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How to Be Profitable with VMS

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Vendor Management Systems (VMS) present an exciting business opportunity for staffing firms. VMS can also be intimidating, frustrating, and inefficient. But it doesn’t have to be. With the right approach, it can be the most profitable part of your staffing business. Check out these tips for making the most out of your VMS business.

Use a business model tailored to VMS

It’s tempting to take the same approach to VMS as you would for direct hiring, but it won’t help you get the most out of your VMS business. The margins, the communication styles, the approach to relationships, and the success metrics that work for your normal operations likely need to be adapted or overhauled entirely to be successful for your VMS business.

Some factors that are important for direct hiring are doubly important for VMS, while others are less relevant. Communication and effective technology use are especially critical for your VMS business. Ask yourself these questions to ensure you’ve optimized your VMS business.

  • Have you trained your recruiters to be technologically efficient?
  • Do your recruiters understand strategies and best practices that’ll help them follow up with non-communicative clients?
  • Do your recruiters have the time and flexibility to meet high-volume job order demands?

Get the ebook: The Path to Profitability

Leverage data to understand your business

How much of your VMS business do you track on a consistent basis? You need to understand your business but do limited time and resources get in the way? If you report on your VMS business consistently, you’re ahead of the curve.

Here’s a look at the metrics staffing professionals say are important compared to the percentage of firms that actually track them.

VMS Profitability

As you can see, most firms fall short on measuring the data that will better help them understand their business. If you want to make positive changes to your business, it’s critical to discover what needs changing in the first place.

Consider using a tool that automates your VMS reporting. The results are more likely to be accurate than self-reported metrics and won’t divert time your recruiters could use on other equally important tasks.


Want to learn more tips and techniques to be profitable with VMS? Check out The Path to Profitability: How to Bypass VMS roadblocks learn how you can overcome the most common barriers when working with a VMS.