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A vendor on premise (VOP) is a staffing solution where an agency representative is located at the client company’s premises to manage its contingent workforce. This program fosters a positive and supportive work environment to improve contingent workers’ engagement levels.

Effectively managing needs helps contingent workers feel seen, heard, and valued, increasing employee retention. Reduced turnover lowers hiring, onboarding, and training costs.

What Is a Vendor on Premise (VOP)?

A VOP is a comprehensive managed services solution created to streamline a company’s high-volume contingent workforce management and elevate supply chain efficiency. One provider oversees the workforce management for a business segment. This model is common in the following industries:

  • Facilities management
  • Hospitality
  • Manufacturing
  • Logistics
  • Industrial
  • Information technology
  • Finance and accounting
  • Professional and executive
  • Administrative
  • Call center
  • Retail

VOP responsibilities

A VOP handles the following responsibilities:

  • Recruitment: Identifying and attracting qualified candidates for job openings within a specific business segment.
  • Hiring: Completing interviews, background checks, and every other step to add the right candidates to the team.
  • Onboarding: Providing orientation and training for new hires to integrate within the organization.
  • Workforce supervision: Overseeing workforce operations to ensure efficiency and compliance.
  • Talent support: Addressing employee questions, needs, and concerns for greater job satisfaction.
  • Retention: Implementing strategies to keep talent long-term for enhanced workforce stability.

Differences between VOP and traditional staffing

VOP and traditional staffing differ in how staffing agencies manage and interact with contingent workers:

  1. Physical presence: VOP means a staffing agency is onsite at the client’s company. In contrast, traditional staffing has staffing agencies remotely managing contingent workers.
  2. Management responsibility: VOP involves outsourcing the entire contingent workforce management to the agency. Conversely, traditional staffing might have the client company managing certain parts of the contingent workforce.
  3. Talent acquisition and management: VOP can strengthen recruiting and talent management efficiency, improving time-to-fill and talent retention. Conversely, traditional staffing might require additional effort and resources for contingent workforce management.
  4. Communication: Because the representative is onsite, VOP facilitates direct communication and collaboration between the staffing agency and the client company. In contrast, traditional staffing often relies on remote communication methods.
  5. Scalability: VOP lets client companies adjust their workforces as needed. In contrast, traditional staffing might offer flexibility but require additional internal resources for contingent workforce management.
  6. Efficiency: VOP can reduce human resources teams’ workloads, freeing up time for focusing on strategic initiatives. In contrast, traditional staffing often requires human resources teams to handle parts of the contingent workforce, reducing time for other responsibilities.
  7. Cost: Since VOP costs often are tied to deliverables or project phases, they offer predictable budgeting. Conversely, traditional staffing costs can fluctuate because they usually are based on hourly or salary rates.
  8. Financial savings: VOP reduces administrative overhead, streamlines processes, and improves workforce utilization. Conversely, traditional staffing can require additional administrative effort, resources, and expenses.

VOP vs. MSP: Understanding the Differences

A managed service provider (MSP) is a third-party company that delivers, manages, and supports an organization’s IT infrastructure and services, including networking and security. A VOP and an MSP differ in scope, engagement, and focus:

  1. Scope: VOPs focus on providing onsite support, recruitment, and talent management for a contingent workforce. In contrast, MSPs typically handle ongoing IT infrastructure network management, cybersecurity, and technical support.
  2. Engagement: VOPs have an onsite, dedicated point of contact for managing contingent workforces. Conversely, MSPs generally have long-term contracts for providing ongoing IT support and maintenance.
  3. Focus: VOPs streamline processes for managing a contingent workforce, improving productivity, and reducing costs. In contrast, MSPs ensure smooth operations for a company’s IT systems and infrastructure.

When to choose a VOP over an MSP

A VOP is a good option for companies with the following characteristics:

  • High volume of contingent workers: Get help managing workforce complexities and fluctuating staffing needs.
  • Need for streamlined management: One point of contact simplifies communications and reduces administrative tasks.
  • Improved communication: A dedicated point of contact handling contingent workers’ questions, concerns, and feedback improves communication, engagement, and employee retention.
  • Increased flexibility: Quickly scale the organization’s workforce to adapt to changing workloads, project demands, and business needs.
  • Greater focus on core business functions: Internal teams can focus on their areas of expertise rather than administrative tasks relevant to contingent workers.

When to choose an MSP over a VOP

An MSP is a great choice for companies with the following concerns:

  • Lack of IT staff: Gain dedicated staff to manage the organization’s IT infrastructure.
  • Specialized expertise: Access experienced cloud computing, cybersecurity, and industry-specific IT experts.
  • Need for 24 – 7 support: Ensure IT systems are continuously monitored and problems are quickly addressed.
  • Cybersecurity solutions: Gain proactive threat monitoring for data and system protection.
  • Compliance: Navigate complex regulatory environments to ensure the organization’s IT practices meet industry standards.
  • Flexibility: Scale the company’s IT infrastructure to meet changing needs.
  • Cost effectiveness: Spend less on finding IT solutions without hiring in-house staff.
  • Predictable spending: Fixed monthly fees support IT budgeting.
  • Focus on core business functions: Free up time for focusing on strategic plans.

