Vendor management services are provided by staffing firms primarily to place contract workers on temporary assignments. Large firms operating in multiple locations use a streamlined process featuring a single point of contact that allows them to employ and monitor workers at the local level. Staffing responsibilities can include:
- Screening, evaluation and recruitment of candidates, using local contacts
- On-site management if recommended (generally for workers in high-volume locations)
- Employment services, including employee payroll, taxes and insurance
- Development of any necessary materials the worker needs
Providing Workers With Insurance Coverage
Most states require a company having five or more employees to carry workers compensation insurance. This kind of insurance is well-suited to staffing agencies since contract workers are among the individuals they place. If a worker becomes ill or suffers an injury on the job, workers comp will cover him or her for medical expenses incurred, permanent disability and, where applicable, rehabilitation. The policy also provides death benefits.
Putting It All Together
A staffing agency experienced with vendor management services will ensure that workers are qualified for particular positions. Once hired, they will also have proper insurance that, in addition to payment of medical bills, will enable them to recoup lost wages if they are unable to work. The vendor management services program becomes the driver that makes it all happen.