Building a Better Solution
Disrupting The Old School Model
Impact recognizes that the staffing industry has a long-standing disdain for MSP/VMS models – and for very good reasons. With roots in staffing, the leadership of Impact set out to build a platform that overcomes the objections and resistance to this otherwise exceptional arrangement.
The origins of Vendor Management came out of purchasing. The goal was to drive down prices and control rogue spending by standardizing rates and controlling contracts. Noble goals, but well past their “use by” date. When people outnumbered jobs, leverage was on the side of procurement. The seesaw has shifted!
One point of contention is in the very way these groups are identified as “vendors” or “agencies” – or worse, “temp services.” Impact respectfully identifies our alliances as STRATEGIC PARTNERS. This is the first step in establishing a positive framework for collaboration.
In MSP/VMS (Managed Service Provider/Vendor Management System) programs, Strategic Partners are typically responsible for providing contingent workers to the program. Impact manages the overall program, including the selection and management of the various suppliers, which may include staffing Strategic Partners, independent contractors, and other service providers.
By using Strategic Partners in the Impact program, companies can benefit from the expertise and resources of specialized staffing firms, while also maintaining control and oversight of the overall program through governance and compliance.
Strategic Partners are REWARDED, not punished, for success. Typical MSP/VMS funding is through a percentage of the vendor’s invoice being paid to the MSP/VMS provider. Typical fees range from 2% to 6% or more of the invoice. The better the vendor performs, the bigger the haircut! Ouch!
Think logically about the psychology of this vendor-funded arrangement. Partners we work with are motivated to deliver results. Wouldn’t it be better to provide an incentive for successful performance instead of a staggering bite out of the invoice? If you are interested in becoming a Staffing Partner, reach out to us and let us explain why we offer a better option.
We understand the traditional confrontational structure between MSP/VMS and staffing providers.
Impact is committed to a better relationship. Move up from confrontation to collaboration, in the true definition of partnerships.