--- title: Is Your Staffing Agency Putting Your Company at Risk? A VMS Can Help. description: Understand staffing agency risk and what your company can do to mitigate exposure. image: https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/RISK%20IMAGES/risk%20optimized%201200%20blogs/cloud-ways-to-reduce-risk-in-contingent-workforce-staffing-with-a-vms-1200-627-36.jpg --- - [BOOK A DEMO](https://www.conexisvmssoftware.com/book-a-demo) - [TAKE A TOUR](https://www.conexisvmssoftware.com/self-guided-tour-of-conexis-vms-vendor-management-system-demo) [![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-FINAL-1.svg) ![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-V2.svg)](https://www.conexisvmssoftware.com/) [![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-V2.svg)](https://www.conexisvmssoftware.com/) - VMS 101 - - [What is a VMS?](https://www.conexisvmssoftware.com/what-is-a-vendor-management-system-vms) - 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A VMS Can Help. [![Wayne Burgess](https://www.conexisvmssoftware.com/hs-fs/hubfs/Wayne100.png?width=30&height=30&name=Wayne100.png) Wayne Burgess](https://www.conexisvmssoftware.com/blog/author/wayne-burgess) - - - As the number of contingent workers continues to grow, staffing agencies are increasingly responsible for the staffing needs for many companies. But is your Staffing Agency putting your company at risk?  In this article, we’ll share questions to identify staffing agency risk and what you can do about it.  The right staffing agency can provide your business with great return on investment (ROI).  However, on the other hand, partnering with the wrong agency and managing them unsuccessfully can expose your company to hidden risk, resulting in rogue spend and poor workforce quality.  ## Benefits of Staffing Agencies There are a number of significant benefits why businesses turn to staffing and recruiting firms; some of which include: - To access a wider range of talent, including candidates with specialized or scarce skills (particularly important during the “skills shortage”) - To adjust their workforce to meet changing business demands (such as a one off project or seasonal demands) - To gauge employee culture fit before hiring - To fill positions quickly ## Is your Staffing Agency putting your company at risk?  Ask yourself these questions to assess the risk and what you can do about it: ### **Q1: Are you managing your staffing agency properly? ** One of the most common causes for risk when using staffing agencies isn’t actually the vendors themselves, it’s [how you manage those staffing vendors](https://info.conexis.io/en-ca/en-ca/en-ca/contingent-workforce-vendor-management-guide). Unfortunately, the vast majority of companies with a contingent workforce (especially those with smaller non-employee workforce budgets) are managing their staffing agencies on manual spreadsheets.  These time-consuming methods of managing your staffing vendors lead to human error and fragmented management processes across your organization, meaning hiring managers are left paying rates outside of your company’s standardized vendor agreements.  That results in absolutely no visibility or control over your externally-sourced workforce, with hidden costs and poor workforce choice significantly impacting your company’s bottom line and workforce quality. **The solution**: [A](https://www.conexisvmssoftware.com/what-is-a-vms) [Vendor Management System (VMS) ](https://www.conexisvmssoftware.com/what-is-a-vendor-management-system-vms)will centralize and automate all of the processes associated with managing your staffing agencies. By consolidating all vendor data into one company-wide platform, your business will have complete visibility and control over how it manages and engages its staffing agencies. ### **Q2: Does the staffing agency lack experience in your industry?** There’s a reason why the best staffing agencies specialize in specific industries, so they can get the best results for both the companies and workers they work with. Only a few of the huge staffing agencies have the resources to specialize in all industries.  A staffing agency that doesn’t have the expertise in your industry will lack the understanding needed to fulfill your workforce targets. On top of that, their pool of talented workers in your industry will be far smaller than that of a staging agency which does specialize in your industry. ***The solution**: Work with a staffing agency that’s experienced in your industry. Ask for referrals and case studies so you can see first-hand how the staffing agency has helped businesses in a similar position to yours. * ### **Q3: Is the staffing agency charging you too low of a billing rate?