Over the last decade or so we’ve seen a major shift in the way that organisations take on temporary staff. Until then the ‘traditional’ approach was the direct-hire, where the hiring managers liaise with the Agencies themselves and negotiate rates, SLAs, and other Terms.
This approach led to considerable time being invested by those managers in what is effectively administration – and not ‘core’ business, invariably resulting in multiple agencies that need to be managed, multiple timesheets and invoices to process and leaves the supplying Agency in the stronger negotiating position given the levels of spend committed to by the customer.

The new way of thinking is now in the form of Vendor Neutral Models.


Vendor Neutral recruitment means there is no connection or affiliation to any recruitment agency. Our  Provider doesn’t own a recruitment agency, nor do they have any vested interest with any 3rd party recruitment agencies.

This approach introduces a fair, open and transparent competition in to the marketplace which in turn provides better quality candidates at the best market price. Our vendor neutral model supplier ensures competition and technology-enabled supplier responsiveness.

This means they can manage your recruitment agency relationships extremely effectively as there is never any conflict of interest around margins. We believe this transparency is best.

Our customers can demonstrate;
• Increased choice of candidates
• Better quality of candidates
• Significant cost savings – direct and indirect
• Reduced exposure to risk
• Increased fulfilment levels
• Better customer processes
• Full visibility and control over spend
• Increased local candidate and supplier engagement
The systems allow for you to be able to select particular individuals for roles (if for example there’s staff you’ve had before and would want back, or for those who had already been through your induction or were familiar with your site and/or specific requirements).
This can also apply to your own Bank staff if you have any.


How Does It Work?

First and foremost, you will always receive the best candidates possible. As a Neutral Vendor model raises the vacancies with a number of approved agencies, they’re in indirect competition with one another to fill as many of the vacancies as possible with their candidates. This means that they will only send their strongest candidates available.
Secondly, all agencies and agency staff have to be fully compliant with all temporary worker legislation. As part of a Neutral Vendor Managed Service, audits of agency suppliers will be carried out regularly. All agencies who don’t pass the audit would be suspended until they become fully compliant. Additionally, all candidates are compliant with Agency Worker Regulations (AWR).
The Neutral Vendor Managed Services team is a single point of contact for you. Your Account Manager will be in direct contact with the agencies on your behalf, freeing up your managers time to focus on their day to day job and not have to listen to agencies selling their candidates and services.
Once a role has been raised, the candidates will be screened and passed to the hiring manager. All they would need to do is confirm who they would like to see and when. Once the interviews have been completed, the team will then submit any feedback to the agencies, including any offers.
Finally, you would have access to a fully-integrated online system. This will record all temporary vacancies to allow full visibility of all temporary workers within the business, including the financial implications. You should never be kept in the dark, or unaware of your current situation.
Risk is reduced by pre-verifying all candidates before they start contracts, ensuring they’re always 100% compliant.

What Are the Financial Benefits?

Most importantly this should never be seen as a simple cost cutting exercise.

Your staff are a key resource to your organisation and there would be no point at all in driving down the hourly or daily rates for a role and getting a lower quality replacement.
There are basically 3 elements to the ‘cost’ of a temporary worker. The individual’s take home pay, the statutory figures (NI, holiday pay etc), – then the Agency’s mark up or profit margin. Our partners negotiate only on the mark-up element, either with your incumbent suppliers or with new ones that could be introduced.
Average reductions on Agency mark-ups for first generation projects are around 18%, regardless of role, role complexity or seniority. The individual’s take home package is never affected.
On top of the bottom line savings are the processing benefits; consolidated e-invoicing, better credit terms, on-line timesheet submission and authorisation and so on – all helping reduce the operating & admin costs of keeping your organisation running.

A public sector company in Gloucestershire adopted the model and reduced (direct) costs of temporary staff by 23%. A Charity went down the same route and reduced direct costs by 21% and a large finance sector company saw a 29% reduction. All additionally benefitted from streamlined processes that enabled them to redeploy admin staff or remove roles entirely. All began by our negotiating the better rates with their incumbent suppliers but subsequently reported an improvement in the quality of staff on offer when our partner was able to widen the net of Agencies wishing to supply to them.

What Can The Supplier Offer?

What categories of temporary staff are covered?
The online systems being used by customers procure over 20 different skills categories of temporary staff, ranging from general Sec/Admin roles, through to more specialist roles such as highly qualified Social Care.

Who do we work with?

Over 80 public and private sector organisations in the UK, using technology and end-to-end processes to fill £330m of temporary staffing services each year. Each and every week, over 2,500 local recruitment suppliers interact to supply over 15,000 temporary workers across a broad range of different skills categories.

A few key statistics 
• Supporting nearly 100 clients in the private and public sectors
• Managing over £330 million in recruitment spend each year
• On average, delivering £30 million in cashable savings to clients each year
• Utilising a network of 2,500 active employment agencies
• Engaging over15,000 temporary workers each week
• Ensuring 100% of workers fully compliant before assignment
• Ensuring that 99% of requirements are fulfilled within specified times



The Old School House,
3a Leckhampton Rd,
Cheltenham, Glos,
GL53 0AX

© 2020 Provantage Procurement Ltd, All Rights Reserved | Powered by PR Geeks

Share This