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Finding and hiring talent is often a costly, time-consuming process. By using streamlined candidate verification processes, however, hiring managers and recruiters will find themselves ahead of the game.

Verification Saves You Hiring Time

Spend Less Time Looking 

Think of all the time you’ll save by looking only at resumes and applications that have been filtered with the less desirable candidates removed. You want only the most qualified candidates. Some verification technology platforms specialize in specific industries, which saves you that much more time by reducing the number of prospects you need to vet.

Spend Less Time Screening Candidates

Employee verification is a time-consuming process. You know that phone screens, preliminary interviews, and reference checks can’t be conducted themselves. This eats up precious hours, but verification can give you that time back.

 

Verification Saves You Money

See Better Retention

If a problematic prospect isn’t vetted, they could become a problem if they’re hired. Making a poor hiring decision due to poor screening practices could result in a new hire not lasting long. You’ll find yourself back to square one, spending more time (and ultimately, more money) looking for talent. Proper candidate verification improves the retention of your organization’s staff.

Lower Your Hiring Process Costs

Background checks, drug testing, and other tests and checks aren’t free – they require either your time or money, and sometimes both. Background checks and drug screens, for instance, can be costly. Wouldn’t you love to eliminate these costs?

UCSDHC Jobs states that, “According to a recent report in HR Magazine, over 76% of companies use some form of employee screening when recruiting candidates. Most organizations have a third-party vendor conduct the employee screening.”

 

Verification Technology Could Be for You

There’s no need to reinvent the wheel. An excellent talent management program is available to help you with onboarding, documentation, and vetting. 

Candidate verification technology like that of VeriKlick makes life easier. Set hiring tasks to perform automatically, verify credentials, and more. Give yourself more time to focus on more important responsibilities while the hiring process becomes more simplified.

Interview-ready candidates are passed on to your hiring managers, thoroughly vetted by VeriKlick. The searching, screening, verifying, and recruiting is done for you so you can spend your time interviewing and hiring. Request a free trial or speak to a talent advisor (732-534-3888) to understand how our solution can eliminate hiring costs!

In our modern world, it’s no secret that technology has undoubtedly made things easier. Though it has its dark sides, tech has become the solution to many problems in the world, either by eradicating a problem all together or making it much easier to handle and navigate in everyday life. When it comes to business and supplier management, the story is the same – technology is your best vendor management tool for smooth-flowing business operations between you and your vendors.

Of course, how and why tech is the best management tool for you does require some explanation.

Between the various vendor management providers and needs of a single company, finding the right fit can take time. What’s more, poor vendor management can lead to losses of profit, time, and morale for you and your partners, which can hurt your business in the long run. It only makes sense to be extra careful when finding the right tech solution for your company’s vendor management needs.

What is Vendor Management?

Before we can get into vendor management tech, let’s first define what vendor management is. You know that vendors are people or other organizations that can provide just about any service imaginable to your business. This means that whether it be a manufacturer, supplier, creative, or contractor, any entity that fills a need for your business is a vendor. Vendor management, then, is the practice of coordinating your relationships with your various vendors, typically through the use of a management system, software, or other technology.

Vendor management is so important because most companies have various vendors to keep track of. This means keeping up with the different relationships you have with the folks providing a service on your company’s specific schedule. By adopting a vendor management system, you you’re investing in a useful, affordable management tool that not only manages your vendors, but expertly integrates their work needs and schedule with your own, making for a smoother partnership.

Smart Market News claims that the “North America vendor management software market is expected to grow at a CAGR of more than 4% during the forecast period 2027.” The increasing trend of adopting tech-based solutions to streamline the business process is boosting the implementation of vendor management software.

When working with vendors and the surrounding tech for vendor management systems, you’re sure to come across some of the following lingo:

Vendor On Premise (VOP): Many companies will hire a staffing agency who then employs vendors to work on-site. This is most common when a company is experiencing high turnover or when a task or project needs a large staff to work in a short amount of time.

Vendor Management System (VMS): This will pertain to mainly tech solutions for a company.

Vendor Management Office (VMO): This is usually related to a company’s human resources department or it may stand alone as its own entity.

Manager Service Provider (MSP): This is a type of vendor staffing agency that helps recruit, source, and provide top notch talent in various fields.

