Why did the Staffing Company Cross the Road? Because they need a VMS! | DCR Workforce Blog

Why did the Staffing Company Cross the Road? Because they need a VMS!

The much-hyped benefits of using a contingent workforce can be realized only when the contingent worker management program is carefully planned and all its elements are effectively executed.

Organizations place the responsibility on staffing companies, who offer themselves as employers of record for contingent workers and provide end-to-end support through worker administration. The Service Level Agreements between a staffing company and its client assign most of the responsibility for the effective management of the contingent worker program to the staffing company. We can say, with confidence, that providing temporary staffing solutions becomes extremely easy with the adoption of a reliable Vendor Management System (VMS).

Reservations of staffing services companies

Not all suppliers agree that a VMS is in their best interest, and they may have unexpressed reservations against the idea of bringing in a Vendor Management System as well as an intermediary in the form of a Managed Services Provider (MSP). They also may dislike the idea of a supplier-funded VMS, its disciplined approach to the distribution of requirements and its scrutiny of supplier performance and the standardization of rates. Many staffing suppliers may also erroneously think that a VMS translates to oppressive control over their staffing services and their rates as well as potentially fear the competitiveness enforced by the system.

The benefits of crossing the road

The use of a VMS and MSP offers an organization and its managers, a great deal of control over the recruitment, use and management of a temporary workers, providing complete transparency and visibility into the program’s spend, management and performance. Staffing companies benefit a great deal, too, in different ways with a VMS in the mix – provided that staffing companies adopt their business strategy to include the functionalities offered by the VMS. By doing so, they would become much more efficient and increase their revenues substantially, irrespective of how big or small they are, as their staffing solutions enjoy the following benefits:

  • They get the opportunity to pitch for programs that increase their business volumes and provide them with access to a broader range of opportunities that will leave them managing much higher spend for clients. As more organizations embrace VMS programs, suppliers need to join such programs to benefit from the expanded opportunities that a VMS can bring their way.
  • Their administration gets streamlined and structured better as a result of the automated processes which, in turn, helps them to receive requisitions, find and submit candidates, complete onboarding and offboarding responsibilities, track contingent worker performance, communicate with the client and MSP as well as assess their own performance.
  • The VMS helps them proactively manage all requisitions, requests, offers, negotiations, actions, schedules, approvals and escalations without missing a beat. Through alerts and notifications, suppliers are apprised of important process-based steps that need execution. Many suppliers find that the reduction in business overhead and administrative costs more than offsets the expenses they may have to incur toward supporting the VMS.
  • The VMS ensures accurate invoicing and automated billings with accurate timekeeping and prompt payments, which is a scourge in any industry. It also automates processes involving the whole gamut of operations connecting contingent workforce management such as sourcing, assignment management, project management, onboarding, offboarding and effectively executing Statement of Work (SOW) projects.
  • They gain clear insight into their performance and better understand their strengths and weaknesses. This helps them to refine and re-design their business strategy for better results, thanks to the data mining, reporting and analytics features offered by the VMS. Among other things, the reporting feature of a VMS helps to rank suppliers against each other, based on their performance parameters without human bias interfering. For a supplier who has an assured slot in the Tier 1 performers, a number of regular business opportunities – with the potential for a long-term association – will open up, without any overhead costs being incurred.
  • The right VMS will help the staffing companies and their clients avoid crossing any legal lines with joint employment liability and other compliance requirements involved in the use of contingent workers. Along with overall industry policies and internal company rules, the VMS enables the tracking of training, testing and sign-offs.
  • The VMS enables all the stakeholders including the suppliers to enjoy an established and formal process for not just communication and interaction, but also to address suggestions and concerns.

All these advantages enable a supplier to focus more efforts on sourcing the right talent through recruitment as they need less time and money to spend on expanding business opportunities and administrative tasks. A supplier with a good track record for performance can reach even greater heights, as they focus solely on the quality of talent they source and supply to their clients.

Conducting periodical evaluations in addition to rewarding and recognizing the top performers for their staffing services is easily possible for any organization that uses a reliable Vendor Management System. No high-performing supplier needs to mind such recognition through such a useful tool offering a great value addition!

If you’re interested in crossing the road to a world-class VMS, Smart Track, email us at sales@dcrworkforce.com.


Disclaimer:
The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.
Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.