If your organization employs temporary and
contract workers, you may have considered appointing a company to manage this
on your behalf. You may have heard the terms master vendor and neutral vendor,
but do you know what the main differences are? To help with this, we have put
together this guide to highlight the main differences.
Let's start by understanding the concepts of
the master vendor and neutral vendors.
Under the master vendor model, a company
retains only one recruitment agency for all its hiring requirements. Master
vendors try to fill vacant seats with their candidates. If this is not
possible, release it to other competing recruiters, sometimes called Tier 2 to
fulfil the vacancies.
A neutral vendor is an independent advisor that
is not affiliated with any recruitment agency, so they do not have any conflict
of interest or bias. They work with a network of agencies and therefore, have a
Now let's take a closer look at the main
differences between neutral and master vendors to help you decide which model
is right for you and your temporary recruitment process.
Neutral Vendor vs Master Vendor
1. Point of Contact
When you opt for the master vendor recruitment services, you choose ease of operations
as there is only one point of contact. You just need to talk to your master
vendor for all your recruitment needs. The onus of finding the right candidates
through their networking entirely lies on the master vendor.
Whereas, in neutral vendor model, you will have
to assign the task to many vendors to get the job done.
2. Close Partnership
Under master vendor recruitment services, the two teams from the organization and the
master vendor collaborate to work in close association. The staffing agency
works as an extension of the organization instead of just being a vendor.
Depending on your needs, master vendors can function via onsite, near-sites, or
even virtually as the strategic partner. This leads to immaculate planning,
top-notch issue resolution, process improvements and quality assurance.
Since there is no such arrangement in a neutral
vendor model, there is no close partnership or collaborative work environment.
3. Robust Dashboards
Master vendors work closely with the HR teams
of the organization to design the required dashboards. The dashboards help the
businesses to analyze and carry out ongoing business fulfilment assessment,
leading to greater productivity and efficiency.
Since the scope of neutral vendors are limited,
their profile remains limited to sending candidates through their reference or
4. Customizable Programs
The master vendor listens to and works with
clients to ensure that their staffing program is designed to meet their specific
needs. Best staffing agencies like Weavings,
take pride in having a customer-oriented approach and are always willing to
customize hiring plans as per the client's requirements.
Whereas, since the association of the companies
with the neutral vendors is short-term and ad-hoc based, customization of
hiring programs is not possible.
5. Professional Support
The master vendors are highly organized,
offering complete array of services as expected from a professional company.
This includes billing, onboarding and offboarding compliance, overall
compliance monitoring, quality assurance, rate verification and contract
monitoring to ensure full supplier compliance for service, insurance and
Neutral vendors work in peace meal style and
they are not expected to offer professional support like a master vendor.
In conclusion, we hope this post: Neutral
Vendor vs Master Vendor Recruitment Model, has helped you gain the right
perspective about the prevalent hiring models. Since every organization is
different and has unique manpower needs, you should weigh the pros and cons and
choose the right model for your company.
If you need help in your decision making, our
specialists will be happy to help you by understanding your needs and offering
the best solution to you. Feel free to get in touch with us today!