VMS Recruiting: How Does It Help Staffing Firms Grow?


Vendor Management System, abbreviated as VMS refers to the software systems, websites facilitating recruitment, online applications, and staffing functions. With the help of VMS recruiting, staffing firms can be more capable in order to scale their business, filling more vacancies by sourcing more candidates, and building a robust talent pipeline. In this blog, you will be knowing the aspects of VMS recruiting software. In the end, you will be able to figure out the answer to why should a staffing agency use a VMS recruiting tool? How can VMS recruiting software help in improving the staffing agency’s efficiency? Is it a good fit for your firm? Find all the answers as we tell you more about VMS recruiting and also how it works.

What is VMS Recruiting & How Does it Work in Staffing?

The vendor management system helps in enabling staffing suppliers such as recruitment agencies and Managed Service Programs (MSPs) in order to procure a contingent workforce for employers and provide other staffing services. VMS recruiting supports facilitating talent management, supplier management, as well as SOW model sourcing and management.

VMS recruiting is commonly popular for temporary staffing. Although, a few recruiters also use it in order to achieve permanent staffing solutions. Hiring top candidates through VMS recruiting is compatible with enterprise staffing that includes high volume staffing needs, and quick turnaround time with lower margins.

A VMS recruiting (vendor management system) allows MSPs (Managed Service Programmes) in order to run contingent workforce programs. Also, it helps in managing all staffing-related processes online. Managed Service Programmes and recruitment agencies can provide a vast range of hiring services through VMS recruiting support which includes the creation of job needs, communication of staffing requisitions to suppliers, sourcing, interviews, selection, job offer, billing, and management of timesheets.

How Does VMS Recruiting Help Staffing Agencies to Grow? 

  • VMS recruiting builds a level playing field for all staffing firms. Whenever there is a requirement for top candidates, all staffing agencies get notified via the VMS. Also, they have an equal chance to submit suitable candidates. 
  • Staffing firms can easily get instant details on the firm’s job needs via VMS. It helps staffing companies to save a lot of time and to fulfill a high volume of hiring demands quickly. 
  • VMS recruiting allows staffing firms to achieve high volume hiring demands as soon as possible. Also, with the help of VMS, staffing firms may quickly get details about a few factors such as job skills, location of the opening, educational qualifications, nature of employment, etc.

What Are the Key Features of Top VMS Recruiting Software?

VMS recruiting has recreated the hiring process. Also, it has changed the way hiring managers or recruiters use digital technology. VMS can be defined as a medium that helps source candidates to fulfill job requirements quickly & simplify payroll management and other functions for staffing and recruiting. Here, let’s acknowledge the most significant features of VMS recruiting software below.

Feature 1: Applicant Tracking Function

VMS is a powerful software that comes with applicant tracking features. It allows hiring managers and recruiting leaders to acquire top candidates from a pool. from the moment when a requirement is created to onboard an already selected candidate, VMS takes automated actions and eliminates tedious compliance functions. It helps to make the hiring process more effective that activating and advanced workflow without delay.

Feature 2: Policy Obedience

A VMS software is used to establish well-managed procedures across the firm constantly. Even if the procedures differ from one another because of the differences in geographies, brands, departments, and divisions, A good VMS software gives you the liberty to implement and manage all the programs accordingly. And, the policy compliance system helps to meet local as well as national government policies, Thus, it enhances organizational efficiencies.

Feature 3: Workforce Visibility

Working with a temporary or flexible workforce can be tricky and challenging in order to maintain visibility and compliance. VMS recruiting helps to take a well-managed and systematic approach to managing a flexible workforce. Vendor management system software provides cost-saving features, timely decision making, operational efficiencies, compliance, and total workforce visibility.

Feature 4: Data Management

In VMS recruiting, vendor management software provides access to all the relevant details regarding the workforce. VMS software helps in analyzing the available data results as it helps to estimate the current program, and measure its efficiency & success. Also, it makes adjustments for better performance.

Feature 5: Complete Reporting

A robust VMS recruiting process enables complete reporting based on data-driven insights about the success of workforce programs. VMS recruiting allows a specific firm to accurately evaluate the time as well as cost, quality, quantity, and compliance factors of the contingent workforce and make better decisions for the future.

VMS Recruiting: What to Look for in a Vendor Management System?

Throughout VMS recruiting, there are a few primary functionalities that you should consider while choosing the appropriate VMS software for your business.

Performance & Risk Management:

Assessing new vendors must be automated. Also, measuring risk levels must be given automated scores. Thus, make sure, your VMS is able to track vendors based on risk & performance.

Vendor communication & collaboration

In VMS recruiting, make sure the vendors are able to securely provide documentation and all the related information to your business. With the help of an appropriate VMS (vendor management system) portal, you and your vendors can talk and collaborate before, throughout, and after contract periods.


In order to perform VMS recruiting, whatever vendor management platform you choose, it should be able to integrate with multiple business software solutions such as payroll software, and other risk intelligence solutions.


You must know that an ideal vendor management system in VMS recruiting should allow users so they can report on vendor-based processes. It makes it easy to relay valuable information to management.

VMS Recruiting: Why Should You Choose Vendor Management System?

In VMS recruiting process, the Vendor management system can benefit your business in a wide variety of ways. These include:

  • Vendor management systems make your business more secure and compliant. Also, it minimizes the risks in the process. 
  • With the help of VMS software, you can manage the performance of vendors and suppliers.
  • VMS software ensures that all invoices, billing rates, contracts, and payment options are standardized. Users can also upload and manage checklists and forms, as well as, resumes, certifications, and IDs. 
  • There are tons of other benefits of VMS software. It makes the organization more efficient, saves time, pinpoints instances of overspending, makes workflows completely visible, reduces business costs, and increases productivity.

Final Words

Ultimately, VMS stands for vendor management systems. It is a kind of software or online application that ease the procurement of staffing services between employers and staffing suppliers. Moreover, during the VMS recruiting process, the vendor management system (VMS) presents an effective business opportunity for staffing firms. With the right approach to VMS software, it can be the most part of your staffing business. In this blog, I have explained all the aspects of VMS software.

The vendor management system (VMS) is a series of planned and tactical activities that a firm use to manage and collaborate with vendors. This includes setting objectives, negotiating contracts, establishing vendor selection criteria, and strategizing for risk reduction. Also, it includes controlling for cost and delivery.

Following steps are considered the best way to create recruitment with the vendor management system or VMS recruiting:

  • First of all, create a fully dedicated vendor management team. 
  • Next, organize possible suppliers and vendors.
  • Confidentiality.
  • Risk management.
  • Effective communication.
  • Place a Premium on Value.
  • Build a long-term strong relationship

VMS stands for Vendor Management Systems. It is a software or online app. This software is responsible to facilitates the procurement of staffing services between employers and staffing suppliers. VMS systems usually feature talent management, supplier management, and SOW project sourcing and management as well.

Applicant Tracking Systems, abbreviated as ATS, and Vendor Management Systems, abbreviated as VMS, are both known as 'recruitment tools' but serve various different purposes. An ATS (Applicant Tracking System) shows the relationship between a firm and the candidate. On the other hand, VMS recruiting is about the relationship between a specific firm and its staffing provider.

Following are the five prime benefits of VMS recruiting:

  • Improvement in vendor selection. 
  • Centralized contract management. 
  • Negotiable rates & better value.
  • Smooth performance management. 
  • Strengthen supplier relationships.