Managing your contingent labor force in today’s market requires acute attention. To cast the broadest hiring net, managers leverage Vendor Management Services, or VMS technology to corral multiple agencies. However, VMS management gets out of hand quickly, and most organizations don’t have the resources to fully utilize its capabilities. To squeeze the most juice out of your VMS, partner with a Managed Service Provider, or MSP to pair this incredible tool with the experts to unlock it.
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The tool and the craftsman
An organization that doesn’t specialize in staffing that implements a VMS without an MSP is like ordering a new transmission for your car without a mechanic to install it. VMS programs by themselves are integral to finding candidates from a wide range of agencies. The VMS cloud-based technology acts as a go-between pipeline for agencies and hiring clients with key capabilities like requisitioning, billing and expense management, timekeeping, approvals, and flexible reporting.
It offers a secure, standardized platform for agencies to submit candidates to and clients to pick from. Some VMS tools even provide advanced analytics on agency and candidate performance among other metrics. Alluding to our metaphor of a transmission without a mechanic tough, a VMS leaves much to be desired without an MSP.
“The VMS provides managers with raw data and resources, and a partnering MSP makes sense of that data to deliver valuable insights. These insights allow clients to partner with outstanding agencies, ensure legal compliance, and mitigate the risks of hiring. An MSP is responsible for tasks like end-to-end supply chain management, data collection, HR system integration, and change management,” explains Andrea Micucio, CSSvSource Managing Director.
An MSP/VMS combination takes complete care of an organization’s contingent labor staffing, saving time and money. Here are six key benefits.
1. Quality of talent
Every contingent resource impacts your business, and an experienced MSP knows how to leverage their VMS to secure the right talent. Their valuable insights uncover which agencies provide the best of a certain type of labor allowing clients to route functionally specific requisitions to those most-able to fill them.
2. Cost management
A strategic partnership with an MSP allows you to offload negotiations through your VMS to the staffing experts. The broad salary visibility of an MSP allows it to gauge resource costs across markets to improve bottom lines for clients. A byproduct of investing in an MSP/VMS is the time it gives back to your business to handle core business initiatives. More time invested into core projects raises revenue.
3. Relationship management
An MSP/VMS acts as a buffer and a mediator between clients and the agencies they pull from. Having an expert organization devoted to agency relationship management opens doors and deals that your core business would not have had time to pursue in staffing. Think of it as employing an expert financial advisor to handle your investments for you instead of having to buy and sell yourself.
4. Deeper data insights and sensible analysis
The organization and interpretation of the raw data coming through your VMS is fully undertaken by the MSP. This allows your organization to make informed decisions without having to do the legwork. MSPs monitor every stage of the recruitment cycle from sourcing to screening to billing identifying efficiencies and deficiencies alike.
5. Risk mitigation
Struggling to track a slew of different SOWs is a great way to land in legal purgatory if a regulation or process is missed in the staffing process. This is another area where an MSP steps in to regulate requirements, SOWs, and other legally binding particulars in a staffing agreement. While acting as a buffer through multiple aspects of fielding agencies through a VMS, risk management may be the most important considering the legal implications of clouded commitments.
6. Partner with CSSvSource to utilize the MSP/VMS operation to streamline your contingent labor hiring
The vendor management team at CSSvSource provides expert contingent staff onboarding, payroll, organization, and communication to ensure your company and partners have the best available resources on the market. Connect with CSSvSource today and promote continuous agency partnership growth and development!