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A Better Way to Engage Staffing Agencies for Your Contingent Workforce Program

 

Due to evolving workforce trends, digital transformation, and recent coronavirus-related upheavals, businesses are turning to contingent labor more than ever before. A recent study confirms that[...]

October 06, 2020

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The Intangible Costs of Self-Managing Your Staffing Vendors

Manually managing your staffing vendors is tedious, costly, and risky. It is estimated that manual processes surrounding vendor management double the costs of businesses as opposed to automated solutions.

While businesses with high contingent labor spend typically have an MSP and/or a VMS in place to help them manage their processes, those with relatively lower spend often lack access to those same tools — pst! We now offer a no-cost solution to this, but we’ll get to that later. Time and resources are precious to everyone, and we’re tired of businesses having to do without. After all, when you self-manage your staffing suppliers, there are many intangible costs when it comes to missed opportunities and the extra expense of your employees’ time and effort.  Let’s explore…

The Real Costs of Manually Managing Your Contingent Workforce Program

 

When you manually manage your staffing suppliers, you sign up for tremendous amounts of legwork with little idea of their actual performance — unless you can dedicate most of someone’s job toward establishing service level agreements (SLAs), tracking related performance metrics, and then regularly holding each staffing supplier accountable. Let’s cover some of the main challenges that come with managing staffing suppliers without the help of an MSP/VMS solution.

Your team experiences overwhelm and chaos. 

Many times managing staffing vendors is a bullet point on someone’s job description rather than their full role. This means they simply don’t have the time and focus required to truly keep an eye on your staffing vendors’ performance If you’re able to hire an in-house employee dedicated to managing your contingent labor program, however, their Herculean role involves a range of activities, including:

  • Handling administrative back-office work and contractual changes 
  • Finding and setting up vendors
  • Issuing W9s
  • Handling insurance
  • Auditing payroll and handling I-9 compliance
  • Candidate coordination and interview scheduling

Not only is this seemingly endless list overwhelming and time-consuming, but its related chaos also adds risk. 

 

You lack price transparency and performance guarantee.

When you self-manage the staffing suppliers in your contingent hiring program, you’ll find that it’s nearly impossible to establish standard vendor processes and pricing, which means you use up valuable time and lose out spend transparency, diversity tracking, and general order. On its own, adding a supplier isn’t easy. You have to identify potential vendors, often while dealing with a barrage of cold calls, verify documentation to ensure everything is in order, and vet each supplier’s capability to find great candidates without concrete evidence of their current abilities. All this to end up simply hoping for the best!

Needless to say, you’re still driving blind. You can’t be sure that you’ve found the best

partner for your needs until you actually start working with them, and that’s if you have performance tracking in place as well as the bandwidth to keep track of it. 

 

You don’t have an agile response to change.

Let’s say that you’ve managed to partner with the right supplier—for now. Change is the only constant, after all, and you find that your organization needs talent in a niche your existing suppliers don’t cover. Or your most important staffing supplier’s best recruiters leave, and your once reliable partner can’t get the talent you need anymore. The truth is that any staffing supplier’s recruitment capabilities can change overnight. It’s not only inefficient, but also unrealistic to expect your team to keep an effective hawk eye, monitoring these changes and adjusting your flow of job requisitions. 

 

You are susceptible to legal and compliance risks.

Keeping track of and managing multiple vendor contracts can get complicated. Since you’re dealing with multiple vendors, your agreements with each one are likely to have inconsistencies in the contractual terms when it comes to terms and even rate variances. Very often, this results not only in confusion for your team but also an inconsistent candidate experience among your contingent workers. 

 

You don’t have a real-time measure of vendor performance.

We’ve touched on this, but maintaining an effective supply base is worth addressing separately. Not all businesses analyze their staffing vendor performance, possibly due to the lack of relevant data or resources. And when businesses do have these capabilities, they typically measure their staffing suppliers’ performance too infrequently. Every business aims to achieve a lean and cost-efficient vendor management program. With this in mind they perform analyses to identify the vendors who bring the best returns, the presence of redundancies in the supply chain and more.

But shouldn’t this be happening in real time? 

Unfortunately, many businesses with low contingent spend are stuck working this way because they don’t have access to a well-designed and hassle-free vendor management solution. 

But what if there was a transparent, cost-neutral, plug-and-play solution available for

businesses of all sizes? There is.

 

The Future is Here: Automated Staffing Vendor Management

 

Businesses of all sizes can now automate staffing vendor management which largely takes care of the challenges we’ve discussed. Crowdstaffing’s advanced technology automates a number of supplier management functions, including registering new suppliers, distributing your open jobs to the right supplier, matching jobs to relevant candidates, and tracking supplier performance.

We’ve combined the best of AI with human intelligence to create a vendor management system with a built-in hiring marketplace for a best-in-class contingent hiring experience.

 

Simplify supplier registration, onboarding, and compliance. 

With Crowdstaffing, your favorite staffing suppliers are only a URL away from joining our system. Plus, you benefit from the additional capacity and expanded reach provided by thousands of other suppliers already working in our hiring marketplace. You also won’t need to sign multiple contracts with each supplier or pay multiple invoices. Your contract with us covers every supplier in our marketplace. Additionally, Crowdstaffing can serve as the Employee of Record (EoR). Moreover, we can take care of all compliance, significantly reducing your administrative burden.

 

Hire from a diverse pool of vetted talent suppliers. 

With Crowdstaffing, you immediately have access to thousands of staffing vendors covering all of North America as well as nearly every talent niche and industry. So you don’t have to worry about adding a new supplier every time a new type of hiring requirement arises. Moreover, we’re a diverse supplier with a diverse group of staffing vendors, including large staffing agencies and savvy independent recruiters, women-owned, minority-owned, and LGBTQ+- owned businesses. Crowdstaffing can also partner with businesses to enhance and build their diversity programs. 

 

Match open positions with the best suppliers in real time.

In traditional contingent workforce programs, jobs are dispatched to the suppliers in static tiers and usually in a sequential manner. As supplier capabilities can change frequently, this practice can later result in inefficiencies and poor hiring outcomes. Crowdstaffing, on the other hand, operates on dynamic job distribution algorithms. These algorithms distribute your open positions to the most qualified talent suppliers in real-time, based on what their capabilities are today rather than historically. We examine several parameters including:

o   Relevant successful hires 

o   Recent overall success by days, weeks, and months 

o   Current bandwidth 

o   Relevant job expertise 

Our platform drives performance optimization that rewards the best performers with greater opportunity. This creates a standardized mechanism to measure and reward performance based on both quantitative and qualitative metrics, including:

o   Speed (average time-to-submit), 

o   Coverage (number of candidates submitted per job)

o   Quality (number of interviews and hires based on total submissions)

 

Enjoy the benefits of a transparent and cloud-based solution.

Crowdstaffing provides a cost-neutral, marketplace approach to pricing. Businesses can specify the fees they are willing to pay for each successful hire while leveraging the cost-competitive pricing of our ever-expanding supplier crowd. You, therefore, benefit from the entire Crowdstaffing functionality while only paying for your successful hires. To top this off, Crowdstaffing’s solution is cloud-based which means you can get started in less than 24 hours.

Crowdstaffing’s solution is cloud-based which means you can get started in less than 24 hours.

Want to learn more about how Crowdstaffing’s solution cuts costs and drives efficiency in your contingent hiring program?

Schedule a demo with us today!

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