NSW and QLD Shake up the Australian VMS Recruitment Market
NSW and QLD set to take a “My Way or the Highway” approach to the Australian VMS Recruitment Market
VMS or “vendor management systems” to the uninitiated are hot topics of discussion within the Australian recruitment industry at the moment as the NSW and Queensland governments recently announced their intention to move their entire recruitment processes through Fieldglass VMS. Also, the Australian VMS recruitment market is set to rise sharply as 28% of Australian recruitment agencies expect to work through a VMS in 2015, according to Bullhorn’s 2015 APAC Trends Report.
The potential impact to the Australian contingent recruitment market cannot be overstated, as all recruitment agencies intending to work with NSW and QLD will work out new business strategies of how best to work with NSW and QLD Governments and how to best access this VMS, or find alternative clients and revenue streams in an intensely competitive market.
Put simply, a VMS is a web-based portal for companies to manage and hire employees. It’s great for the hiring company as it reduces time spent on menial tasks and standardises the entire recruitment process. For NSW and QLD this new initiative should improve speed to hire and decrease the cost for government hiring bodies, particularly pertinent as NSW intend to increase their hiring expenditure by 30% in 2015. Public sector hiring has however always been one of Australia’s active markets, government positions are in high demand from prospective job seekers and recruiters have always been eager to fill these vacancies.
At first glance this seems like great news for recruiters able to work in a profitable and streamlined way with these employers. However, as vendors, the rise of VMS comes with unique challenges – contractual obligations, the need to pipeline candidates before roles exist, lower fees and how to access the VMS in a timely streamlined manner.
SMEs currently comprise over 80% NSW and QLD vendor list which suggests there will be steep learning curve for many over the next few years as these businesses with limited resource attempt to adapt. Many recruiters will have to face stark choices in this new reality as the government wields its influence with its ‘my way or the highway’ approach.
For those that choose to work within this growing VMS market, they will certainly need to adapt. However, the process needn’t be painful. Products such as VMS Access are available, that allows recruiters to integrate seamlessly with VMS, eliminate duplicate data-entry, automate workflows and provide your consultants with real-time information and live new job notifications. This approach reduces cost, keeps you ahead of your competitors and takes the pain out working the Australian VMS recruitment market.
In Australia, VMS is growing in importance year by year, and only those recruiters able to adapt and move in unison with the changing recruitment market will profit and thrive long into the future.