Picking Your Preferred Vendors - The Intelligent Ways

One of the hottest trends in the staffing industry isthe next 12 months. The staffing vendor selection
the corporate implementation of the Preferredprocess for companies, however, is fraught with
Vendor List, a company's own elite collection ofquestions:
staffing suppliers. Although companies develop these- How will you as a company let off-list staffing
staffing vendor lists for very good reasons, as we'llvendors know when you're beginning the selection
see below, there are also four inherent challengesprocess so they can contact you without becoming a
with this management tool.nuisance?
- How will you ensure that a potential staffing vendor
1. Limited view of the talent market (You'reis a match for your company's staffing needs?
dependent on the talent pool of each of the- What will you do with the hundreds of brochures,
preferred staffing suppliers on your list)business cards, and voicemail messages you're
2. Staffing vendor complacency (Once a staffinginevitably going to receive?
supplier makes the cut, they may be less responsiveThe smartest way to select staffing vendors Like a
to your requests over time)light at the end of a tunnel, the HotGigs survey of
3. A decrease in the competitive environment forhiring companies points to an innovative way of
staffing suppliers on the list (With less competitionresearching and selecting quality staffing suppliers. In
among staffing suppliers, the speed of filling yourour surveys, companies said they want an
requisitions and the quality of the candidates mayon-demand, centralized database system to help
suffer)them select staffing vendors for their Preferred
4. RigidityVendor List. The system, they said, should help
Your staffing vendors may become unwilling to workcompanies see a staffing firm's consultant portfolio.
with sub-contractors and other partners. Due toSuch a system would allow companies to match their
these four issues it behooves companies toneeds to a firm's strengths in a simple and
continually revise their Preferred Vendor Lists. In thistransparent way. That's just what HotGigs'
article we reveal the smartest way of researchingOn-Demand Staffing Exchange offers hiring
and selecting staffing vendors for your Preferredcompanies. HotGigs gives companies an inside look
Vendor List, a solution so simple it's just a click away.into a staffing firm's consultant portfolio. The service
Growth of staffing vendor list More companies areis FREE to hiring companies--the fees are paid by the
creating Preferred Vendor Lists, according to astaffing firms. This valuable resource helps companies
staffing industry analyst report from March 2005.identify the firms they should add to their Preferred
The report stated that 48 percent of Fortune 500Vendor Lists, and provides a window into:
companies have implemented these lists, and the- The qualifications
number of companies pursuing this staffing vendor- Availability
consolidation strategy is expected to grow another- Rate ranges
25 percent in the next two years. The trend isn't- Experience ratings
surprising. Many companies want to minimize the- and geographic locations of a staffing firm's
number of staffing suppliers with whom they have toconsultants.
communicate, for a variety of reasons, including:The HotGigs exchange also lets companies post and
- Process efficiency (The Preferred Vendor Listbroadcast job requisitions and instantly research
enables streamlined communications with fewerwhich firms have consultants whose skills and
firms)availability match their core demand-then request
- Volume discounts (Staffing suppliers on theresources from firms within the exchange. Of course
Preferred Vendor List work with standardized orthere are other considerations to weigh, too, before
preferred pricing)adding a staffing supplier to the Preferred Vendor
- Masters, work orders, invoicing (MoreList, such as:
standardization simplifies the process of contract- The staffing vendor's track record with other
management)companies
- Reduced risk (Working with fewer firms results in a- The size of the firm
reduced number of co-employment and payment- The speed to fill positions
issues)- And the ability to adhere to staffing processes
- Cultural mindshare (A group of staffing suppliersBut the main consideration has to be a firm's portfolio
knows your company culture, policies, and processes)of consultants. Only HotGigs can instantly help a
How to add staffing vendors? As mentioned earlier,company research a firm's portfolio of available
despite the upside of the Preferred Vendor List,consultants. The HotGigs system is positioned to
companies continually have to research, add, andbecome the most powerful industry-wide research
delete staffing vendors based on changing needs andportal for hiring companies needing contract and
performance. In our own informal survey ofconsulting talent. Having access to HotGigs'
companies using HotGigs - On-Demand StaffingOn-Demand Staffing Exchange will be a driving force
Exchange, 50 percent of respondents reported thatin the future of staffing vendor selection.
they planned to make changes to their suppliers list in