Vendor Management System (VMS) Software Staffing Solutions

Vendor Management Systems (VMS) are now a common part of modern staffing. Read on to learn more about how VMS works, how to benefit from them, and how we can help manage the process.

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Back Office VMS Software Support

Managing and monitoring your Vendor Management System is crucial. Our team can take on the burden and do your VMS monitoring for you, so oversights and mistakes don’t cost you in the long run.

  • VMS ‘True Up’ services for most VMS systems
  • Correction and adjustment of hours
  • Best practice VMS management consulting

How Does A Vendor Management System (VMS) Work?

A VMS is a software or online application that facilitate the procurement of staffing services between end-clients and staffing vendors. Staffing agencies can view and manage open jobs and submit talent. It also allows both parties to collect requisitions, facilitate onboarding, automate transactions, store and collect hiring data, and provide reporting on metrics.

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Benefits & Advantages of Using A Vendor Management System (VMS) Software

While working with a VMS can be challenging, there are definite benefits and opportunities for staffing agencies who can successfully execute.

  1. New business opportunities. As more large companies use VMS system to fill positions, a steady supply of new business can help drive your growth.
  2. Efficient candidate matching. With VMS as opposed to traditional staffing, everything you need to know to fill the position is available immediately, and you can use analytics and sorting to respond to job openings quickly.
  3. Less communication gaps. Communication delays can occur at staffing firms if a client isn’t able to contact the right person. But with the help of VMS proxy or delegate features, coworkers can step in and ensure seamless communication flow.
  4. Improved tracking and data. A VMS helps staffing agencies to track the entire candidate lifecycle down to granular levels. Analytics such as number of calls required, speed to deal, turnover rates, bottom line cost, etc., can help staffing firms improve processes.

Types and Capabilities of Vendor Management Systems


Helps facilitate due diligence processes for selecting staffing vendors and services.

Vendor Onboarding

Support enrollment and registration of new staffing vendors in the system, including access and permissions.

Performance Management

Monitors and evaluates vendor performance in quality and reliability.

SLA Management

Describes and outlines the level of service agreed upon by the staffing vendor.

Financial Controls & Compliance

Enables you to set up spending limits and budgets to reduce compliance risk related to vendors.

Relationship Management

Ensures effective client-supplier relationships for mutual benefit.

Contract Management

Manages the lifecycle of a contract including renewal period, amendments, and termination.

Learn More With Our Staffing VMS Software Resources

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6 VMS Management Best Practice Tips for Staffing Owners

Learn VMS management best practices from Tabitha, a Funding Reconciliation Specialists who helps clients with VMS management.

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Challenges, Benefits, and Best Practices for Working with VMS/MSPs in Staffing

While working with a VMS/MSP has its challenges, it can also benefit staffing owners who do it right. Read on to learn the challenges, benefits and best practices of working with VMS/MSPs in staffing.

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A vendor management system or VMS is a web or software application that helps companies find, engage, and manage contingent and contract labor. Staffing agencies can compete for job listings.

A managed service provider or MSP is a third-party business that manages the
temporary work procurement for companies. Many MSPs use VMS systems to manage this, so the terms often go together.

VMS and MSPs sometimes have a negative connotation in staffing stemming from challenges like lower profit margins, lack of personal connection, stiff competition for jobs based on price, and hiring challenges.

Some best practices for managing a VMS would be to hire a dedicated VMS recruiter (or several), compare time weekly to see if the system matches what you know to be true, review all rejected time immediately, make sure all entered rates are correct, account for fees and discounts, have a central mailbox for communications, and upload all documentation before a new hire starts.

Staffing agencies utilize vendor management systems (VMS) to streamline the process of managing client relationships, candidate placements, and billing. These systems automate tasks such as candidate sourcing, timesheet tracking, and invoice generation, enhancing efficiency and transparency in staffing operations.