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The Top 5 Benefits of Choosing a Master Vendor Solution

Businessman looking at road with maze and solution concept-1The contingent workforce landscape is constantly changing and with that so are the needs of companies who utilize contingent labor.  Partnering with a firm that can provide a solid Master Vendor Solution comes with many perks.


What is a Master Vendor Solution?

According to SIA, a Master Vendor Solution is when a staffing supplier that takes overall responsibility for providing clients with temporary staff.  All orders will usually go first to the master supplier to either be filled or distributed to secondary suppliers. Sometimes a master supplier will not only provide a significant portion of the temporary staff working at the employer’s site but also manage an organization’s contingent workforce program. 

So why go with a Master Vendor Solution? Here are the top 5 benefits. 





Having the ability to increase and decrease headcount on demand is one of the major benefits of a scalable workforce.  As the market constantly changes customers are faced with the challenges of ramping up and down in what can sometimes be a relatively short amount of time.  The flexibility of a scalable workforce also helps companies maintain their reputation when there’s a turn in the market. There will be unavoidable times when the market is volatile and mass layoffs may be necessary. Also, contingent workers can be used to fill the gaps when full-time employees must take a leave of absence such as medical, maternity and more.



Saving money is at the forefront of most customers’ minds. By utilizing a contingent workforce, companies are only paying a fraction of what they would for full-time employees as contingent workers typically don’t cost as much as a full-time employee (or FTE). Even in cases when the contingent worker may earn the same as the FTE, companies can still benefit from increasing contingent headcount without increasing the overhead cost typically associated with a full-time worker. Since staffing agencies are responsible for the burden of the contingent worker when it comes to benefits, employment taxes, workers compensation, unemployment and more, companies immediately save money by using a contingent workforce as they don’t absorb those costs. In many cases, especially that of a Master Vendor scenario, the staffing agency can become an extension of the company in which they are providing labor.  When this happens, companies can also find cost savings when it comes to  advertising and recruiting costs. In addition to referring candidates to their Master Vendor to fill open positions at a reduced cost, companies can also see immediate cost savings when implementing a Master Vendor solution that allows for the incoming agency to transition the existing headcount under a reduced mark-up or payrolling rate.



No two companies are the same and neither are their needs in terms of contingent labor. A Master Vendor should provide scalable customized solutions for a customer’s current and future needs. These customized solutions can come in many different forms such as individualized skill testing, specific onboarding (including drug & background screening), customized reporting and billing and quarterly business reviews.  Many Master Vendor solutions are customized with onsite management personnel as well as dedicated recruiters that serve as subject matter experts in a variety of industry skillsets. For customers with a large light industrial workforce, a customized lead or working supervisor program may be necessary. 

Many industries benefit from the use of interns, the designated Master Vendor can create a customized intern program which may also serve as a qualified talent pool for the customer’s future hiring needs.  For customers that have ongoing special projects the Master Vendor can create customized recruiting solutions to pipeline candidates for these short term roles. Depending on what is needed, there are countless customization options when it comes to using a Master Vendor.



A scalable workforce allows clients to focus on their core business.  By engaging contingent labor to satisfy entry level skillsets, customers are able to free up higher skilled labor to concentrate on more complex tasks. The use of a contingent workforce can also alleviate pressure on a customer’s internal recruiting team.  Scalability allows for a contingent worker to fill roles in the interim while in-house recruiting teams continue to source for candidates to fill full-time roles.  A Master Vendor partner should also share current trends and market data.  This intel will help customers create a strategy around their contingent workforce and permanent hire needs which is imperative in today’s competitive job market. 



A primary function of a scalable contingent workforce is that it’s aligned with the customers’ growth strategy. For example, for those customers in a manufacturing environment it’s necessary to have an agency engaged that can supply on demand talent in order to meet production demands.  As growth occurs it’s natural for the needs of the customer to change.  It’s important to engage with an agency that can answer today’s need for a Master Vendor solution but can also bring solutions such as MSP, RPO and Total Talent Management to the table for the future.

No matter what service a company chooses it’s important that they are engaged with an agency that will provide them with a scalable solution.  The scalability of a Master Vendor solution will streamline a customer’s contingent workforce program by providing cost savings, a customized approach and flexibility while also allowing the customer the crucial opportunity to focus on their growth initiatives.


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