5 Essential Steps for Auditing Your Agency Worker Suppliers

Auditing your agency worker suppliers isn’t just about ticking boxes – it’s about protecting your business from risks, ensuring compliance, and securing top talent. Here’s a friendly, no-nonsense guide to getting it right:

1. Map Your Supply Chain

Start by identifying every agency, umbrella company, and intermediary in your contingent labour supply chain. Many compliance risks (like tax avoidance schemes or IR35 breaches) originate from hidden layers in your supply chain. A clear map helps you spot weak links and ensures accountability.

Pro tip: Focus on transparency. If a supplier can’t clearly explain their subcontracting practices, it’s a red flag.

2. Verify Right-to-Work and Compliance

Ensure every worker has valid right-to-work documentation and that suppliers are adhering to IR35, GDPR, and the Criminal Finances Act 2017.

• Check methods: Accept only Home Office online checks or certified IDSP validations for British/Irish workers. For others, insist on manual checks with original documents.
  
  
• Audit trails: Suppliers must provide time-stamped evidence of checks – no exceptions.
  
  

3. Assess Financial and Legal Risks

Look for misclassification risks (e.g., incorrectly labelling workers as self-employed) and ensure suppliers have insurance for workplace injuries or disputes.

• Ask: Who covers costs if a worker is injured?
  
  
• Review contracts: Confirm clear terms for performance issues, dispute resolution, and liability.
  
  

4. Evaluate Ethical Practices

Your suppliers’ ethics reflect on your brand. Check for:

• Labour law compliance: Minimum wage, working hours, and anti-exploitation policies.
  
  
• Diversity efforts: Are they actively promoting inclusive hiring?
  
  
• Environmental standards: Responsible waste management and sustainability practices.
  
  

5. Monitor Performance Consistently

Set KPIs like no shows and candidate quality..

• Spot-check quarterly: Review 10% of your workforce annually, with random samples between formal audits.
  
  
• Use tech tools: Platforms like express HR simplify tracking corrective actions and generating reports.
  
  

How a Neutral Vendor Like Datum RPO Simplifies Audits

Auditing multiple suppliers manually is time consuming and prone to errors. Datum RPO’s vendor-neutral managed service solves this by:

• Centralising compliance: Real-time dashboards track right-to-work checks, certifications, and performance metrics across all suppliers.
  
  
• Automating risk alerts: Flag non-compliant suppliers or expired documents instantly.
  
  
• Providing expert oversight: Their team handles supplier vetting, contract reviews, and ethical audits, so you don’t have to.

With Datum RPO, you gain peace of mind knowing your contingent workforce is compliant, ethical, and high-performing – without the admin headache.

And Finally…

Regular audits are your best defence against compliance nightmares and reputational damage. By partnering with a neutral vendor, you turn a complex chore into a strategic advantage. Ready to streamline your audits? Datum RPO’s got your back.