When it comes to implementing a successful contingent workforce program that drives improved ROI and helps build a high-quality workforce, the use of staffing agencies is absolutely crucial.
Staffing agencies help an organization to save money and access specialized expertise that would be almost impossible to hire directly. Staffing agencies help businesses to engage contractors in short notice, allowing for easy access to hot skills, seamless scalability, reduced costs and the ability to fulfill workforce requirements.
Yet these benefits cannot be realized when a company doesn’t successfully manage its staffing agencies.
With that in mind, we’ve created this guide to help your business improve how it manages its staffing agencies. We will explain why staffing vendor performance management is so important, and what you can do to ensure your contingent workforce program is helping your organization achieve its business goals.
What is vendor performance management in the staffing industry?
Vendor performance management when it comes to your contingent workforce program is the practice of measuring, analyzing and managing the performance of staffing agencies to ensure your business has the visibility it needs to cut costs, minimize supplier risk and drive continuous program improvement.
Successful vendor performance management will give your business insight into how staffing agencies are performing, enabling your organization to understand whether your staffing agencies are helping you meet your workforce requirements, and, if not, what needs to be improved.
There are intangible costs to manually managing your staffing vendors
While businesses with higher contingent workforce volumes typically use a managed service provider or vendor management system (VMS) to manage their contingent workforce program processes, companies with lower contingent workforce volumes have typically done this manually.
But managing your staffing agencies manually is tedious, time consuming, costly and increases your company’s overall risk.
When you manually manage your staffing agencies on spreadsheets and in-house databases, it becomes incredibly easy to lose track of service level agreements, measure vendor performance metrics or hold your staffing agencies accountable.
This lack of visibility leads to poor contingent workforce program decision making, hidden costs that run rampant throughout your program and a complete lack of insight into how your staffing agencies are performing.
How a vendor management system mitigates those risks
To move away from the overwhelming and chaotic nature of manually managing staffing agencies, internal teams responsible for their contingent workforce program should implement a vendor management system to automate and centralize their processes.
A VMS is a piece of technology that allows businesses to manage the entire staffing agency process on a centralized, automated platform. The use of a vendor management system allows businesses to adopt a company wide strategy to tracking, measuring and managing vendor performance.
With the use of a vendor management system, your business will:
- Gain improved visibility into its contingent workforce and staffing agency performance.
- Make continuous improvements that reduce costs and improve workforce quality.
- Minimize supplier risk within your contingent workforce program.
- Automate staffing agency management processes, freeing up your team to focus on core, revenue-driving tasks.
- Access recruiting metrics that give you insight into how staffing agencies are performing.
The top recruiting metrics to measure staffing vendor performance
Key performance indicators (KPIs) are a crucial component when it comes to successful staffing vendor performance management. With the use of a vendor management system you will receive reporting functionality that will provide unique visibility into vendor performance.
Some key submissions to track when it comes to your staffing agencies include:
- Submissions to positions
- Submissions to interview
- Submissions to hire
- Time-to-submit
- Time-to-fill
- Interviews to hire
- Assignment completion (or turnover)
These KPIs will give your business the metrics it needs to measure each staffing agency's responsiveness, whether they are able to source the appropriate number of candidates, whether they are able to source the appropriate quality of candidates, and whether they source reliable hires who complete their assignments.
Interested in learning more about Vendor Management Solutions?
Whether you are looking for a new VMS Solution, or just getting started, we are here to help. See how easy Conexis is to use by taking a quick 2 minute Self-Guided Tour. Contact Us for a Free No-Obligation Consultation to discuss your workforce challenges (and get immediate actionable insights) or Book a Personal Demo Today!
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