Master Vendors can bring huge value to a client’s staffing programme. In dealing with just one centralised supplier, communication is expected to be simplified, vacancy-to-hire accelerated, and operations streamlined.
With the right internal structure and tools, a Master Vendor can offer clients a high-quality value proposition by being both sole supplier and MSP. However, this also introduces a heavy responsibility which, if not managed correctly, can damage client relationships and industry reputation.
In the fiercely competitive market, MSPs are battling it out for bigger clients and larger-scale contracts. With the pressures of sourcing high-volume workforces as well as managing HR functions, siloed, outdated and manual workflows simply aren’t an option.
For this reason, more Master Vendors are tuning to VMS. An up-to-date VMS can streamline and centralise processes, providing essential visibility and efficiency. This enables Master Vend MSPs to maintain a high-quality service and confidently compete.
So, what areas can a VMS assist a Master Vendor in?
Accountability
As sole supplier as well as HR function, Master Vendors are expected to have detailed insight into the vacancy-to-paid pipeline. Due to this, many clients expect regular reporting, allowing them to track progress.
Siloed, multisystem tech stacks make this an arduous task. They often require manual data extraction from each individual source, which then has to be re-entered into reporting documents. This makes human error inevitable, and the time it takes often makes data obsolete by the time it reaches clients.
With the right VMS, however, it can become a seamless task. With a single log-in on the cloud, all data is accessible in a single online environment. The cloud allows real-time updates and large-scale storage, meaning any data can be backtracked from months back right up to the minute. With DaaS functions, any data sets can be instantly extracted and converted into CSV, providing clients with accurate and timely reports.
Compliance
As the sole intermediary between end hirer and temp labour, Master Vend MSPs have a huge responsibility regarding compliance. With end hirers usually first in the firing line of liability, risk management cannot be compromised.
Combining multiple manual systems lowers visibility and allows risks to multiply within blind spots. Often, risks are obscured by missing or incorrect details, which are harder to spot until it’s too late.
With a cloud-based VMS, Master Vend MSPs have full visibility. All relevant parties have on-demand access to the same online database, meaning risks can be identified and solved sooner.
An optimal VMS will have legislation-specific functions, providing helpful prompts and guides, further strengthening compliance.
Some even integrate with KYC (Know Your Customer) systems, especially useful for RTW (Right to Work) ID checks. Whilst visual ID checking remains compulsory, utilising KYC alongside this adds a powerful protective layer. Many have AI, machine learning and automated abilities, allowing detection of non-visual indications of a counterfeit ID.
The stakes for RTW compliance are especially high for clients. Post-Brexit reforms, end hirers could face a £20,000 fine per illegal worker, details being published by immigration (as a warning to potential clients) or a 5-year jail sentence. This makes such functions vital additions to your value proposition and can make you stand out against competitors.
Quicker Vacancy-to-hire
One of the main appeals of a Master Vendor is that they have a large, already vetted pool of high-quality workers. Clients often take on their services with this in mind, expecting vacancies to be filled much quicker than other traditional recruitment alternatives.
Whist quality temp workers may be readily available, an insufficient workflow can sabotage efficiency. Manual operations mean details need to be entered multiple times and passed through numerous systems and parties. Already a long-winded process, human error comes part and parcel, meaning error resolution often causes further delays.
With an automation-enabled VMS, worker details need only be entered once, then can automatically be shared with all relevant parties. This means registration and compliance can be executed efficiently, accelerating vacancy-to-hire.
Second-tier agencies can also be granted access to the same platform. In cases where their services are required, they can communicate in real-time with the Master Vendor, maintaining quick and high-quality vacancy filling.
Cost Efficiency
The absence of multiple suppliers often means clients expect a more cost-efficient service. Running the collective recruitment and HR function in-house can streamline initial costs. However, with overly complex workflows, this doesn’t always translate into client savings.
Paying out for multiple siloed systems, requiring large admin teams, inflates operational costs. Onsite licence software often come with inflexible contracts and large up-front payments. As they are often non-temp workforce specific, they come with many features which are irrelevant to the MSP, ultimately wasting the budget.
With the right VMS, you can reduce your back-office costs and pass the savings on to your clients. Cloud-based VMS is often the most cost effective option as they usually operate on a Pay as You Go basis . This means you never pay any more than your exact usage needs. And with cross-platform automation, you can cut manual admin costs too.
Getting Ahead with VMS
Updated VMS can, not only help Master Vendors fulfil expectations but add value too. Industry competition is rising, meaning establishing unique selling points and increasing value propositions is vital. With the right VMS, you can run a higher quality service for less, beating competitors for clients and securing long-term success.