Let’s go deeper. Over time, vendor management systems have undergone various changes and developments to become the tech you know and use today. Understanding where your VMS came from can help you grasp how best to employ it.

The Vendor Management Process

The vendor management process is made up of a few actions, which include:

Selecting Your Vendors

Before you can hire a vendor, you should go through a stringent selection process. This entails researching and sourcing vendors who meet your company’s needs and getting quotes through RFQs (requests for quotes) and RFPs (requests for proposal). Once you have enough potential vendors, create a shortlist of who you’re most likely to hire. When making your selection, keep cost in mind, but don’t forget about other factors such as the vendor’s reputation, capacity, and customer service record. All in all, a vendor who is reliable and communicates effectively is a far better choice than one with a lower price.

Negotiating Contracts

Once you’ve made a selection, it’s time to negotiate a working contract with your vendor. Getting your contract correct from the jump is important because it saves time for both parties and ensures everyone is protected by fair terms. This process can be lengthy, so put aside time for it to be done right. Define the goods and services you’re receiving, start and end dates, and all other essential details and conditions. A good rule of thumb is to have your contract examined by a legal professional before everything is signed.

Onboarding Vendors

Now that you’ve selected your vendor and signed the contract, it’s time to onboard. Vendor onboarding is another process that can take time due to the time involved in gathering necessary documents and information for vendor approval. In this situation, a management tool is more than welcome. Be sure to secure contact information, payment information, and other relevant information such as licenses, tax forms, insurance forms, and health clearances if applicable.

Monitoring Vendor Performance

Once your vendor is ready to work, keep an eye on vendor performance. This can be as simple as checking vendor performance against identified KPIs (key performance indicators) such as quality, efficiency, and volume of goods, services, and their delivery. If your vendor isn’t measuring up, you can use your management tool to give them clear goals to meet for improvement.

When It Makes Sense to Hire a Contractor

As you think about the types of projects you have available and the overall team structure you’re trying to build, it’s a good idea to weigh the benefits of a contractor versus a full-time, permanent employee.

There are a number of instances in which direct sourcing freelance or contract workers makes more sense than adding another full-time staff member to your roster.

Monitoring and Managing Vendor Risk

Once you have a vendor that’s secured one or two excellent performance reviews, don’t become complacent. You must always monitor your vendors for risks that may impact the company, and these risks may include lawsuits, data breaches, security issues, and compliance breaches.

Strategic Risk: Strategic risk can stem from contracting with vendors who don’t provide the services that you need to maintain proper operations. Making a poor choice among your vendor prospects can result in diminished earnings and capital.

Reputational Risk: Reputational risk can result from poor service from third-party providers. Their shortcomings can prevent you from delivering customer interactions in keeping with your standards.

Compliance Risk: Compliance risk is elevated when your legal or consumer compliance controls are lacking, rendering you unable to gauge your vendor’s compliance in key areas.

Operational Risk: Operational risk may result from a vendor’s technology failure, inadequate capacity to fulfill their contract, or error. In worst-case scenarios, if a vendor engages in illegal or fraudulent practices, they can stall your operations and require you to spend precious resources rectifying the situation.

Furthermore, if a vendor suddenly falls behind on deliveries, you must monitor how it will affect your company in general – will a missed delivery back up the whole process? Will it shut down operations? Keep this in mind when considering sticking with vendors or looking for new ones.  

Paying Vendors

Finally, ensuring that your vendors are paid on time for their services is important for the professional relationship, your reputation, and honoring the contract. Failure to pay on time could have negative consequences for your company, further tying up operations and business.

Advantages of Using Technology as your Vendor Management Solution

In addition to being a simpler, smoother interface to work with, a VMS tech solution comes with valuable advantages that include:

A Centralized Information Base

Having all your pertinent vendor information in one place makes for a more efficient business. VMS tech allows you to have financial information, contracts, insurance certificates, security policies, and other necessary data collected and stored in a single safe place with easy access. Your vendors’ most important info is at your fingertips, organized and available when you need it most. What’s more, you can also track and store other information such as performance data, reports, number of employees, savings, profits, and more.

