A Study of VMS Best Practices

Eric Gregg, CEO & Founder

Inavero

Get the Facts and Rethink Your Fears

6,000+

people killed

8 people killed

12 people killed

24 people killed

150 people

killed

About the Research

• Online survey hosted by Inavero

• Sample obtained through Bullhorn

customer contact database

• Results based on 608 responses

• Survey fielded April 13 through April

21, 2016

Profile of Study Respondents

58%

47%

9%

Centra lized

Trad itiona l b ranc h model

Offshore

Model(s) Used to Service VMS Customers

75%

42%

39%

36%

35%

30%

28%

27%

17%

15%

13%

11%

11%

7%

Tec hnology/ IT-rela ted

Financ e/ Ac c ounting

Senior Manager/ Exec utive

Engineering rela ted

Offic e/ c leric a l

Marketing/ Crea tive

Industria l

Other Professiona l Jobs

Other hea lthc a re jobs

Sc ienc e rela ted

Attorney/ Para lega l

Allied hea lthc a re

Nursing

Physic ian

Sectors in Which Candidates are Placed

91%

85%

24%

22%

12%

Direc t hire/ Permanent

p lac ement sta ffing

Tempora ry and c ontrac t sta ffing

MSP (Master Servic e Provider)

RPO (Rec ruitment Proc ess

Outsourc ing)

VOP (Vendor On Premises)

Services Offered

VMS is Large Percentage of Revenue and

Growing for Most Firms

76%

% of Firms Who Submit Candidates Through VMS

30%

% of Average Firm’s Revenue Obtained Through

VMS Placements

50%

% of Firms Where VMS Revenue is Growing

Satisfaction with VMS Process is Hard to Find

4% Extremely Satisfied

16% Extremely Dissatisfied

The Seeds of VMS Discontent for Staffing Firms

62% DissatisfiedAbility to ask

clarifying questions

53% DissatisfiedMetrics VMS uses to judge success

46% DissatisfiedTime submitting

candidates

43% DissatisfiedQuality of info in

ATS for VMS orders

36% DissatisfiedAbility to search

ATS for VMS candidates

34% DissatisfiedEntry of VMS job orders into ATS

Increasing Fill Rate Tops List of Staffing

Firm VMS-Related Goals

73%

52%

52%

51%

46%

Inc rease fill ra te

Improve marg ins on VMS orders

Lower time to fill

Imrpove submit to interview ra tio

Inc rease tota l number of VMS orders rec eived

Staffing Firm Goals for Improving VMS Process

Common Barriers to VMS

Success

“In this world nothing can be said to be certain, except death and taxes.”

When it Comes to VMS, Benjamin

Franklin Said it Best…

“….and that a lack of direct contact with hiring managers will make it difficult to deliver the best talent….”

“….oh, and that the criteria used to judge success by VMS programs will make it difficult for staffing firms to attain an acceptable margin.”

“….and, of course, that VMS programs aren’t going away – so get used to it.”

