Decoding the Differences: Neutral Vendor vs. Master Vendor in Contingent Workforce Management

If your organisation employs temporary and contract workers, you may have considered outsourcing the management of this process. You might have encountered the terms "master vendor" and "neutral vendor," but do you know the main differences between them? 

Firstly, let's define what a master vendor and a neutral vendor are.

A master vendor is a recruitment agency that takes full responsibility for filling job openings. They attempt to fill the vacancies with their own candidates and, if unsuccessful, pass them on to other competing agencies (known as the 2nd tier).

On the other hand, a neutral vendor is not a recruitment agency itself. Instead, it forms partnerships with multiple recruitment agencies. When a client requires candidates for job openings, the neutral vendor contacts its partner agencies to find the most suitable and cost-effective individuals. There is no conflict of interest between the neutral vendor and the agency partners.

Now, let's explore the key distinctions between neutral vendors and master vendors to help you determine which model might be more suitable for managing your temporary labour recruitment process.

Ultimately, the right choice for a company depends on their specific needs and goals for managing contingent workers.