Decreased Vendor Risk

When vendor management is automated, there’s a better chance of catching vendor prospect risks quickly so you can fix the problem straight away. For example, if a vendor doesn’t have an insurance certificate on file, you’ll be immediately notified. This keeps you safe from any lawsuits that may arise and allows you to manage the issue in a swift, effective manner. A vendor management system gives you the opportunity to mitigate risks.

Enhanced Vendor Performance (with trackable metrics)

On the other end of the spectrum, when your vendor is doing a great job, you’ll want to recognize them and act accordingly. An automated VMS system provides you with the metrics to measure and track performance to see that quality standards are being met. In addition, a vendor management tech solution allows you to execute objective assessments of deliverables so that your vendors know exactly what’s expected of them and their performance. This leads to increased performance and quality control, turning your vendor prospect into a lifelong partner.

Strengthened Supplier Relationships

When you’re able to make standards and expectations clear to vendors, it lets them perform better on the job. When deliverables are on time, goods and services are of the highest quality, and your customers are happy, it all makes for a healthier supplier relationship. Good communication means better action, and a vendor management tech solution makes communication clear and easy.

Why Tech Is the Best Choice

Automating vendor management processes makes practical sense for your business. Manual operations have their benefits but using a vendor management tool to make things run more efficiently is the right solid choice for future success and growth. With so many moving parts to keep track of, sticking to manual operations runs the risk of increased errors and decreased performance when it comes to deliverables and labor. To make matters worse, the more mistakes that come up, the more time and money are wasted.

Few companies today can operate without vendor partnerships. Vendors are as widespread and necessary as an HR department for most companies, so finding a way to manage and monitor their many moving parts is a worthy investment.

To get the most out of your vendors, be strategic about management. It boils down to finding and using the best tool and tech for the job.

These days, the best businesses are always in competition to develop cutting-edge products and services and offer superior customer service. Most importantly, there’s competition to attract and retain the best candidates.

So, how do you succeed with staffing goals and initiatives when so many businesses are facing detrimental skill shortages and high competition for the talent they need?

This increase in competition over talent has forced employers to think beyond traditional recruitment programs. No longer can employers rely on a post-and-reply model or depend on expensive recruitment services or providers. Hiring managers need to think outside the box for staffing solutions that secure the top talent they require. 

Direct sourcing is a growing recruitment trend that empowers brands to get proactive and take control of their staffing practices. Through direct sourcing, employers gain access to a flexible workforce made up of independent contractors, freelancers, or former employees to support the rapidly changing business demands of today’s economy. This gives brands an edge over the competition in engaging highly skilled candidates to help grow their business.

There are many benefits of launching a direct sourcing recruitment solution for your business. This includes attracting and engaging with the best talent in the labor market, affordable recruitment solutions, minimizing staffing turnover, hiring and onboarding new talent quickly and efficiently, increasing company productivity, and forming better relationships with top-tier candidates.

However lucrative the benefits may be, adopting a direct sourcing model for your hiring practices is no walk in the park. It takes a continued effort from your human resources personnel to funnel in new candidates and keep existing talent engaged. 

Not sure whether you’re ready to commit to a direct sourcing recruitment strategy? Let’s look at 10 ways to determine if direct sourcing is the best talent management solution for you.

1. You Depend on Top Talent to Support Your Business

It’s been said time and time again that a business is only as successful as its workforce, yet 80 percent of HR professionals have a hard time attracting top talent. Whether you work within an industry that’s hard to source candidates, or you’re sourcing candidates with a niche skill set, finding the right talent to support your unique offerings is a challenge. 

Employing a direct sourcing talent management solution can help open the door to some of the best candidates (including the contingent workforce) around the world. You’ll create a directory of talent that fits your corporate culture to keep your brand miles ahead of the competition.

2. Your Business Demands Require You to Scale Up Your Workforce

Do periods of high demand leave you struggling to grow your workforce quickly? Traditional recruitment methods or working with a staffing agency demand lengthy turnaround times to vet, hire, and onboard staff. This can be especially devastating when the booming business requires you to quickly double or triple your workforce for special projects, or to meet growing demands. Maintaining a directory of qualified contingent workers, eager and ready to work for your brand, helps you staff the candidates you want in the growing numbers you need.

