{"id":63241,"date":"2020-01-15T14:39:43","date_gmt":"2020-01-15T14:39:43","guid":{"rendered":"https:\/\/www.bullhorn.com\/eu\/?p=63241"},"modified":"2020-01-20T11:30:41","modified_gmt":"2020-01-20T11:30:41","slug":"recruitment-vms-trends","status":"publish","type":"post","link":"https:\/\/www.bullhorn.com\/eu\/blog\/recruitment-vms-trends\/","title":{"rendered":"VMS: An Overlooked Opportunity for Recruitment Agencies in 2020?"},"content":{"rendered":"
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VMS (Vendor Management System) business is one of the most divisive\u2014and possibly misunderstood\u2014topics in the recruitment industry. Is VMS an actual growth opportunity for recruitment agencies or is it just a necessary evil of doing business with large clients? And can it actually be profitable for businesses? In many cases, the data contradicts the common perceptions. Read on for a deep dive into some of the core questions surrounding the ever-controversial topic.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Who\u2019s Using VMS?<\/b><\/h3>\n<\/div>\n<\/div>\n<\/div>\n
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Only large recruitment agencies use VMS, right? Think again.<\/span><\/p>\n

Two out of five small firms use VMS on at least an occasional basis, and more than half of mid-sized agencies use VMS world-wide. <\/span>If you\u2019ve dismissed VMS as a viable opportunity because of the size of your agency, it might be worth reexamining.<\/span><\/p>\n

Large agencies are indeed the most likely to use VMS, and the adoption rate is especially high among the largest and most profitable agencies. A\u00a0recent survey<\/a> of some of the largest recruitment agencies in the world found that 100 percent of agencies with revenue over $100 Million USD did at least some business through a VMS.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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While VMS adoption is 48 percent for businesses globally, North American agencies are significantly more likely to deliver job orders through VMS systems. North American agencies are also the most optimistic about using VMS going forward, with 34 percent of agencies expecting an increase in VMS business in 2020.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Barriers to VMS Success<\/b><\/h3>\n<\/div>\n<\/div>\n<\/div>\n
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Why aren\u2019t more agencies using VMS? And what are the top barriers to pursuing VMS jobs? VMS has a historically\u00a0<\/span>negative reputation\u00a0<\/span><\/a>among recruitment professionals, and in some circles, the term has become synonymous with low margins. It may be something of a surprise then, that the top barrier for agencies today is not low margins. Instead,\u00a0<\/span>recruiting leaders cite<\/span><\/a>\u00a0the lack of contact with hiring managers as their biggest obstacle.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Low margins and an unavailable candidate pool come in second and third, respectively. Although a lack of contact with hiring managers is likely to remain a challenge, leveraging the right tools will allow your agency to improve the barriers that you can control.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Unlocking the Potential of VMS Through Automation<\/b><\/h3>\n<\/div>\n<\/div>\n<\/div>\n
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Technology can help move you a fair amount of the way toward getting the most out of your VMS business. Streamlining your internal processes through automation is a great way to boost efficiency\u2014and there\u2019s a lot of room to do it.\u00a0<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Just 19 percent reported automating VMS integration<\/a>, even though the majority of recruitment businesses that automated have noted a higher fill rate as a result. <\/span>How much can automation actually boost your VMS business? The jury\u2019s still out. Most agencies are undecided on the true impact of automation on their VMS success, likely because reporting remains fairly minimal.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Measuring VMS<\/b><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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What metrics do recruitment agencies track when it comes to VMS? For many recruitment businesses, the answer is that they don\u2019t report on any metrics at all. A full two out of five agencies don\u2019t track gross margin or the number of requisitions per month.<\/span><\/p>\n

Hires-per-month is the most reported metric, followed by gross margin. Given how little is known about the real potential of VMS profitability, tracking your base metrics is a good way to measure the true value of VMS business for your agency.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The VMS Opportunity<\/b><\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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Should you decide that VMS is a major part of your business plan in 2020, you may benefit from reduced competition. Just three percent of respondents said expanding VMS is a priority for 2020.<\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Although recruitment professionals are largely expecting to increase investments in technology, placements, and their operating budget, just a third of respondents plan to increase VMS business in 2020\u2014making it the lowest priority of all surveyed options.<\/span><\/p>\n

The steady supply of available VMS business combined with the reduced interest in pursuing it from the recruitment industry could create a major opportunity for agencies equipped to handle it. VMS business may not make sense for all recruitment agencies, but agencies that leverage automation and reporting tools could be primed to have a huge year in 2020.<\/p>\n

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Want to read more about the topics that matter most to recruitment professionals? Subscribe to the Bullhorn Blog<\/a>\u00a0for news, tips, interviews, trends and more.<\/i><\/span><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Staffing and recruiting professionals aren’t prioritizing VMS business in 2020. Here’s why you might want to reconsider.<\/p>\n","protected":false},"author":141,"featured_media":63242,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"om_disable_all_campaigns":false,"footnotes":""},"categories":[584],"tags":[],"class_list":["post-63241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-trends-and-insights"],"acf":[],"yoast_head":"\nVMS: An Overlooked Opportunity for Recruitment Agencies in 2020? - Bullhorn EU<\/title>\n<meta name=\"description\" content=\"A survey of recruitment trends reveals that recruiters aren't prioritising VMS business in 2020. 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Before joining Bullhorn, Bob spent five years at the digital marketing agency, Brafton, as a Social Media and Engagement Manager. He earned his bachelor's degree from Siena College and his MFA in writing from Emerson College. Bob can most commonly be found writing or turning things that aren't games into games.","url":"https:\/\/www.bullhorn.com\/eu\/blog\/author\/bobmchugh\/"}]}},"grav_blocks":null,"card_markup":"<a class=\"card-resource\" href=\"https:\/\/www.bullhorn.com\/eu\/blog\/recruitment-vms-trends\/\">\n\t\t\t<div aria-hidden=\"true\" class=\"card-resource__image-container\">\n\t\t\t<img class=\"card-resource__image\" alt=\"shutterstock_1195766026\" title=\"shutterstock_1195766026\" src=\"https:\/\/www.bullhorn.com\/eu\/wp-content\/uploads\/sites\/21\/2020\/01\/shutterstock_1195766026.png\" \/>\t\t<\/div>\n\t\t\t<div class=\"card-resource__content\">\n\t\t\t\t\t<span class=\"card-resource__category\">Industry Trends & Insights<\/span>\n\t\t\t\t\t<h5 class=\"card-resource__title\">VMS: An Overlooked Opportunity for Recruitment Agencies in 2020?<\/h5>\n\t\t\t<\/div>\n<\/a>\n","_links":{"self":[{"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/posts\/63241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/users\/141"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/comments?post=63241"}],"version-history":[{"count":0,"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/posts\/63241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/media\/63242"}],"wp:attachment":[{"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/media?parent=63241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/categories?post=63241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bullhorn.com\/eu\/wp-json\/wp\/v2\/tags?post=63241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}