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Master Vendor vs Neutral Vendor: Which Elevates Your Business?

Managing multiple recruitment vendors for the client

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 wider reach.

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 Recruitment Model

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 networking.

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 compensation requirements.

Neutral vendors work in peace meal style and they are not expected to offer professional support like a master vendor.

Wrapping up

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!

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