3. You Have a Limited Budget or You’re Looking To Save Money Through the Recruitment Process

In recruitment, just like business, time is money. Wasting time on a lengthy recruitment process, waiting for candidates to engage, and vetting and onboarding can cost your organization a small fortune. 

Direct sourcing candidates are ready to go. You’ll save on the expensive ad campaigns to attract top tier applicants and can say farewell to the high recruiting costs of expensive third-party talent providers. Limit spending through the hiring process and gain access to skilled candidates within your industry. Talk about a win-win!

4. You’d Like to Skip the Middleman

Tired of the expensive fees of working with recruiters? Or the high turnover rate of employees who fit the job description but not your work culture? Draw from your own pool of top tier candidates with direct sourcing as your talent management solution. Using your own brand, rather than a third-party recruitment provider, you can attract and engage the skilled talent who want to work with you. Even better, you’ll skip the hassle of working with suppliers who provide candidate after candidate that just don’t make the cut.

5. You Needed Skilled Candidates Yesterday

Lengthy recruitment processes to find the perfect candidate is no longer your only option. In fact, an astounding 45 percent of businesses are experiencing a growing need of on-demand talent. 

Now imagine diving into a pool of engaged, qualified candidates and producing faster turnaround times for even the hardest-to-fill jobs. That’s direct sourcing! Direct sourcing offers an optimized talent management solution that allows you to efficiently source the candidates you need for your business. It’s a quick and easy way to deploy skilled and proven workers where you need them, when you need them.

6. You’re Looking to Improve Your Brand Experience

Building a brand in today’s competitive economic climate is so much more than selling stellar products or offering unparalleled services – it’s about creating a unique experience for your consumers and standing out from the competition. 

Managing a solid direct sourcing program can help turn your industry’s top talent into your best brand ambassadors, meaning you’ll not only gain access to a network of potential contingent employees that continue to feed your talent pool, but you’ll also improve your branding and gain new consumers.

7. You Wish to Improve Your Candidate Retention and Decrease Turnover

It’s today’s fiercely competitive labor market that makes improving candidate retention an essential contributor to the success of your business. Deploying direct sourcing recruitment enables your brand to leverage your corporate culture and create a positive employer-candidate relationship. Nurturing this relationship with frequent communication and engagement works to drastically decrease unwanted staffing turnover and improve your overall candidate retention.

8. You Need to Diversify Your Workforce

Roughly 25 to 30 percent of the American workforce is made up of contingent workers, such as freelancers or independent contractors. That’s more than a quarter of the labor market! Deploying a direct sourcing program for your talent management provides you access to this whole new group of candidates, bringing a whole new range of diversity from candidate experiences to cultural backgrounds into your workplace.

John Hall, the Senior Contributor at Forbes.com, says this about freelancers shaping our new workforce dynamics:

“As more people make the transition into independent work, freelance job marketplaces will only continue to grow in size and diversity — from the freelancers and companies utilizing them to the market segments and skillsets that define them. If custom project software and internal directories or networks of dependable freelancers and consultants aren’t options for your company right now, online marketplaces may be your best option to connect your team to talented independent workers.”

9. You’d Like to Build a Positive Relationship with Global Talent

A successful direct sourcing program is sustained through frequent communication with your talent pool. Providing check-ins and updates help to keep some of the best candidates engaged with your organization and available when you need to deploy them. The talent management program works by creating a pipeline between your business and some of the best candidates available, promoting brand loyalty amongst your talent directory and improving your company’s brand.

10. You Want to Improve Your Company’s Productivity and Efficiency 

A direct sourcing program equips your brand with access to the right candidates at the right time. Quickly deploying qualified candidates from your vetted and skilled talent pool can greatly benefit your brand’s overall productivity. By reducing the time to hire and engaging only the best talent with the right skillset, you’ll immensely improve your company’s output.

VeriSource is your Solution for Direct Sourcing.

Our hands-off recruiting solution, VeriSource, is powered by industry-leading advisors for finding the perfect hire with an easy-to-use interface to manage the talent acquisition and application process from start finish. 

Interview-ready candidates are passed on to your hiring managers, thoroughly vetted by us. The searching, screening, verifying, and recruiting is done for you so you can spend your time interviewing and hiring. Request a free trial or speak to a talent advisor (732-534-3888) to understand how our solution can work for you!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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