CWS 3.0: February 22, 2011 - Vol. 3.5


Behind the News: New Alliances

New Alliances


As the economy picks up, companies are looking for qualified workers to fill roles.

Many firms made deep cuts during the recession and in some case are simply looking to re-staff. Given the economies of using contingent labor, companies are filing those roles with temporary workers.

Getting the right contingent talent means relying on your pool of suppliers. Results of Staffing Industry Analysts 2010 Buyers Survey reveal that more and more companies are interested in trying new suppliers. In fact, the number of clients willing to do so went up to 26 percent in 2010 from 20 percent in 2007. Further, 46 percent of respondents said they would be willing to try new vendors over the next two years.

There are a number of reasons why. It’s a brave new world and what worked in 2008 as far as workforce patterns has changed. Companies are looking for a different mix of workers and skill sets.

Further, procurement contracts usually run in three-year cycles. Many of the contracts are up for renewal. As a result, end users of contingent labor are willing to try different options and that’s where new suppliers come in. The growth of the VMS has also contributed to this. Here’s why.

With the advent of the VMS and automation, companies no longer have to deal directly with their staffing suppliers. The VMS is the go-between the two parties. As Bryan Peña, vice president contingent workforce strategies and research at SIA, says, “It’s no longer about the relationship. It’s about what the supplier can do for me.” VMS may have given companies more options, but Peña warns not to rely on the tool as a filter. “If you are looking for more suppliers, look into the fundamentals of why,” he says.

Sometimes if you are having a problem with a supplier, it’s easier to switch to a new vendor. Make sure when you are looking for new suppliers, it’s for the right reasons. Hoping that a new supplier will resolve your previous problems is not the right motive.




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