Cost Savings with a Vendor Management Staffing Program

Cost Savings

We’ve had several clients utilize this new Vendor Management Staffing Program and take advantage of the cost savings. The program is NO cost to clients and relieves unnecessary costs companies usually see when utilizing multiple staffing vendors.

Mitigate risk by having 1 staffing agreement with the Vendor Management provider.

You basically eliminate the legal and binding relationship between you and the other staffing vendors, but you’re able to still utilize their services.

Standardized Rates and Terms.

Evaluating each staffing supplier that a company currently uses and comparing it to market rates in the U.S. should reduce the overall markups. 99% of the time companies are overpaying with markups, conversion terms, contract lengths, etc. Using data, we recommend pricing to our client companies and then negotiate with the staffing vendors to bring everyone on board the program. Rates are standard based on type of position, location, department, etc. This also helps forecast total spend by department and location within the talent acquisition function and with workforce planning.

Time it takes to interact and engage staffing vendors.

The Vendor Management Program provider should handle RFIs and RFPs for new staffing vendors and should be constantly updating the program suppliers with the top and best staffing companies available. Not only will client companies receive the best quality of candidates from the top providers, the time Hiring Managers spend interviewing will decrease. Often when you have a great VMS provider, they should be able to recommend their top staffing agencies from other programs and bring them along based on their specialties.

Managing the Performance of Staffing Vendors:

The VMS provider can customize reporting based on what a company wants to see from their providers. Usually time to submit, % of submission to interview, interview to hire ratio and success or fall off rate. This will ensure that providers are performing at their very best or they can be coached up or out.


Tenure rebates – If a temporary or contract employee is on assignment for a long period of time, say1 year contract, you can engage a tenure rebate. This will reduce the markup from a recruited markup around 50 % to a payroll markup around 20% once the employee has reached a certain tenure of time around 4 months, 6 months, etc.

Volume rebates – Leverage your economies of scale with your total spend. Establish thresholds where you receive a % back once a spend threshold is reached. Your rewarded for the business you are providing.



Kyle Anderson, Regional Manager, Total Talent Solutions