Andy Warhol had a point when he said that time does not change things. It is actually we ourselves who change them. When change happens it can prove unsettling, disruptive or downright scary! For some companies, particularly staffing agencies, client adoption of a managed services program (MSP) supported by a vendor management system (VMS) falls into the ‘disruptive’ category – and they view the whole idea with a doubtful, if not negative approach. They become nervous and unsure and would rather avoid than embrace the change, despite recognizing that an MSP/VMS program can offer them a great deal of strategic advantage and improved productivity.
Some issues which make staffing companies wary of change, and full of questions when adopting VMS/MSP:
Of course, the above is an illustrative list and not an exhaustive one. MSP/VMS programs have become commonplace, and most staffing agencies grudgingly acknowledge that this is now a standard way of doing business. However, when staffing agencies harbor such fears, adopting a VMS/MSP for managing contingent workers becomes more difficult. But, the good news is that none of these concerns need to hold a staffing agency back from taking advantage of the additional benefits that the program can offer in terms of control, transparency into additional opportunities, and reduced administrative effort.
They can always deal with these and other concerns through a proactive approach at the outset:
VMS/MSP programs offer clients industry best practices for managing non-employee recruitment, onboarding, documentation and compliance, financial administration, and more. By establishing a strong partnership with the MSP/VMS provider(s), you can be better prepared to meet customer expectations and increase business opportunities. In a well-managed contingent workforce program, high performing staffing agencies should be confident of a level playing field in which all suppliers complete for business under the same rules, and the best are rewarded with business success.
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