VMS, or vendor management system, is a term that’s been used in technology for decades, but it can also apply to a variety of other industries, including staffing. Many companies are still hesitant to consider VMS for recruitment. What exactly is a VMS, and what kinds of opportunities could you be leaving on the table if you don’t embrace the concept for your business?
Small Business VMS
Many people wrongly assume that VMS is just for larger companies and staffing agencies, but that’s not true. Mid-size and small companies can still effectively use VMS to help them with their hiring processes. However, the revenue for companies that use VMS is expected to continue increasing throughout 2020, even with the looming pandemic. In fact, with the changes in the way we have to do business day to day, VMS may prove to be the most valuable tool.
Challenges and Concerns about VMS
But working through a VMS for staffing isn’t always a walk in the park. There are challenges involved, including the perception that business through a VMS has historically low margins. However, one of the biggest concerns for recruiters is that VMS doesn’t give them enough contact with the hiring managers. This can evolve, however, as more companies embrace the use of VMS for hiring.
One way to embrace VMS is to allow technology to do the work. There have been so many advancements in technology, and specifically automation, that can make a VMS very efficient for staffing. The more automation that can be done, the better the outcomes and fill rates for both agencies and clients.
Less Competition on the Market
It‘s true that even today, fewer agencies are doing VMS staffing, which means there is less competition on the market. That’s good for both the agencies and the companies relying on VMS based staffing solutions to help them fill their staffing needs, whether that’s contingency, on-demand, or other placement opportunities.
Is a VMS Right for You?
Anserteam Workforce Alliance represents North America’s very best staffing agencies aligned together to deliver world-class workforce management solutions. We offer end-to-end talent services that can be customized for any size business, utilizing our Managed Services Provider (MSP) model and Vendor Management Solutions (VMS) technology. Is your organization seeking a WBENC-certified diversity partner to provide measurable results and substantial cost savings? Contact us today.