Margin Pressure from VMS Programs Tops List of

Barriers to Improved Profitability

59%of clients list two or

more barriers to increasing VMS

revenue and margin

68%

27%

27%

25%

23%

21%

VMS c riteria keeps b ill ra tes

and marg ins too low

Poor da ta qua lity

Inab ility to sc reen c and ida tes

in a c ost effec tive manner

Lac k of metric s on VMS

Opera tions

Interna l c ost of c urrent VMS

p roc ess

Mismanagement of interna l

resourc es

Biggest Barriers to Increasing VMS Revenue and Gross Margin

Outside of Staffing Firm’s Control

Within Staffing Firm’s Control

Biggest Barriers to Increasing VMS Gross Margin

65%

42%

37%

33%

25%

20%

16%

15%

Inab ility to have c ontac t w ith

hiring managers

Ava ilab le/ suitab le c and ida te pool

is unpred ic tab le

Rec ruiter response time and

ava ilab ility

Delays in getting reqs into the

system

Lac k of streamlined / automated

system

Poor da ta qua lity

Lac k of metric s on VMS Opera tions

Inab ility to effec tively sc reen

c and ida tes

Biggest Barriers to Increasing VMS Operational Efficiency

Recruiter Response Time Biggest Barrier to

Increasing VMS Efficiency Under Firms’ Control

74%of clients report two or

more barriers hinder their ability to increase their VMS operational

efficiency

Outside of Staffing Firm’s Control

Within Staffing Firm’s Control

Biggest Barriers to Increasing Efficiency of VMS Process

Satisfaction with

Common VMS Platforms

ORS 480.385“…may not permit any person other than

the owner, operator or employee to use or

manipulate any pump, hose, pipe or other

device for dispensing the liquids into the

fuel tank of a motor vehicle or other retail

container.”

Just Because You Don’t Agree, Doesn’t Mean You

Don’t Have to Comply

67%

43%

43%

21%

18%

16%

13%

7%

6%

6%

Fieldg lass

Beeline

IQNaviga tor

Peop leFluent

ZeroChaos

PRO Unlimited

Ag ile-1

ShiftWise

Ec onometrix

Work Nexus

VMS Providers Utilized

Fieldglass, Beeline and IQNavigator Most

Common VMS Tools Staffing Firms Experience

1st Step – Optimize process for top 3 VMS tools

Most Common VMS Tools

Satisfaction Levels Are Similar Across VMS Tools

65%

62%

55%

71%

45%

61%

56%

60%

61%

47%

Fieldg lass

Beeline

IQNaviga tor

Peop leFluent

ZeroChaos

PRO Unlimited

Agile-1

ShiftWise

Ec onometrix

Work Nexus

VMS Vendor Satisfaction (% Satisfied)

Don’t confuse frustration with programs and frustration with

VMS software vendors

VMS Best Practices

“We didn’t do

anything wrong, but

somehow we lost.”Nokia CEO, 2013

Failure to Analyze and Evolve is a

Dangerous Game

How Do Your Recruiters Spend Their Day?

Source & screen (48%)

Asking job order clarifying questions(10%)

Receiving/routing orders (9%)

Entering Details in ATS(9%)

Formatting candidate submissions(9%)

Submitting candidates to VMS (9%)

Tracking VMS metrics(6%)

42%

Opportunities for Increasing Efficiency

of VMS Orders

Automation Spectrum

59%

57%

54%

49%

38%

33%

34%

34%

32%

37%

46%

46%

7%

9%

14%

13%

16%

21%

Initia l sc reening of potentia l app lic ants for VMS job orders

Formatting c and ida te submissions to meet fields required for spec ific VMS

Submission of c and ida tes through VMS

Entry of job order deta ils into your ATS

Rec eiving and routing of job requirements from VMS

Trac king of VMS-rela ted metric s (submissions, fill ra te, time to fill, etc .)

Approach to Completion of VMS Steps

Manua l Partly automated Fully automated

Those Leveraging Technology Report Higher

Levels of Satisfaction with Their Process

3Average number of steps a staffing firm has automated to

some extent

34%

43%

58%

1-2 Steps Automated 3-4 Steps Automated 5-6 Steps Automated

Percent Satisfied with Overall VMS Submission Process

20%

40%

60%

35% 55% 75%

Dissa sfac onwithProcessbyLevelofAutoma on

Where to Start?

HigherDissatisfaction

LowerDissatisfaction

Fully Automated

Fully Manual

12

3

4 5

6 1. Initial screening of potential applicants for VMS job orders

2. Formatting candidate submissions to meet fields required for specific VMS

3. Submission of candidates through VMS

4. Entry of job order details into your ATS

5. Receiving and routing of job requirements from VMS

6. Tracking of VMS-related metrics (submissions, fill rate, time to fill, etc.)

Greatest Opportunities For Improvement

Automating Repetitive Steps in VMS Process Can

Have Significant Impact on Outcomes

Hours to First Submit:

Fill Rate:32%

Increase

35% Improvement

Initial Screening of Candidates for VMS Orders

Hours to First Submit:

Fill Rate:33%

Increase

49% Improvement

Formatting Candidates for Submission Through VMS Tools

Automating Repetitive Steps in VMS Process Can

Have Significant Impact on Outcomes

VMS Metrics

VMS Metrics – Is Your Firm Tracking the Right KPIs?

