Staffing suppliers are the driving forces of a thriving contingent workforce program, and establishing long-term relationships with high-performing suppliers leads to long-lasting program success. Expand your supplier relationships based on real-time performance metrics rather than relying on perceived performance.
Today, most businesses don’t view their talent supplier base as something to be expanded. Instead, most pursue a strategy of ‘supplier optimization’ and reduce the number of suppliers they partner with ---- after all, there are fewer headaches when managing a smaller supplier base.
Within this framework, businesses often believe that ‘optimizing’ their supplier-base and building robust relationships with a handful of suppliers leads to superior performance because those suppliers have access to a greater portion of the contingent program spend. But this strategy can compromise a business’ ability to attract and engage high-quality talent because it relies on the assumption that a supplier will give more attention to, and perform better for, businesses that give them more access to program spend. While this might be true in some cases, strong performances should create supplier relationships, not the other way around.
Like every other business, staffing-organizations also undergo dynamic market shifts. Often employees leave or move between teams depending on the organizations’ current priorities or the latest client partnerships, causing challenges for the businesses they serve. How? Let’s explore.
A survey by ASA revealed that 1 out of 4 employees leave their staffing firm every year, which means staffing organizations suffer from a high turnover rate. Corporate giants like Amazon, Microsoft, Google, and Walmart significantly contribute to this turnover rate by headhunting the top recruiters of their staffing agency partners.
If your business has a partnership with the same staffing organization, it can leave you highly disadvantaged. You’ll no longer benefit from that recruiter’s expertise (and talent pools), and you also lose the time and effort involved in building the relationship. Plus, it can take a significant amount of time for new recruiters to learn new processes and requirements. Either way, the candidate quality and the long-term success of your contingent workforce program can suffer.
Because of the dynamic nature of staffing organizations, it’s critical to evaluate your supplier-performance frequently. But most businesses evaluate vendor performance quarterly, with little to no insight into performance fluctuations. By engaging with poorly performing suppliers, you make compromises on both your candidate quality and candidate engagement. Often, subpar candidate engagement results in negative candidate experiences, damaging your business’ reputation down the road.
The best way to deal with this issue is by having a comprehensive view of your talent supplier management processes and program spend. Use that insight to invest in the right supplier relationships.
A Staffing MSP/VMS solution (Managed Service Provider/ Vendor Management System) enables you to gain visibility and control over your contingent workforce program by managing, overseeing, and continually analyzing your supplier management issues. They drastically reduce the hassles associated with supplier management by automating manual tasks and streamlining your hiring efforts.
These hiring solutions also help your business engage in direct conversations with your staffing suppliers with the help of a user-friendly Vendor Management System (VMS). Thus you can set clear expectations for reporting and establish standard performance metrics to effectively govern your supplier-base. These solutions also let you have a tighter grasp of time by efficiently managing your workflows and automatically distributing emails to the various stakeholders. Furthermore, you can also share direct feedback with your talent suppliers to better the communication, better the fit, and ultimately better the quality of your vendor-relationships.
But treating your staffing suppliers as your trusted business partners is not enough. As mentioned earlier, you need to continuously evaluate the performance of your talent suppliers to identify the right relationships to nurture. And, conventional hiring solutions don’t help you achieve this. In a traditional staffing set-up, poor supplier performance results in the dissolution of a partnership and only causes several inconveniences for businesses. Every time you add a new supplier to your contingent program, you lose time repeating the cumbersome processes of performing contractual reviews, legal reviews, insurance verifications, and drafting RFPs to evaluate supplier bids.
Instead of relying on a few suppliers and having the need to constantly onboard and offboard them based on their performance, look for solutions that harness the power of the human cloud. These solutions work by curating crowd-based networks of independent recruiters, boutique staffing agencies, and other diverse groups of staffing vendors along with their talent pools.
By using a crowd-based hiring solution, you drastically mitigate the disadvantages caused by the dynamic nature of staffing organizations. These solutions allow you to accommodate your incumbents while granting you access to a marketplace of vetted talent suppliers. They also give you the capacity to more effectively engage your incumbent suppliers in addition to evaluating and comparing their performance with the supplier-crowd.
Measuring your staffing suppliers’ performance in real-time eliminates the unnecessary risk of partnering with poorly performing suppliers. Look for marketplace-based hiring solutions that automatically match your open requisitions with the best suppliers in real-time. They achieve this by simultaneously monitoring your supply base’s current performance, bandwidth, and active talent pools.
By investing in these high-tech hiring solutions, your business establishes performance optimization where your talent needs are fulfilled by the best-performing suppliers. The result of this data-driven relationship strategy is superior talent throughout your contingent hiring program.
With this type of solution, you also gain access to their live dashboards, where you can view various metrics and KPIs (Key Performance Indicators) for supplier performance across your entire recruiting workflow. Some important metrics include:
Using live KPIs, your business stays well-informed with up-to-date information surrounding your supplier’s response to a given requisition, quality of their sourced candidates, and reliability of these candidates post-hire.
By maintaining a dynamic and agile approach to performance measurement, your contingent program benefits from the increased competition, enhanced visibility, and improved transparency brought forth by these solutions.
Crowdstaffing’s solution can manage your incumbent suppliers plus cater to your increasing talent needs using our ever-expanding hiring marketplace of vetted talent suppliers. Because we believe in the equal and fair treatment of all our suppliers, all the staffing vendors on the Crowdstaffing platform have democratized access to job requisitions and thus have a uniform ability to fulfill job placements.
With Crowdstaffing you can be sure that your business has the best possible supplier in the market to fulfill your job requisition --- thanks to our smart algorithms that automatically match the top suppliers to your listed jobs by monitoring both their performances and the talent pools they represent.
With Crowdstaffing, you can interface directly with your staffing suppliers or allow us to manage and nurture your supplier relationships. You also benefit from the extensive data we provide on your staffing suppliers to boost your strategic initiatives.
If you find this interesting, schedule a demo with us today to understand how Crowdstaffing’s solution can help your business effectively manage its supplier relationships.