Hybrid VOP and MSP solutions

Combining a VOP and an MSP provides many benefits:

  1. Agility: Fast access to cloud resources for specific business needs supports scalability while maintaining control over core systems.
  2. Expertise: Access specialized support in cloud computing, network security, and disaster recovery.
  3. Security: Keeping confidential data and applications on-premise strengthens company control over cybersecurity and compliance.
  4. Reduced IT overhead: Outsourcing server maintenance, software updates, and security monitoring frees internal IT resources to focus on strategic initiatives.
  5. Cost savings: Leveraging economies of scale and specialized expertise reduces the need for in-house IT staffing and infrastructure.
  6. Business continuity: Migrating critical workloads between on-premise and cloud environments in case of emergencies or outages.

Why Turnover Happens: Common Causes in Contingent Workforces

Common causes of turnover in contingent workforces include:

  • Poor onboarding and training processes: Not receiving the same level of attention and investment as employees impacts organizational integration, performance, and feelings of alienation.
  • Misaligned job expectations or cultural fit: Not understanding the company’s mission, vision, and values or role expectations can cause feelings of not fitting in, leading to disengagement.
  • Limited communication between a staffing partner and the client: Lacking a clear understanding of the role, responsibilities, goals, and expectations contributes to frustration and feeling like an outsider.
  • Lack of engagement and oversight: Lacking clear expectations, performance feedback, and professional development opportunities can cause contingent workers to feel undervalued, unappreciated, and disengaged.

How VOP Programs Directly Reduce Turnover

VOP programs directly reduce turnover in these ways:

  1. Improved onboarding, training, and retention programs: Standardized and consistent VOP-led processes strengthen early engagement touchpoints.
  2. Onsite oversight and real-time problem solving: Immediate support for contingent workers and supervisors reduces miscommunication and absenteeism.
  3. Enhanced contingent worker engagement: Regular check-ins, feedback loops, and appreciation build a sense of team and belonging.
  4. Data-driven workforce management: Real-time tracking and analyzing attendance, turnover metrics, and productivity help anticipate and prevent attrition.

MSP Integration: How VOP Supports a Broader Managed Services Strategy

These strategies support VOP and MSP goal alignment:

  • Relationship building: Develop trust and respect for collaborative relationships.
  • Mutual benefit: The organization and the MSP should understand the value they provide to each other and how their goals should align.
  • Strategic alignment: The vendor services and MSP capabilities should support the company’s long-term strategic plans.
  • Risk mitigation: The VOP and MSP should proactively address and manage potential risks and challenges.
  • Contracts: Clearly outline the responsibilities, performance expectations, and service level agreements.
  • Goal definition: The company and the MSP should define their goals, objectives, and short- and long-term targets.
  • Communication: Structured communication channels and regular check-ins ensure stakeholders remain on the same page.
  • Performance reviews: Conduct regular performance reviews to evaluate progress, discuss challenges, and identify opportunities for improvement.

Technology and talent management

Vendor management system (VMS) software automates and streamlines external vendor management, including vendor selection, onboarding, performance tracking, and contract management. The benefits of VMS automation include:

  • AI-based features: Machine learning for vendor selection and risk assessment supports process optimization.
  • Mobile access: Users can remotely manage vendors.
  • Automated workflows: Automating contract management, invoice processing, and payment approvals frees time for employees to focus on strategic activities.
  • Streamlined onboarding: Automates adding vendors and tasks, such as collecting W-9s and recording vendor details.
  • Centralized data repository: Provides a single source of truth for vendor information, increasing organizational access and information sharing.
  • Improved collaboration: Centralized data and automated workflows support interdepartmental collaboration, including procurement, finance, and legal.
  • Enhanced control: Real-time visibility into vendor performance, spending, and risks supports decision-making and risk mitigation.
  • Improved compliance: Enduring vendors adhere to contractual obligations and compliance standards helps the company meet regulatory requirements.
  • Reduced costs: Task automation and efficiency improvement strengthen financial savings when managing vendors.
  • Data-based decision making: Data analytics relevant to vendor performance and spend data help organizations make informed decisions.

Why Anserteam Is the VOP Partner of Choice

The following are reasons why Anserteam is the VOP partner of choice:

  • Custom workforce management solutions: Anserteam’s managed staffing services build the team, bring the technology, and provide the expertise you need to succeed. Our streamlined, automated solutions reduce the administrative burden, offer consistency, and increase productivity.
  • Proven results in reducing turnover: Contingent workers at every location should be well qualified, accurately vetted, and consistently trained. Anserteam’s customized client BluePrints ensure staffing suppliers use consistent hiring processes.
  • Integrated MSP and VOP support across North America: Anserteam backs each staffing firm with technology, strategic analytics, and operational support across the United States and Canada, providing accountability, high-touch engagement, and market expertise that delivers superior talent. Companies gain access to the best staffing firms in their local markets and the efficiency and support of a large, international organization.

Contact Anserteam Today!

A VOP improves contingent worker onboarding, training, and engagement. Onsite oversight, real-time problem solving, and data-driven workforce management strengthen employee retention.

Contact Anserteam to learn more or schedule a workforce consultation today.