Staffing & Recruiting Vendor Management System (VMS)

Vendor Management Systems (VMS) are now a common part of modern staffing. Read on to learn more about how VMS works, how to benefit from them, and how we can help manage the process.

Book a Free Consultation Contact Us

Back Office VMS Software Support

Managing and monitoring your Vendor Management System (VMS) is crucial. Our team can take on the burden and do your VMS monitoring for you, so oversights and mistakes don’t cost you in the long run.

  • VMS ‘True Up’ services for most VMS systems
  • Correction and adjustment of hours
  • Explore a pricing example with different margin scenarios
  • Best practice VMS management consulting

How Does A Vendor Management System (VMS) Work?

A VMS is a software or online application that facilitate the procurement of staffing services between end-clients and staffing vendors. Staffing agencies can view and manage open jobs and submit talent. It also allows both parties to collect requisitions, facilitate onboarding, automate transactions, store and collect hiring data, and provide reporting on metrics.

Benefits & Advantages of Using A Vendor Management System (VMS) Software

While working with a VMS can be challenging, there are definite benefits and opportunities for staffing agencies who can successfully execute.

New business opportunities

As more large companies use VMS system to fill positions, a steady supply of new business can help drive your growth.

Efficient candidate matching

With VMS as opposed to traditional staffing, everything you need to know to fill the position is available immediately, and you can use analytics and sorting to respond to job openings quickly.

Less communication gaps

Communication delays can occur at staffing firms if a client isn’t able to contact the right person. But with the help of VMS proxy or delegate features, coworkers can step in and ensure seamless communication flow.

Improved tracking and data

A VMS helps staffing agencies to track the entire candidate lifecycle down to granular levels. Analytics such as number of calls required, speed to deal, turnover rates, bottom line cost, etc., can help staffing firms improve processes.

Types and Capabilities of Vendor Management Systems

Procurement

Banking is one choice, but is it the right choice? Take control of your credit. We share why funding is the better option.

Vendor Onboarding

Support enrollment and registration of new staffing vendors in the system, including access and permissions.

Performance Management

Monitors and evaluates vendor performance in quality and reliability.

SLA Management

Describes and outlines the level of service agreed upon by the staffing vendor

Financial Controls & Compliance

Enables you to set up spending limits and budgets to reduce compliance risk related to vendors.

Relationship Management

Ensures effective client-supplier relationships for mutual benefit.

Contract Management

Manages the lifecycle of a contract including renewal period, amendments, and termination.

Staffing VMS Software Resources

Explore Resources

Risk carefully, grow purposefully and — recruit and staff resourcefully with Advance Partners — fully committed to your forward momentum of your staffing & recruitment company.

Book a Free Consult Explore Our Client Work

Frequently Asked Questions

A vendor management system or VMS is a web or software application that helps companies find, engage, and manage contingent and contract labor. Staffing agencies can compete for job listings.

A managed service provider or MSP is a third-party business that manages the temporary work procurement for companies. Many MSPs use VMS systems to manage this, so the terms often go together.

VMS and MSPs sometimes have a negative connotation in staffing stemming from challenges like lower profit margins, lack of personal connection, stiff competition for jobs based on price, and hiring challenges.

Some best practices for managing a VMS would be to hire a dedicated VMS recruiter (or several), compare time weekly to see if the system matches what you know to be true, review all rejected time immediately, make sure all entered rates are correct, account for fees and discounts, have a central mailbox for communications, and upload all documentation before a new hire starts.

Staffing agencies utilize vendor management systems (VMS) to streamline the process of managing client relationships, candidate placements, and billing. These systems automate tasks such as candidate sourcing, timesheet tracking, and invoice generation, enhancing efficiency and transparency in staffing operations.

Choosing a Vendor Management System (VMS) for staffing involves several key
considerations to ensure the system aligns with your business needs:

  • Functionality: Assess whether the VMS provides comprehensive features
    such as order distribution, consolidated billing, and detailed reporting.
  • Usability: Consider the user experience. The VMS should be intuitive and
    easy to navigate for all users, including your recruiters, clients, and
    contractors.
  • Integration: Ensure the VMS can integrate seamlessly with your existing software platforms, including your CRM and payroll systems, to streamline workflows.
  • Support and Security: Check the level of customer support offered and thesystem’s security features to protect sensitive data.
  • Cost: Evaluate the cost relative to the features and benefits. Determine ifthe investment aligns with your operational budget and businessobjectives.