SI Review: July/August 2014

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You Ask/We Answer: What do staffing buyers think about VMS?

Question: Staffing firms’ concerns with vendor management systems are well-known. Although some VMS relationships work well, many come with frustrations. Some say aggressive use of VMS might bring lower-quality candidates to buyers as recruiters concentrate on higher-margin business.

But what do staffing buyers think about VMS? Have their opinions changed as of late?

Answer: The short answer: They like it.

A recent Staffing Industry Analysts’ survey asked buyers: “Looking back what would you say is the single best strategic or tactical decision your organization ever made with respect  to contingent labor, and why?” The second most-popular response was “implementing a VMS” — just below the No. 1 answer “implementing an MSP.” Both responses were far and away more popular than the third most-cited decision.

It seems buyers like the reduced cost, ease of use and metrics of a VMS.

This might be a bitter pill to swallow for some. However, some industry experts say it is possible to thrive while keeping VMS business to a minimum. For more, see our story in this issue.

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