When Should I use a Neutral Vendor Managed Service?
When... You have large temporary requirements You’re looking to take on new interim projects You require centralised invoicing You have a high agency spend
It’s no secret that the Temporary Recruitment needs of a Company change on a monthly, weekly and even daily basis. Because of this, a lot of Companies suffer from being short-staffed at times when they really can’t afford to be.
There are different approaches to satisfying your Temporary Recruitment needs, and a Neutral Vendor Managed Service model is one of them.
We’ve previously told you exactly what this model is, and what the benefits of using this model are. However, what we haven’t told you is when you should look at implementing it.
When you have large Temporary Recruitment requirements, but not a big enough HR team
A lot of HR teams take on the responsibility of recruiting for their business. However, this isn’t always the best, most efficient approach.
If your HR team isn’t big enough to cope with the sheer volume of Temporary staff that you require, you may find yourself needing to look outside of your organisation. A Neutral Vendor Managed Service model is designed to cope with any volume of Temporary workers that you require, meaning that you’re never short-staffed.
When you’re looking to take on new projects on an interim basis
Taking on new projects on an interim basis can massively increase your need for Temporary staffing. If you don’t have the capacity to recruit the volume that you require, you may find yourself struggling to meet deadlines for your projects.
Outsourcing to a Neutral Vendor Managed Service provider ensures that you don’t have to worry about whether or not you’ll have enough Temporary staff – this is all dealt with for you.
When you’re using individual suppliers and require centralised invoicing
Each individual supplier that you use will be sending you their own individual invoice. Because of this, a lot of Finance departments suffer. Every day, there is a new invoice coming in from a different agency for the same role as you received them for yesterday.
A Neutral Vendor Provider centralises all of your invoicing, so that’s it’s easy for you to keep track of your temporary recruitment spend. One consolidated invoice = a happy Finance team.
When you have a high Agency spend
Because of the nature of agency competition, your Neutral Vendor Provider has the ability to negotiate the most competitive rates with all agencies on your Preferred Suppliers List (PSL).
Whilst you will still be spending some of your budget on agencies to supply your temporary workers, your Provider will assume the role of the middle-man and negotiate cheaper rates for the same high-quality workers.
There are many situations where you may consider using a Neutral Vendor Provider – the above are what we’ve found to be the most common.
Cheaper rates, combined with centralised invoicing, means it’s easier for you to keep track of all of your agency spend. This, in turn, helps you to monetize the benefits of using a Neutral Vendor Provider.
Using a Neutral Vendor Provider not only helps you to fill all of your temporary vacancies quicker and cheaper than other methods – they also make it easier to keep track of your finances.