** Staffing agencies have two rates. Pay rate is the amount of money that the staffing agency is paying the contingent worker and the mark-up is the additional cost they are adding for their services. Combined, these rates are the [staffing agency’s “bill rate”](https://blog.conexis.io/staffing-agency-bill-rate-what-is-it). At first, it may seem like a great deal that’s saving your company money if your staffing agency is charging you a low bill rate. In reality, a staffing agency that charges a low bill rate is probably cutting corners - and that’s going to affect the quality of your workforce. Suppliers which charge a low bill rate typically cut the workers pay rate, and that leads to substandard quality.  ***The solution**: A staffing agency that’s willing to negotiate and significantly reduce their bill rate is likely to place poor temps into your business, but, at the same time, overpaying for contingent workers can affect how profitable your business is. You need to find the right balance between saving money and sourcing high-quality workers.*  ### **Q4: Is the staffing agencies following local labor laws?** Staffing agencies that employ workers on behalf of your organization must comply with your company’s local regulations and laws. Misclassifying workers when lawmakers may see them as employees could have some serious consequences for your business.  ***The solution**: Using your vendor management system, conduct regular audits on your contingent workforce to ensure every worker is labelled appropriately. Ensuring you capture and manage all info surrounding your workers and your staffing agencies, you’ll be able to significantly mitigate the risk of misclassifying your contract and temp workers.* ## Learn more about the Benefits of a VMS - Free Guide [![Everything you need to know about Vendor Management Systems](https://no-cache.hubspot.com/cta/default/7617376/9ad5634f-c8fc-44d7-ac23-49cded1aacec.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/9ad5634f-c8fc-44d7-ac23-49cded1aacec) ## Additional Reading [Managing Staffing Agencies with a VMS | Everything You Need to Know](https://www.conexisvmssoftware.com/managing-staffing-agencies-with-a-vms-guide) - [Co-Employment Risk: How a VMS Shields You from Risk](https://www.conexisvmssoftware.com/blog/what-is-co-employment-risk-vms) - [Misclassification: A Critical Risk for Contingent Workforce Programs](https://www.conexisvmssoftware.com/blog/what-is-a-contingent-worker-misclassification) - [How to Identify the Hidden Risks in Your Contingent Workforce Program](https://www.conexisvmssoftware.com/blog/identifying-the-hidden-risks-in-your-contingent-workforce-program) - [How to Track Contingent Workforce Compliance Risk with a VMS](https://www.conexisvmssoftware.com/blog/how-to-track-contingent-workforce-compliance-with-a-vms-system) - [How a VMS Reduces Contingent Workforce Risk (Guide](https://www.conexisvmssoftware.com/vendor-management-system-risk-reduction)) ## The Conexis VMS Difference Conexis VMS is an [award-winning](https://www.conexisvmssoftware.com/conexis-vms-awards-and-recognition) vendor management system built for organizations that want the power of enterprise software without the complexity or cost. Leveraging the latest technology, Conexis VMS delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored, personal service you require. Learn more about our [Company](https://www.conexisvmssoftware.com/company) and what makes [Conexis VMS different](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis). ## Discover the Power of Conexis VMS Conexis VMS is trusted by staffing agencies, MSPs and leading organizations to modernize and manage their contingent workforce programs. Here's why organizations choose Conexis VMS: - [Modern VMS Technology](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis) - Built on the latest AWS microservices architecture and Open API - [Fast Implementation](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months) - Get up and running in under a month, free setup and training included - [Fully Branded White-Label VMS](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) - Your Logo. Your Domain. Your Branded Communication - [Flexible Pricing](https://www.conexisvmssoftware.com/pricing) - No setup fees, with free implementation, training and account management - [Personal Attention](https://www.conexisvmssoftware.com/vms-nps-customer-satisfaction-adoption) - Experienced senior account management from implementation onward ## Switching Your VMS or Just Getting Started? We work with teams at every stage, from first-time buyers to companies replacing outdated platforms that can't keep up. Either way, we'll show you what a modern VMS looks like, up and running in under 30 days. | [![Take a self-guided tour of Conexis VMS ](https://no-cache.hubspot.com/cta/default/7617376/6617fad0-9168-4a45-b474-c96a34628641.