92%

90%

89%

88%

87%

81%

80%

77%

77%

71%

VMS Job Reqs per Month

VMS Gross Marg in

VMS Fill Ra te

VMS Hires

VMS Interviews

VMS Time to Submit

VMS Submissions per Month

Admin Time to Submit VMS Cand ida tes

Perc entage of VMS Orders Responded To

Admin Time to Put VMS Orders in ATS

Percentage of Staffing Firms Who Believe Metric Is Important to Track

Majority Think All Metrics Important to Track, Far

Fewer Actually Track the Metrics

0%

40%

80%

70% 85% 100%

PercentageofFirm

sWhoTrackM

etric

PercentageofFirmsWhoBelieveMetricisImportanttoTrack

VMSJobReqsperMonth

VMSGrossMargin

VMSFillRate

VMSHires

VMSInterviews

VMSTimetoSubmit

VMSSubmissionsperMonth

AdminTimetoSubmitVMSCandidates

PercentageofVMSOrdersRespondedTo

AdminTimetoPutVMSOrdersinATS

Core to Your

Success

Potential Keys to Improvement

VMS Demand & Productivity Metrics

Mean25th Percentile 75th Percentile

3

20

5

8

10

10

6

1

10

15

11

54

17

28

34

35

27

2

36

20

13

85

20

48

60

60

35

3

55

28

VMS job reqs per month per rec ruiter

Perc entage of VMS job orders responded to

VMS submissions per month per rec ruiter

Time to First Submit (Hours)

(time to first submit)

Admin time to pull, enter and assign job req from VMS

(min/ order)

Admin time required to submit c and ida tes through VMS

(min/ submission)

VMS interviews per month per rec ruiter

VMS hires per month per rec ruiter

VMS order fill ra te

Gross marg in on VMS orders

3

20

5

8

10

10

6

1

10

15

11

54

17

28

34

35

27

2

36

20

13

85

20

48

60

60

35

3

55

28

VMS job reqs per month per rec ruiter

Perc entage of VMS job orders responded to

VMS submissions per month per rec ruiter

Time to First Submit (Hours)

(time to first submit)

Admin time to pull, enter and assign job req from VMS

(min/ order)

Admin time required to submit c and ida tes through VMS

(min/ submission)

VMS interviews per month per rec ruiter

VMS hires per month per rec ruiter

VMS order fill ra te

Gross marg in on VMS orders

VMS Response Time Metrics

Mean25th Percentile 75th Percentile

VMS Success Metrics

Mean25th Percentile 75th Percentile

3

20

5

8

10

10

6

1

10

15

11

54

17

28

34

35

27

2

36

20

13

85

20

48

60

60

35

3

55

28

VMS job reqs per month per rec ruiter

Perc entage of VMS job orders responded to

VMS submissions per month per rec ruiter

Time to First Submit (Hours)

(time to first submit)

Admin time to pull, enter and assign job req from VMS

(min/ order)

Admin time required to submit c and ida tes through VMS

(min/ submission)

VMS interviews per month per rec ruiter

VMS hires per month per rec ruiter

VMS order fill ra te

Gross marg in on VMS orders

Parting Thought

The Danger of Assumptions

How Assumptions Ruined Middle School Dating

My Assumption:

Being a drummer in a

band is pretty cool.

The Reality:

Being a drummer in the

band is rarely cool.

My Assumption:

This turtleneck makes

my sweater look even

cooler.

The Reality:

The turtleneck only

proves what the sweater

was already saying – I’m

not cool.

My Assumption:

This haircut makes me

look like Richard Marx

The Reality:

This haircut makes me

look like Richard Marx.Image: Eric’s file of shame

Questions?