5 Critical Areas Staffing Firms Need to Focus When Working with Third Party Vendors

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Not working with third-party vendors is not an option in this market.

By 2020, the technology, media, and telecommunications (TMT) industries may be short more than 1.1 million skills workers, globally, according to Korn Ferry’s Future of Work: The Global Talent Crunch report. 

More than likely, the impact of this shortage is already impacting your IT staffing firm. Unfortunately, the shortage is only set to grow. Fast forward to 2030 and that deficit may reach a devastating 4.3 million. 

These high shortage numbers may be one of the reasons your firm sources talent with the help of third-party vendors. Unfortunately, they’re often looked at as the ‘necessary evil’ of the staffing world. Luckily, there’s a way to lessen the negative connotations associated with them. The key to decreasing frustrations, ultimately, increasing profits revolves around having the right resources. 

That’s where vendor management systems come into play. For example, each feature we offer at iLabor intentionally tackles the challenges IT staffing firms face when working directly with third-party staffing vendors. 

Here are five things IT staffing firms need when working with third-party vendors:

1. Centralized vendor management

IT staffing firms everywhere are battling a fragmented vendor management process. Unfortunately, this creates a lack of communication, visibility, and reporting. Not to mention, you lose time and, ultimately, talent.

Centralized vendor management brings all those fragments together, aligning everything like an IT talent puzzle. It’s a single online tool that hosts all vendor-related activities. In one platform, you can distribute multiple requisitions at once, communicate with every vendor, track where your requisitions are in the process, and gather reports to see which vendors are most effective.

You’re more empowered than ever when each of these tiny details mesh. You have the power to control costs, reduce risks with unreliable vendors, and improve your opportunity to quickly land top IT talent.

2. Increased recruiter bandwidth

Considering, in roughly 10 years, we could be facing a talent shortage of over four million, saying you need to stretch your bandwidth to its limits is an understatement. To keep clients satisfied, you must find IT professionals with various skills, experiences, and personalities — no matter the shortage.

So, yes, this likely means working with third-party vendors to assist in finding that talent. In order to be successful, you simply need a tool that decreases the risk of working with unreliable or dishonest vendors.

That’s why iLabor gives you access to a full list of firm-approved vendors. As a result, you increase the number of third-party vendor recruiters. These vendors are part of your team, working to fill your client’s open positions.

This gives you the opportunity to focus less on positions available to H-1B visa holders. Instead, you’ll have time to turn your attention to permanent and W2-only positions that can’t be outsourced to vendors.

3. Single location to broadcast requisitions and communicate with vendors

Copy, paste, email, and repeat. You know the drill. With each requisition, you open new lines of communication with every vendor. This exhaustive process means ensuring effective communication takes more time than you have.

You need one location to share the requisitions that are already living in your ATS. iLabor’s management platform allows you to send requisitions to vendors with the click of a button. The amount of time this saves you on a per-req basis opens the door for more quality interactions with candidates and clients.

Additionally, with the Q&A feature, vendors can directly ask you questions. And with our ‘reply all’ function, you save time from answering the same question multiple times.

4. Robust vendor tracking, metrics, performance, and compliance

Spending time and energy on a candidate who can’t legally work for your client is one of the most frustrating third-party vendor pain points. It’s intimidating to send requisitions not knowing if a vendor is trustworthy or even has a positive track record.

All IT staffing firms must track their third-party vendors’ metrics, performances, and compliance. Our detailed reports take the guesswork and risk out of working with third-party vendors. You have the opportunity to only send requisitions to vendors who have the highest-quality and compliant candidates to offer.

5. Improved vendor pricing

You don’t have time for the vendor price dance, but that’s what happens without a management system. Vendors have the power to send astronomical rates. This leaves you with the undesirable and ineffective options of paying the price, negotiating, or walking away — setting you back to square one. 

Our management system lets vendors know they have competition by offering a coverage summary. This detailed report shows vendors the rates of all candidates in our system, not just those submitted by their company. They’re then encouraged to submit their own competitive prices. You’ll be facing vendors who are competing for your attention and approval by setting lower prices, rather than fighting with vendors to lower their prices for you.