For a long time, Preferred Supplier Agreements (PSAs) have been a staple for enterprises to manage their outsourced recruitment partners. Despite this, trends show that PSAs are no longer enjoying the popularity they once had. Many organisations are choosing to move away from these agreements favouring recruitment software such as TalentVine to find and manage recruitment agencies for their needs.
Why are PSAs seen as Outdated?
The simple answer is that with the rise of HR tech and vendor management platforms, employers no longer have to rely on a PSA to have pre-agreed terms and rates. Indeed, many TA leaders have reported that PSAs are too restrictive, and do not cover an adequate range of industries or job roles that they need to hire.
PSAs are often built upon past hiring needs. In a dynamic recruitment market, it can be a slow process to add new agencies to the panel when a specialist or niche hire is required. A recruitment marketplace can circumvent this by allowing agency access on a per-role basis.
What does the research show us?
Studies have shown that for hiring managers, the biggest factors that affect their decision to work with an agency are their depth of market knowledge, cost, ability to provide specialist hires, and access to candidates. All of these decisions can be better informed with a recruitment marketplace platform such as TalentVine. These answers also show that Talent Acquisition professionals prefer proven performance over past relationships, which are not cited as a major deciding factor.
In our PSA Report, we highlighted some of the major issues that organisations have with their Preferred Supplier Agreements. The most commonly cited troubles are listed below, as are the ways a Recruitment Marketplace addresses these.
The time taken to manage agencies
View, organise, manage and contact all of your agencies through one platform. Automatically share briefing documents or videos to all panel recruiters, reducing duplicated effort.
Hiring managers using non-preferred agencies
Add all hiring managers to your company’s team page, allowing you to monitor their roles and progress. We also ensure all agencies are compliant with your terms before submitting a bid, so you can focus on choosing the best agents.
The number of agencies
Contact agencies on a per-role basis, without needing to add them to your panel. Use our marketplace to identify the right specialist every time.
Identifying agency performance
Your Panel dashboard tracks and displays statistics for all of your agencies. Compare performance, fees, hire rates, and more.
TalentVine is a recruitment marketplace that provides solutions to all these issues, making an effective replacement or addition to any PSA. The flexibility afforded by the ability to access an entire network of agents on a per-role basis means that you can compare and connect with new specialist recruiters without jumping through hoops.
Our full PSA Report represents the views of 158 HR and Resourcing Professionals making over 200,000 hires per year.
This research provides a detailed insight into the state of preferred Supplier Agreements and their effectiveness.
You can read the full report here, or sign up to see how TalentVine is revolutionising the recruitment process.