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Why Use a Neutral Vendor?

There are a number of recruitment operating models that you may be familiar with, including:

Managed Service Provider (MSP) firms are typically recruitment outsourcing organisations who are affiliated to, or own, a recruitment agency within their wider stable. MSPs will manage your recruitment, reducing the number of recruitment firms that are on your preferred supplier list, in most instances to direct supply towards their in house recruitment agency, while additionally looking at direct hiring tactics.

Master Vendor (MV) solutions are typically run by a dominant recruitment firm which is charged with filling all of a client’s temporary recruitment needs. Normally the MV will then farm out jobs to other recruitment firms at lower margins if they’re not initially able to fill the positions within a certain time period. Normally a Master Vendor will try and dictate candidate pay rates, margins and commercials with the client as they are the clients only route to market.

Direct Supply is where a client deals directly with a panel of recruitment agencies. This can get complicated very quickly, with each recruitment agency working to their own individual terms and conditions, rates and margins. Without careful and diligent control over the panel of suppliers and their rates, costs can quickly spiral out of control.

Neutral Vendor operates between recruitment agencies and a hiring organisation to help streamline and improve on how companies engage with the market. A Neutral Vendor will never deal with, or manage, temps directly, they instead will contract with a panel of recruitment agencies either alongside or on behalf of a client.

As a Neutral Vendor, Neuven has no commercial affiliation to any external companies, be that recruitment agencies, payroll companies or factoring organisations. This means that we can remain completely neutral to benefit both our clients and our recruitment agencies.

In essence, the neutral vendor approach introduces fair, open and transparent competition in to the marketplace where agencies compete on a level playing field regardless of their size. This means that Neuven can ultimately provide better quality candidates at a fair market price.

Customers who implement a neutral vendor solution for the provision of temporary staff, either through recruitment agencies or direct hire, will be able to achieve the following demonstrable outcomes:

  • Increased choice of candidates
  • Better quality of candidates
  • Significant cost savings (up to 20%)
  • Reduced exposure to risk
  • Increased fulfilment levels
  • Complete transparency
  • Better customer processes
  • Full visibility and control over spend
  • Increased local candidate and supplier engagement

Implementation of a neutral vendor model typically takes between 1-3 months. Implementation plans can range from wholesale change across all locations or specific regions, to a slow build up with different sites going live on an individual basis.

Most neutral vendors will have one or more technology platforms to support  workforce engagement and operations from shift fulfilment and payment.

Neuven’s neutral vendor model is designed to never cost clients money, either through the implementation or day to day operations. Whilst Neuven builds a small transparent transaction fee into our client arrangements, this fee is usually calculated as a percentage of savings. This supports our drive to generate savings on the client’s behalf.