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Vendor Management for Staffing Agencies: Benefits and Considerations

In the current employment landscape, staffing agencies play an important role, helping to match available candidates with employers' critical needs. In many cases, staffing agencies represent the missing link between internal recruitment efforts and workers on the search for new employment opportunities.

In addition to working with enterprise, small business and individual applicant clients, staffing agencies also partner with numerous vendors and suppliers, and must keep these relationships organized. The solution is to leverage an advanced vendor management solution that can enhance efficiency and streamline workflows while providing the key features staffing agencies require.

A look at the current staffing industry

According to numbers gathered by the American Staffing Association, needs are on the rising within the staffing agency sector, and these firms are providing key advantages with the candidates they place:

  • More than 3 million temporary and contract workers are supported by staffing agencies during a typical week.
  • About half (49 percent) of candidates note that working with a staffing agency is a beneficial way to obtain a permanent position.
  • Ninety percent of employees said partnering with a staffing agency made them a more employable candidate.
  • About one-third (35 percent) of placed candidates were offered permanent roles within the organization, and two-thirds (66 percent) of workers accepted those opportunities.
  • Staffing agencies assist organizations and applicants in an array of industries, including health care (9 percent), the industrial sector (37 percent), enterprise office positions like clerical and administrative roles (28 percent), and engineering, scientific and information technology (13 percent).

"About one-third (35%) of placed candidates were offered permanent roles."

As of the first week of December 2017, positions available through staffing agencies increased 0.83 percent from the previous year, on trend with an overall rise in staffing agency demand.

The need for VMS

While many staffing agencies have utilized piecemeal or homegrown worker and vendor management systems for years, now is the time to upgrade to an advanced solution that provides all of the necessary capabilities within a single, easy-to-use portal.

"The true benefits of using a blended workforce, consisting of temporary employees, independent contractors and consultants, can be realized best when the contingent worker management program is carefully planned and effectively executed," Global Solutions EVP Ozzie Myers wrote for LinkedIn. "Here's where the market keeps talking about the great value addition offered by a Vendor Management System (VMS) that offers a cloud-based portal for managing a contingent workforce program."

There's a few key advantages that staffing agencies can realize through the use of an advanced VMS, including:

  • Streamlined workflow: A leading VMS will provide key staffing functionality in a single, accessible location, including capabilities for recruiting, competency testing, payroll, scheduling and more. This enables users to considerably streamline their most critical working processes, saving time and eliminating time-consuming, manual activity.
  • Increased efficiency: When essential workflows are streamlined, both staffing agency workers and employment candidates can enjoy boosted efficiency. This means candidates can be placed with companies more quickly, helping to speed the business's time to market.
  • Cost savings: Improved working processes and greater efficiency can also translate to a rise in productivity within the staffing agency, helping to reduce key costs related to recruitment, placement and onboarding.

     Job interview - one man in a suit shaking the hand of another man wearing a suit and holding a folder.
    Staffing agencies help match candidates with the best business employment opportunities.

Top considerations: What to seek out in a VMS

In order to reap these and other crucial benefits, staffing agency decision-makers must select a VMS platform that provides certain capabilities. Not all VMSes are one-in-the-same, but choosing one that meets the agency's requirements will help boost the return on investment and overall value.

When seeking a VMS, agencies should choose a platform that provides key metrics and reporting, including the number of applicants and company requests seen per month, the number of interviews completed, the amount of positions filled, and more. This feature can lets staffing agencies get the best insight into their workflow, and make informed decisions about the future.

It's also imperative to utilize a VMS created with the needs of the industry in mind. For instance, if your staffing agency specializes in filling positions within health care provider institutions, your employees will need a system that takes into account the nuanced needs of your sector, including compliance management and competency testing.

To find out more, connect with the experts at BlueSky Medical Staffing Software today.

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