Different Vendor Models Found within MSP Programs
Today, a wide variety of businesses are increasing their use of temporary workers, independent contractors, seasonal employees and other forms of contingent or contract labor.
Does your company utilize a contingent/contract workforce to fill open positions?
If so, there is likely an expansive list of vendors your hiring managers work with to find the best people for the available job. Below we explain a couple of different vendor models.
Tiered Vendor Networks
Some organizations utilize tiered vendor networks, which segment the staffing vendors into several tiers in a specific order–usually based on preferences such as diversity, location, skill, etc. Hiring managers in this model may choose to work with any vendor that is labeled Tier One status. There are many variables in how a company organizes the tiered vendor program, such as diversity, geographical presence, skill, etc. The staffing companies will have a certain amount of time to produce results on the open position. If they are unable to fill the position with adequate candidates in a timely fashion, the manager may choose to move forward and work with Tier Two staffing vendors and so on until they can fill the position. Managing these different tiers can be overwhelming and it can certainly take much longer to fill a position.
Open Vendor Network
The open vendor network is usually made up of an expansive database filled with thousands of staffing vendors. Managers can submit their open position to all of those staffing vendors at once and as a result, receive a number of qualified and non-qualified candidates. With an open vendor network, managers can receive many responses to their open position quickly; however, it places a heavy administrative burden on the hiring authorities to sift through all of the qualified and non-qualified candidates that have been submitted.
The most effective way for hiring managers to fill open positions with quality candidates in the most efficient and expeditious manner possible is to implement a vendor-neutral Managed Service Provider (MSP) Program. The MSP will manage the vendor relationships and facilitate the hiring process to ensure speed, quality, transparency and competition are of highest priority. An MSP should take on the primary responsibility of managing all aspects of a company’s contingent workforce program. At Knowledge Services, we significantly increase governance for our clients by way of compliance, vendor management and maintaining transparency through our reporting and recommendations to improve efficiency with our streamlined talent acquisition processes.
To learn more about the successful vendor model used by an MSP, contact us today!