More and more entrepreneurs are turning to payrolling to combine flexible assignments with job security. It is a solution that allows them to build the foundations of their future business while limiting the risks. Here are some insights from the experts at AURIS Finance, a consultancy specialising in mergers and acquisitions.
Since the pandemic, the labour market has undergone profound changes. In their search for greater freedom and flexibility, more and more former employees are choosing to work outside the corporate framework.
A hybrid formula
Although payrolling was first introduced in France in 1980, this flexible employability solution is now gaining in popularity. It has the dual advantage of enabling talented people to work independently and flexibly, while enjoying all the social benefits of a conventional employment contract (entitlement to unemployment benefit, company health insurance and retirement pension). A simple concept: the employee carries out the assignment. They are remunerated via an ‘umbrella’ company, which pays them a salary. This salary is equal to the value of their turnover, excluding VAT, less social security contributions, tax and management costs.
Socially protected entrepreneurs
Unlike traditional routes to self-employment, which are often characterised by a lack of comprehensive social security cover, payrolling offers full protection, including an allowance for pensions, sick pay and other benefits. It’s a reassuring form of social inclusion for those who want to get started without sacrificing their personal and family security.
As far as companies are concerned, the use of self-employed workers is becoming more widespread. The pandemic has led to a large number of resignations within very large companies, which are now struggling to attract new profiles. According to the CEGELEM study entitled “Freelance and Payrolling”, 90% of companies value working with freelancers. In particular, companies choose outsourcing when they are looking for specialised skills. For these specific and rare skills, which are essential to the running of their business, they do not hesitate to revise their remuneration levels upwards.
A gateway to innovation
Over the course of a series of one-off assignments, these profiles gain skills and build a network. This means that payrolling can be a real stepping stone to the creation of a more structured business. By working with companies, constantly assessing their needs and dealing with the difficulties of setting up operations, these entrepreneurs make progress in their service offering. The variety of tasks enables them to acquire skills and assess the depth of their market. Once they have done this, they are in a better position to embark on an entrepreneurial adventure. In fact, good business ideas are often the result of a side step, as demonstrated by the journey of Frenchman Thomas Wolf, founder of the company Hugging face, which has developed a platform that brings together one million artificial intelligence models, half of which are freely accessible. Born of an idea “one evening during a conference”, the start-up is now valued at €4.5 billion.
Our experts at your side
An innovative company can grow if it has the right financial partners. AURIS Finance’s experts are specialised by sector and have long-term relationships with the companies they work with. We are at your side from the very first fundraising rounds, helping you to find partners who share your ambitions and business vision.
