As the US contingent staffing market continues to grow, 122.1 billion in 2017 and expected to rise in 2018, the reality for staffing firms is that Vendor Management Systems (VMS) overseen by Managed Service Providers (MSP) will continue to embody a larger and larger share of the marketplace and this certainly raises its fair share of concerns.
On one hand, yes, it’s great news as there is more potential business to target. However, for many the bad news is that the MSP/VMS model is purely a numbers game, which prevents a full understanding of client needs and expectations and ultimately the ability to deliver top talent in a timely manner. However, you need to consider why businesses are embracing the MSP/VMS model for recruiting their contingent workplace in the first place and it’s not all about cost. Indeed, one of the key benefits is it allows them to work with multiple staffing vendors who can provide the large numbers of diverse staff they require, without having to manage multiple individual relationships. Having one contact for them improves their efficiency and consistency.
So staffing firms have to face the reality that the MSP/VMS benefits their clients and by positively embracing this, staffing firms have the opportunity to acquire new business, build strong relationships and thrive, even with lower quality VMS accounts.
However, we are not naive; it’s certainly not an easy business option, it is all about managing the MSP/VMS business model effectively.
So how can you do this?
It’s clear that placing your top and most experienced recruiters will not be viable as margins are slim and it is a total waste of their skills and will result in a high turnover of demotivated recruiters. However, by using inexperienced junior recruiters, often fresh out of college, you can only really make matches on paper, rather than selecting candidates who can do the job. Whilst this will make you quick, you are risking scoring low in performance measures and the possibility of being replaced if your scores become too low.
Therefore it is necessary to find a way for you to manage working the MSP/VMS business model effectively whilst achieving your business goals and provide a great and effective service to your clients. This is why so many staffing firms turn to building a relationship with an Offshore Recruitment Partner (ORS), such as IMS People Possible, to allow their business to not only survive but indeed flourish as they gain an advantage in the MSP/VMS marketplace.
The right ORS partner will offer dedicated VMS support to your recruiters, allowing them to focus on their core activities and sales. Your partnership with your ORS partner enables you to become a preferred VMS partner to your clients and still make the necessary margins.
They provide dedicated recruiters experienced with VMS systems, who can manage your VMS process in full or part, via shared access to your VMS if you desire.
The support is provided around the clock 24/7, at a cost lower than that of hiring a recruiter inhouse. This ensures you can deliver quality candidates fast and 24/7. The robust account management and quality control standards guarantee that you are always able to meet, and hopefully exceed, your client’s expectation.
Working with an ORS partner simply reduces risk and as you are working with dedicated experts in their field, you are always safe in the knowledge that you can optimise your client delivery whilst remaining in complete control, with the flexibility to scale the resource rapidly, with minimal disruption or cost, according to business needs.
For staffing firms starting a working relationship with an ORS partner truly makes perfect sense: it will develop and advance their business focus and competitiveness; they will gain a strategic advantage by securing quickly more qualified, intersted and available candidates and of course there will be the cost savings.