The end of the year means it’s time for staffing firms to start planning for 2024. And one crucial question that often arises during this phase is whether it’s the right time to adopt or do business with a vendor management system (VMS). Or, if you already have one in place, are you truly harnessing its full potential? While the prospect of attracting new customer accounts is enticing, there are also barriers that make staffing firm leaders hesitate.
In my role, I manage a team that helps staffing owners with VMS management and adoption every day. In this article, the first of two parts, I will discuss the lesser-known benefits of incorporating a VMS into your business strategy — something I’ve seen firsthand in my work. Let’s get into it!
The VMS Advantage
Vendor management systems, often seen as the bridge between staffing firms and their clients, have been instrumental in generating new business, streamlining operations and improving compliance in the staffing industry. Beyond these well-known advantages, there are several hidden gems that make working with a VMS an invaluable asset in your 2024 business planning.
Data-driven decision making. Having access to real-time analytics and performance metrics is crucial in today’s digital world. VMS platforms offer comprehensive data insights that can empower staffing firms to make informed decisions. Leveraging this data can give you a competitive edge by staying ahead of market trends and client needs.
Enhanced cost control. Whether you are implementing a VMS system or thinking about doing business with a customer that uses one, there will be an initial cost involved. However, long-term it can lead to cost savings and revenue opportunities. By automating time-consuming administrative tasks, minimizing errors and reducing the risk of non-compliance, staffing firms can trim operational expenses and allocate resources more efficiently. Plus, you get increased revenue from otherwise missed opportunities.
Streamlined client onboarding. Winning new clients is a top priority for staffing firms, and a well-implemented VMS can make the onboarding process more efficient. With standardized workflows, automated document management, and customizable reporting, you can speak knowledgeably to and demonstrate professionalism and reliability to your clients from day one.
Improved candidate experience. Happy candidates are more likely to stay engaged with your firm and refer others. VMS platforms can help you provide a seamless candidate experience by simplifying the application process, offering real-time communication, and ensuring timely payments. This can lead to better candidate retention and a positive reputation in the industry. There are many platforms that can integrate with your current payroll platform, making it better for the candidate and internal staff.
In the next part of this article, I’ll provide best practices to overcome the challenges of VMS adoption and management.