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How Staffing Firms Can Boost ROI with Strategic VMS Support

As adoption of vendor managed programs (and use of VMS platforms) has grown, staffing firms are faced with increased competition and the challenges of serving VMS clients, profitably. Frustrating as this high volume, low margin work may be (for those of us who remember the “good old days” of relationship-based staffing), the rewards of a VMS client are still notable. So how does a smart, competitive staffing firm maximize margin and productivity from VMS client staffing? Read on.


Challenges of VMS Staffing

The challenges of staffing for a VMS client primarily stem from one key factor: the system limits the contact between the hiring manager and account manager. With this diminished relationship, the account manager and recruitment team end up with less information to work with in regards to the intangible qualities of the open position, work environment and company culture.

This limited communication can result in mismatches between potential candidates and the client company. Consequently, this lower quality of candidate can lead to a reduced ratio of submission-to-hire, lower margins, and a poor scorecard performance. These challenges are then compounded by another frequent concern: hiring and training recruiters who are actually willing to work within VMS parameters.

If these challenges seem too numerous and troublesome to surmount, you’ll be relieved to hear that there is a solution.


How VMS Recruiting Support Can Help

A VMS support partner brings together expertise in the unique demands of a VMS client, and the economic advantages of offshore recruiting support. This is a support team that knows VMS processes inside & out, and is able to scale efforts as req volume increases. This is key to maximizing efficiency and achieving positive ROI.

By using remote recruiters trained specifically on VMS recruiting, you can ensure improved turnaround time and optimized workflow processes – a combination that ensures a quality of candidate that aligns with your firm.

Ultimately, a support team allows you to improve metrics and scorecard performance in order to achieve preferred vendor status.


Strategies for further increasing ROI

That said, VMS support isn’t a magic solution. It takes setting some very specific, long-term goals to effectively integrate a support team.

For example, it can be tempting to cherry-pick positions to send to your VMS support team, but we’ve found that this is actually counterproductive. Instead, send all positions to the team, allowing them to sort and source candidates accordingly.

Another valuable practice is reevaluating the compensation structure of the recruitment team that works directly with your VMS support team. Incentivizing their VMS efforts in order to increase their productivity, efficiency, and, of course, motivation, is an excellent strategy to help overcome the potential strategy of attracting and retaining recruiters who are willing to work with VMS.

If you’re interested in learning more about VMS support, just let us know. We’d love to help.