities on which umbrellas could be compared. Some just didn't answer the phone. Others weren't able to provide accurate information up front. Others didn't offer solid customer service, or just didn't provide a full explanation when contractors had questions.''
Good and Bad Practice
Martin gives a good example. ''Typically, contractors will put in for expenses that they don't have a right to demand,'' Martin says. ''Some umbrellas won't even call the contractor to explain; the contractor only gets the bad news when the pay comes in. Then the contractor has to try and find out what happened; the best umbrellas see that the contractor always knows what is happening with their account.''
Because the site is independent, it can make fair judgements about the umbrella companies. ''We work without fear or favour,'' Martin insists.
Agencies seem to have welcomed the site. Says Phil Dancey from Interpeople said; ''There is such a huge array of companies offering a similar service that UmbrellaSupermarket will be a valuable resource for benchmarking and helping contractors to make a decision.''
And the site has been rewarded with regular and rapidly-growing traffic from contractors. Martin explains that without even any marketing, the site is developing a solid viewing audience. The new company will make a more sustained marketing effort in the coming months to ensure that the site will grow.
Positive Change
Martin notes that there has been some positive change in the industry which he attributes partially to the legislative changes last year. The managed service company legislation has increased the need for umbrellas to be certain that they are on the right side of the law, as Martin points out.
As in any industry there are some rouge operators but it is our task to uncover any bad practices before contractors are caught by them
Kylie Martin-Umbrella Supermarket
'There seems to already be dramatic improvement in regards to compliance in the industry. 2007 has been a defining year for PAYE Umbrella Companies and many more contractors are now choosing this method of trading as it’s a simple, quick and low cost option. During our mystery shopping exercise, I’ve found virtually all Umbrellas are compliant with current tax legislation. As in any industry, there are some rogue operators, but it’s our task to uncover any bad practices before contractors are caught by them.''