The primary purpose of vendor management services (VMS) is to provide clients with a primary point of contact for any and all staffing needs. A VMS helps to control the flow of job orders to and from the supplier community, giving the clients the ability to track and control spending on necessary resources while also ensuring that the needed requirements are being met in a timely and cost-efficient manner.
The contingent workforce is vital to the success of these entities. This is a provisional group of workers hired by a firm to participate on daily work assignments on a temporary basis (commonly known as freelancers, independent contractors, independent professionals, and temporary contract workers). VMS is a type of contingent workforce management and there are several other terms associated with VMS, all of which are relevant to the contingent workforce or staffing industry.
This arrangement provides employers with a simple way to find qualified staffing when required from any number of local agencies across the nation. This also helps to measure the quality of service that staffing companies are providing to their clients, but it takes a great deal of effort from clients to manage the literally hundreds of staffing vendors that provide such services.
Managed Service Providers aid staffing companies
The managed service providers (MSPs), many of whom originated from staffing agencies, realized their need for employing agencies, used their own expertise when it came to managing many of these programs. Due to their own background in providing temp staffing services, they understand many of the intricacies involved in the process. Like most other companies, they also understand that there are certain risks and exposures involved, and the need to purchase staffing insurance to protect their investment.
This entire process gives them the ability to find the best candidates for the staffing agency while focusing on speed of delivery, all associated costs, and reliability of the candidates and the program. This process has proven to increase efficiency, reduce many of the costs involved and also increase the level of competition. In the end, having vendor management services can easily make many of the difficulties associated with the staffing industry a lot easier to deal with.
With workers compensation claims on the rise, state governments and insurance companies are scrambling to find a balance between a worker’s rights and an insurer’s rights. Your clients rely on you to find them the most affordable policies for their clients’ needs, alongside workers claims management to help them weed out employees who try to take “paid” vacations.
Don’t Stop at the Policy
The policy isn’t all that matters. As an insurance broker, you seek more than just a great deal. You’re the middleperson, and you need to ensure that the wholesaler with whom you work can address all of your clients’ needs, including workers compensation coverage for high-risk employees. This coverage is hard to find, which makes it a lucrative market for your agency.
Why Proper Management Is Important
This isn’t your only concern, however. On the East Coast, New Jersey and New York are embroiled in legislative changes to workers compensation systems, which complicates the claims management process. You’re the agent. Your job is to find the policy; it’s the policy issuers job to understand the legal mumbo-jumbo.
A wholesaler that offers workers claims management helps you and your client. By providing educational programs designed to turn your clients into worker’s compensation whizzes, you’ve just brokered the perfect insurance policy and know-how to go along with it, which, in turn, increases your client base.
A staffing company is considered essential in today’s market for any business in need of temporary employees to cover the position of a regular employee who, for whatever reason, is unable to report for work. Their primary goal is to develop relationships with employers in order to place qualified individuals in any positions for that employer when a vacancy occurs. It’s the job of the staffing company to help fill short-term and long-term positions and, at times, provide direct placement assistance for employers.
Starting a staffing company can actually be a much easier endeavor than many other businesses when it comes to start-ups. In general, a staffing company requires fewer licenses and needs only to address minimal requirements in order to proceed with licensing and permits. Though the licenses and requirements are few, the requirements must be met in order to operate the business legally and place applicants with business clients. Staffing insurance is an important part of this plan.
Keeping it legal
Just like any other business, a temp agency must have a legal business structure in place. In many cases it’s preferable for the company to have a corporate entity that protects the owners from legal liabilities that may result from any errors and omissions conducted by their placed employees. They may elect to have a partnership or corporate business structure, however the business structure doesn’t have to be chartered within the state in which it operates.
Once it has secured its legal business structure, it must then register its operations with the state in which it will be operating. The registration process varies by state and requires a registration fee. Once completed, the state will provide the staffing company with a state tax identification number that must be referenced when paying the business’s taxes, including staff and employee withholding.
No business can succeed without insurance in place
Any business that farms out temporary workers needs a staffing insurance policy that will help protect the company from liability issues and also aid the company in meeting its legal requirements. Most staffing company start with a general liability insurance policy, as well as workers’ compensation for its full-time staff members. Workers’ comp insurance is especially important when a staffing company offers long-term staffing services.
Perhaps your company has seen some of the best people, in terms of capability and performance in the workplace, move on to more lucrative positions with other companies. And it may not always be about money. Employee retention these days has a lot to do with perks, such as healthcare provisions and other enticements that make a job more appealing.
Due primarily to stiffer competition in business, you may be finding it more difficult, as a cost-conscious organization, to offer higher wages and more employee benefits in San Francisco these days. But compensation and benefits are the two main factors behind why a person stays at one job for the long haul, along with enjoying their work and being in a sound and peaceful work environment.
A Total Rewards program benefits employees and employers alike
This means you may benefit by providing, or implementing, some type of “total rewards” program that encompasses not only compensation and benefits but also personal and professional growth opportunities and a motivating work environment.
Most employers have had to find alternative forms of rewards that cost less to implement but that still motivate employees to excel. You may need to create a team that brings expertise in finance, employment law, HR information and payroll systems, as well as someone to represent both, the middle and lower layers of management in your organization in order to accomplish this.
Secondly, organizations have become much more strategic in their management of human resources. For example, some larger companies now treat compensation as well as training as rewards that must be managed together (rather than separately by different HR teams). Smaller companies can usually designate one person to handle these matters.
Lastly, you should include a HR professional with extensive total rewards experience and the ability to develop policies and procedures. No organization wants to see talented individuals going elsewhere seeking better opportunities. Make your San Francisco employee benefits plan a key component of your business strategy.