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Staffing firms largely dissatisfied with VMS, report says

November 22, 2016

Staffing firms are largely dissatisfied with vendor management systems, according to research released by Bullhorn and Inavero.

Three-quarters of the survey participants, 76%, receive orders and submit candidates through a VMS and VMS represented more than 30% of revenue for firms participating in the survey. However, more than half of the respondents are extremely dissatisfied, 15%, or somewhat dissatisfied, 40%, with submitting candidates through a VMS. Only 4% of respondents indicated they are extremely satisfied, leaving a big muddled middle of lukewarm participants, Bullhorn reported.

Many of the biggest factors in the dissatisfaction are related to time, according to the research. Staffing firms with automated VMS workflows reported greater efficiency, faster speed and higher numbers of candidate submissions and fill rates. Highlights include up to 55% more interviews in a month and 33% higher fill rates. Respondents who automated five to six steps had nearly double the satisfaction rate as respondents who automated one to two steps.

The survey found the top three most frustrating aspects of VMS are:

  1. The ability to ask hiring managers clarifying job order-related questions: 62%
  2. The metrics VMS programs use to judge your performance: 53%
  3. The time spent submitting candidates for an open order through a VMS: 46%

Respondents reported the highest VMS priority is increasing the percentage of orders filled. The next four top VMS goals come in a distant second, but are fairly similar to each other in rankings of emphasis:

  1. Increase the percentage of orders we’re able to fill: 56%
  2. Improve our margins on the job orders we fill through VMS: 25%
  3. Increase our speed at filling VMS job orders: 23%
  4. Improve our submit-to-interview ratio: 23%
  5. Increase the total number of orders we receive and service: 22%

“The most efficient VMS models will come about through three forces coming together — better technology to remove busy work, improved organizational structures to be more efficient in communications, and, ideally, collaboration and transparency from the clients.” said Jonathan Novich, Bullhorn’s VP of platform and staffing technologies.

The online survey included 608 staffing firm employees using vendor management systems. It was conducted from April 13 to April 21, 2016.