Applicant Tracking System

How a Vendor Management System can help managing multiple recruitment agencies

Innovations in modern recruitment technologies are continuing to happen at a torrid pace as organizations seek out technical advantages to strengthen their hiring strategies in the face of pending economic uncertainties.  

A recent CEO confidence report confirms that today’s corporate leadership has serious concerns about a looming recession, and reverberations are already being felt throughout the global job market.  That has organizations clamping down on their spending, and candidates seem less willing to trust their careers to smaller “startups” in favor of finding employment with larger, more established companies. 

Amidst such market turmoil, organizations are switching their focus from expansion back to cost efficiency and trying to do more with less.  Recruitment and talent acquisition are crucial services that organizations are increasingly willing to outsource because of the cost savings involved.  Fortunately, new innovations in recruitment technologies like cloud-based applicant tracking systems (ATS) are playing a greater role in the lives of HR professionals who rely on the technology to do much of the “heavy lifting” that’s involved in modern hiring.  

For those HR professionals who need to collaborate with multiple recruitment agencies, the vendor management system feature that comes integrated within the best ATS systems on the market is proving to be a remarkable tool for managing those recruitment agency relationships.

What is Vendor Management

Vendor management has come to be defined as the administration of processes and technologies that maximize the value of the relationships an organization has with external partners.  In the HR world, those partners are often staffing and recruitment agencies that HR professionals collaborate with to make the best talent acquisition decisions for their organization and at the most economical costs.

The most efficient and profitable way for HR professionals to achieve this is with the support of a vendor management system that’s hosted within the array of recruitment technologies they use. 

The Importance of Vendor Management Systems (VMS) and Why They Are Needed

The rapid adoption of vendor management systems (VMS) within just about every industry across the globe is expected to drive the market past $4 billion by 2026.  

Before we explore why you need a VMS system to handle your recruitment agency relationships, it’s worth sharing here that the advantages of having an ATS at the heart of your talent acquisition strategies have been well documented.  Over 98% of Fortune 500 companies use an ATS, and any organization sifting through more than a thousand applications in a year would be wise to consider investing in one.  

New innovations in recruitment technology have successfully married ATS systems and vendor management concepts into a single, robust platform that’s proving to be very effective in helping HR professionals squeeze every bit of value they can get out of the relationships they have with the recruitment agencies they rely on.  The VMS feature embedded within these ATS systems provides recruiters with a centralized, web-based platform that allows them to effectively collaborate with all their staffing agencies in one online location, which simplifies their entire recruitment and hiring process.

In addition to having a centralized tool that serves as the single source to manage your recruitment agency activities, here are the top reasons why your organization needs a VMS system to handle multiple recruitment agencies:

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Process Improvement

Forbes magazine recently published an article imploring HR professionals to automate every process they can in order to compete in the modern job market.  That’s hardly surprising when another survey revealed that well over 90% of the world’s HR professionals report feeling totally burned out from the recent demands put on them.  

Process improvement is desperately needed in the HR world, and when traditional processes are improved via automation, it gives more time back to recruiters so they can be more effective in their area of expertise: finding the most talented job candidates.

A VMS creates many opportunities for these process improvements, especially in the software’s ability to automate and centralize the interactions and processes that take place between an organization and the staffing agencies they work with.   With a VMS in place, HR professionals have the support of a platform that gives them complete viewability into the exchange of the information that flows to and from the recruitment agencies they work with.  

Cost Management | Increased Profitability

As organizations scramble to cut costs and maximize workflow efficiencies, VMS systems are playing a greater role in helping HR professionals gain a tighter level of control over the costs associated with working with multiple recruitment agencies.  When an organization loses visibility into the relationships it has with staffing agencies. Costs can go undetected until it's too late, and that can cut into an organization’s profitability.  

Staffing agencies typically ask for a markup that can range from 25% to 100% of a hired worker’s wages, and a VMS is a powerful tool that can help ensure accountability on the part of staffing agencies.  By giving HR professionals an online platform to measure the effectiveness of all the staffing agencies they work with, they can make well-informed, cost-effective decisions in determining which staffing agencies are performing and which ones are less effective.  

VMS systems yield other opportunities for cost savings like giving HR professionals the ability to accurately obtain and analyze accurate payroll data and helping them avoid unnecessary expenses.  



In the modern job market, the strength of the strategic relationships that are built with external staffing agencies can be an organization’s competitive advantage.  An ATS system that comes with a robust VMS feature provides HR professionals with complete visibility into the status of all their communications with all their staffing agency partners within a single platform.  This lets recruiters more rapidly identify any potential risks they need to be aware of before they become a costly liability.  

Finally, when HR professionals have a VMS at the center of their external relationships, they can be more proactive in working with those recruitment agencies to support their efforts and improve the quality of the talent their efforts eventually produce.

Powerful Reporting Metrics

In terms of working with staffing agencies to locate the best talent, obtaining raw data from these relationships is crucial to recruitment success.  Unfortunately, very few organizations provide their HR professionals with the proper resources to assess important performance analytics to determine the real value a staffing agency brings to the table.  

A VMS system gives recruiters a powerful resource to extract useful performance metrics that help you track the efficacy of the dollars your organization is spending on the service of staffing agencies.  

Risk Mitigation | Compliance

The world of HR is heavily governed by regulations.  When your organization begins a relationship with a new staffing agency, there is the proper screening that takes place up front.  However, as these relationships grow (and become more successful), it becomes less pressing to continue screening staffing agencies for compliance as the relationship becomes more familiar.  A VMS system gives recruiters an easy-to-use platform to ensure that your hiring processes and the staffing agencies that you rely on are continuing to recruit and onboard new talent in a manner that remains compliant with government regulations.

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Enhance collaboration and results with Manatal

With 7 out of 10 CFOs bracing for a possible recession, we should stop to consider that recessions are simply a part of every successful organization’s history.  To survive the next one, organizations need to be willing to embrace new innovations in HR tech to help them navigate a volatile job market.  

Recruitment technology is expected to grow to be a $40-billion plus industry by 2026, and the ATS systems that include a robust VMS feature are rapidly becoming a core component of the hiring systems used by companies that rely so heavily on external staffing agencies to find the best talent.  

At the end of the day, the organizations that have already adopted a VMS system to manage the relationships they have with recruitment agencies have seen such process improvements that they now consider their VMS resource a vital component of their recruitment success.  

As more organizations consider modern recruitment technology solutions to find new process improvements, Manatal is proving to be the company that these organizations can rely on to provide those technical solutions.

Manatal’s platform boasts a  VMS feature that gives HR professionals complete visibility over the multitude of staffing agencies they need to work with.  Manatal’s cloud-based VMS feature helps companies strengthen their relationships with their new and existing partners and gives them the tools to maximize the value of each staffing agency relationship.

Start your 14-day free trial now to discover for yourself how Manatal’s VMS feature can provide you with control over these relationships and ensure accountability from all the staffing agencies that your organization works with.

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