The contingent workforce landscape is constantly changing, and with that, so are the needs of companies who utilize contingent labor. Partnering with a firm that can provide an efficient Master Vendor Solution comes with many advantages to drive your organization towards success.
What Is A Master Vendor Solution?
A Master Vendor Solution is a qualified supplier that takes overall responsibility for providing clients with temporary talent. All Total Talent requests will usually be given to the master supplier first, who will then complete the request themselves or distribute the request to secondary suppliers. Sometimes a master supplier will not only provide a significant portion of the temporary talent working at an employer’s site, but they will also continue to manage an organization’s contingent workforce program.
Below are the top five benefits of using a Master Vendor Solution.
5 Benefits Of Choosing A Master Vendor Solution
1. Headcount Flexibility
Having the ability to increase or decrease headcount on demand is one of the major advantages of having a scalable workforce. As the market continuously changes, organizations are faced with the challenges of ramping their workforce up and down in what can often be a relatively short amount of time.
The flexibility of a scalable workforce also helps companies maintain their reputation when there’s a turn in the market. There will be unavoidable times when the market is volatile and mass layoffs may be necessary. Also, contingent workers can be used to fill the gaps when full-time employees (FTE) must take a leave of absence such as medical, maternity, etc.
2. Cost Savings
Saving money is at the forefront of many customers’ minds. By utilizing a contingent workforce, companies are only paying a fraction of what they would for full-time employees, as contingent workers typically don’t cost as much as a full-time employee. Even in cases when the contingent worker may earn the same as the FTE, companies can still benefit from increasing contingent headcount without increasing the overhead cost typically associated with a full-time worker.
Since talent partners are responsible for the burden of the contingent worker when it comes to benefits, employment taxes, workers compensation, unemployment and more, companies immediately save money by using a contingent workforce as they don’t absorb those costs. In many cases, especially that of a Master Vendor scenario, the talent agency can become an extension of the company in which they are providing labor.
When this happens, companies can also find cost savings in their advertising and recruiting. In addition to referring candidates to their Master Vendor to fill open positions at a reduced cost, companies can also see immediate cost savings when implementing a Master Vendor solution that allows for the incoming agency to transition the existing headcount under a reduced mark-up or payrolling rate.
3. Customization Tailored To Specific Needs
Every company is different, and so are their contingent labor needs. A Master Vendor should provide scalable customized solutions for a client’s current and future needs. These customized solutions can come in many different forms such as individualized skill testing, specific onboarding (including drug and background screening), customized reporting and billing, and quarterly business reviews. Many Master Vendor solutions are customized with onsite management personnel as well as dedicated recruiters that serve as subject matter experts in a variety of industry skillsets. For customers with a large industrial workforce, a customized lead or working supervisor program may be necessary.
Many industries benefit from the use of interns; the designated Master Vendor can create a customized intern program which may also serve as a qualified talent pool for the customer’s future Total Talent needs. For customers that have ongoing special projects, the Master Vendor can create customized recruiting solutions to pipeline candidates for these short term roles. Depending on what is needed, there are countless customization options when it comes to using a Master Vendor.
4. Ability To Focus On Core Business
A scalable workforce allows clients to focus on their core business. By engaging contingent labor to satisfy entry level skillsets, customers are able to free up higher skilled labor to concentrate on more complex tasks. The use of a contingent workforce can also alleviate pressure on a customer’s internal recruiting team.
Scalability allows for a contingent worker to fill roles in the interim while in-house recruiting teams continue to source candidates to fill full-time roles. A Master Vendor partner should also share current trends and market data. This intel will help customers create a strategy around their contingent workforce and permanent hire needs which is imperative in today’s competitive job market.
5. Alignment With A Growth Strategy
A primary element of a scalable contingent workforce is that it’s aligned with the customers’ growth strategy. For example, customers in a manufacturing environment need a talent partner that can supply on demand talent in order to meet production demands. As growth occurs, it’s natural for the needs of the customer to change. It’s important to engage with a talent partner that can answer today’s need for a Master Vendor solution but can also bring solutions such as MSP, RPO, and Total Talent Management in the future.
No matter what talent solution a company chooses, it’s important that they are engaged with a partner that will provide them with a scalable solution. The scalability of a Master Vendor solution will streamline a customer’s contingent workforce program by providing cost savings, a customized approach and flexibility while also allowing the customer the crucial opportunity to focus on their growth initiatives.