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/6617fad0-9168-4a45-b474-c96a34628641) | [![Book a private consultation with Conexis VMS](https://no-cache.hubspot.com/cta/default/7617376/838fcdf1-1e6b-4f38-94ca-546b5c3f500a.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/838fcdf1-1e6b-4f38-94ca-546b5c3f500a) | [![Book a Demo with Conexis VMS](https://no-cache.hubspot.com/cta/default/7617376/18db2c62-a34a-4454-8010-c1bfc7f5e559.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/18db2c62-a34a-4454-8010-c1bfc7f5e559) | | --- | --- | --- |    [![VMS Risk | Compliance](https://no-cache.hubspot.com/cta/default/7617376/8142be4d-0aaf-42ec-99f1-6a4623e8ca15.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/8142be4d-0aaf-42ec-99f1-6a4623e8ca15) ![Wayne Burgess](https://www.conexisvmssoftware.com/hubfs/Wayne100.png) #### Wayne Burgess Wayne Burgess is the Co-Founder of Conexis VMS, a technology company focused on helping organizations get control of their Contingent Workforce. ### Popular posts ![How Do They Do It? How Conexis Delivers Fast VMS Open API Integrations](https://www.conexisvmssoftware.com/hubfs/how%20do%20they%20do%20it-Conexis-VMS-Open%20api_%201200x627-44.jpg) ## [How Do They Do It? How Conexis Delivers Fast VMS Open API Integrations](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-vms-open-apis-make-vms-integration-fast) [![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-vms-open-apis-make-vms-integration-fast) 17 September 2026 ![How Do They Do It? How Conexis VMS Delivers a White-Label VMS](https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/HOW%20DO%20THEY%20DO%20IT%20OPTIMIZED%201200/conexis-vms-white-label-vms-1200-627-60.jpg) ## [How Do They Do It? How Conexis VMS Delivers a White-Label VMS](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) [![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) 24 June 2026 ![How Do They Do It? How Conexis VMS Can Launch in Under 30 Days](https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/HOW%20DO%20THEY%20DO%20IT%20OPTIMIZED%201200/conexis-vms-implementation-1200-627-59.jpg) ## [How Do They Do It? How Conexis VMS Can Launch in Under 30 Days](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months) [![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months) 1 June 2026 ### Subscribe to the Conexis Monthly Newsletter ![Conexis Logo - White](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square-White-V2.svg "Conexis Logo - White") [![Conexis VMS Reviews](https://www.conexisvmssoftware.com/hubfs/www.conexisvmssoftware.png)](https://sourceforge.net/software/product/Conexis-VMS/) - [VMS BENEFITS](https://www.conexisvmssoftware.com/benefits-of-vendor-management-system) - [PRICING](https://www.conexisvmssoftware.com/pricing) - [COMPANY](https://www.conexisvmssoftware.com/company) - [CONTACT](https://www.conexisvmssoftware.com/contact) - [CONEXIS VMS](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis) - [LEARN](https://www.conexisvmssoftware.com/vms-vendor-management-system-resources) - [TAKE A TOUR](https://www.conexisvmssoftware.com/self-guided-tour-of-conexis-vms-vendor-management-system-demo) - [BOOK A DEMO](https://www.conexisvmssoftware.com/book-a-demo) ![icon-map-marker](https://www.conexisvmssoftware.com/hubfs/6M%20Files/icon-map-marker.svg)**USA** 350 S NW Highway, Suite 300 Park Ridge, IL 60068 ![icon-map-marker](https://www.conexisvmssoftware.com/hubfs/6M%20Files/icon-map-marker.svg)**Canada** 100 King Street West, Suite 5600 Toronto, ON, M5X 1C9 ![phone-icon](https://www.conexisvmssoftware.com/hubfs/2021/Images/icon-phone.svg)[(312) 776-2006](tel:13127762006) ![SIA\_Corporate Member Logo](https://www.conexisvmssoftware.com/hs-fs/hubfs/SIA_CM_Member_2018%20copy.jpg?width=300&height=74&name=SIA_CM_Member_2018%20copy.jpg)   Copyright © 2026 Conexis VMS - All Rights Reserved. | [Privacy Policy](https://www.conexisvmssoftware.com/privacy-policy) ```json { "@context" : "http://schema.org/", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Wayne Burgess" }, "dateModified" : "2026-09-21T10:02:14 PM", "datePublished" : "2021-08-03 19:37:40", "description" : "Understand staffing agency risk and what your company can do to mitigate exposure. 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