In my last post, I discussed some of the lesser-known advantages of incorporating a vendor management system (VMS) into your business strategy. Now, I will share how to overcome obstacles to VMS adoption and how to manage it!
Overcoming VMS Adoption Barriers
While the benefits of incorporating a VMS into your business strategy are compelling, there are challenges that staffing firm leaders may encounter during the adoption process. Let’s explore some best practices for overcoming these obstacles:
Select the right VMS provider. If you are acting as a managed service provider (MSP), the success of VMS implementation begins with choosing the right provider. Conduct thorough research, seek recommendations and evaluate potential partners based on their track record, customer reviews and industry expertise. If instead you are working with a customer and don’t have input on what system they use, getting a thorough understanding of that VMS’s workflow is critical.
Get buy-in from stakeholders. Resistance to change is common in any organization. To garner support for VMS adoption, it’s essential to communicate the long-term benefits clearly. Engage key stakeholders, including leadership, recruiters and IT personnel, in the decision-making process and address their concerns proactively.
Invest in training and education. Comprehensive training is critical to ensure that your team can effectively use the VMS platform. Invest in training programs and resources to familiarize your staff with the system’s functionalities and encourage continuous learning to maximize its potential.
Assign a team or a manager. To really get the most out of the system, you’ll want to hire someone or move an existing team or team member to manage VMS jobs full time. Some financial partners also offer VMS management services to help.
Monitor and measure success. Implement key performance indicators (KPIs) to track the impact of VMS adoption on your business. Regularly review these metrics to identify areas for improvement and make necessary adjustments to optimize your VMS utilization and profitability. For instance, increased markups on your bill rates may need to be reviewed regularly.
Tips for Managing a VMS Effectively
Many staffing firm owners are incorporating a VMS already in their business plan, but many aren’t using them to their full potential. Here are some best practices for effective VMS management:
Clear communication. Establish open and regular communication channels with your VMS provider. Ensure that both parties are aligned on goals, expectations and any system updates or changes.
Dedicated VMS administrator. Designate a skilled VMS administrator within your firm to oversee the system’s day-to-day operations, troubleshoot issues and act as a liaison between your team and the VMS provider.
Data integrity and quality. Maintain data accuracy and consistency within the VMS by enforcing strict data entry standards. Clean, reliable data is essential for reporting, analytics and client satisfaction.
Customization. Leverage the customization features of your VMS to tailor the platform to your firm’s specific needs. Ensure that it aligns with your unique business processes and client requirements.
Proactive issue resolution. Address any system issues promptly to prevent disruptions in operations. Timely issue resolution helps maintain client trust and candidate satisfaction.
Performance monitoring. Regularly review performance metrics and key performance indicators (KPIs) to identify areas for improvement and opportunities for optimization.
By implementing these best practices, staffing firms can effectively manage their VMS, maximize its potential and stay ahead in the competitive staffing industry landscape.
As you embark on your 2024 business planning journey, don’t overlook the potential that a well-implemented VMS can bring to your staffing firm. Beyond the traditional advantages of cost reduction and compliance, a VMS can empower your organization with data-driven decision-making capabilities, improved client onboarding, enhanced candidate experiences and more.