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6 Reasons Why You Should Be Using Vendor Neutral Recruitment In 2022 and Beyond!

6 July 2022

Saving costs on temporary workers is more important than ever as companies struggle to find the right quality candidates due to staff shortages caused by Brexit, the pandemic and skills shortages. If your organisation hires temporary and contract workers, you may have considered appointing a company to manage this on your behalf.

Risk of recession due to increased inflation is influencing every organisation, putting pressure on their procurement strategies. Labour costs are sometimes one of the most significant line items on a company’s expenditure. As a result, a successful cost-control strategy must properly balance resourcing and cost constraints.

A Neutral Vendor can help you streamline your temporary recruitment and make things a lot easier and more efficient for your organisation. A neutral vendor is not a recruitment agency, they form partnerships with various recruitment agencies and when a client needs vacancies to be filled, the neutral vendor goes to market to their different partner agencies in order to find the most suitable and cost-effective candidates to fill the requirement. There is no conflict of interest between the neutral vendor and the agency partner.

6 Reasons Why You Should be Using Vendor Neutral Recruitment Services in 2022 and Beyond?

1. Visibility and Control

Vendor Neutral Recruitment provides complete visibility and control by managing the recruitment process from point of order through to invoice. Vacancies can be added onto on-line recruitment software and will be distributed to agencies to ensure that vacancies are filled.

All hours will be tracked through on-line recruitment software, vacancies will be authorised and approved and invoices are generated and sent electronically.

Management information is generated in real-time and details spend break down by site, agency, category of worker and tracks tenure for the Agency Workers Regulations, demographic information, time to fill and rights to work in the UK.

2. Legal Compliance

On-line recruitment software stores information such as Rights to Work in the UK, Driving Licences, Health and Safety Training and also tracks tenure in line with requirements for the Agency Workers Regulations.

Agencies are independently audited to ensure legal compliance.

3. Supplier Management

A panel of agencies will be proposed and agreed on based upon a client’s existing agency providers, hence reducing risk of change. The agencies will be evaluated based upon process, financial stability, geographical coverage and legal compliance and a panel of suppliers will be chosen for each site, business unit or division. Where there is a lack of suppliers, new ones will be proposed based upon existing experience.

4. Improved Performance

Agencies will be measured in line with an agreed Service Level Agreement. Agencies will be given quarterly reviews and 360 degree feedback. Their individual performance will be benchmarked against the entire supply chain. Agencies that perform well will be rewarded with more business by moving up the league table and those that do not perform will be relegated or removed entirely.

5. Cost Savings

Direct Savings – direct cost savings in the region of 6% to 12% will be delivered by standardising pay rates and margins and driving out overcharging on Employers National Insurance and Holiday Pay which agencies often miss-calculate.

Indirect Savings – indirect savings will be delivered by reducing the number of invoices down to one-consolidated weekly invoice. This invoice will be pre-approved and can be automatically downloaded via CSV into a client’s back office system.

6. Brand Management

In a candidate short marketplace, managing brand is important to ensure that the candidate experience is the best possible. If candidates experience is poor via agencies then they will assume the same of your business. We ensure that this experience is consistent and therefore candidates will view your business in a positive light.


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