03 Sep 2024

Master vendor model as a form of on-site management

Master-vendor model sounds like a tongue twister. Like something out of a film or like a machine. In reality, it is a Master vendorwhich covers the entire Recruitment managed for a company. There are various advantages and disadvantages. We will discuss these in this article, as well as the Master vendor model on site.

Master vendor model: Efficient recruitment directly on site

As this is a local In-house management but is still outsourced, this is known as the master vendor model. So basically an outsourced third party that you have more control over. It's more like a partner company that works with you. 

Since this company does business with you in this way, it is not responsible for the Master vendor It is very important to us to satisfy you and provide a good service. 

Master vendors can speak directly with the company about their needs, and the Master vendor has an insight into the company as he is on site, which helps him to select the right personnel - the Determination of personnel requirements is for the Master vendor therefore easier.

The recruitment of staff is easier, as employees and the Master vendor are on site. New employees can therefore benefit from a Master vendor be included in the company. Some further advantages of the Master vendor model are that you have more control over the recruitment process than with a third party who is not on site. 

On-site management is easier, as you can personally contact the Master vendor can talk to you. The recruitment process is more efficient as only a company that knows all the vacancies and the company's needs is recruiting for you. Some risks of the Master vendor model are:

  • The company, which has a Master vendor model could be too dependent on the master vendor.
  • The Recruitment is one-sided and less innovative, as there is no competitor.
  • The salaries of the employees are very low, as the Master vendor often takes a large share of the money for itself. As a result, it is often not possible to recruit highly qualified employees, and newcomers are more likely to be hired.
  • You are not as fast as other self-employed people Recruitment agencyas they are more closely bound by the company's rules and regulations.
  • Often, the rules for hiring employees are very strict and one-sided, and the hiring process is inflexible.

If the service of the Master vendors is bad, you cannot quickly switch to another one. Recruitment agency change. As this is more of a partnership and the Master vendor is on site, you as a company have to resolve the whole thing. 

This can lead to complications and even extensive legal contracts which must be resolved.

On-site HR management has modernised in the digital age. It is fast-moving and simpler than in the past. The Master vendor hires the employees, and since he does this on site, he usually Key-cards, access cards and the like are available.

The Master vendor can also tell you a little more about the company than a normal Recruitment agency and is more of a partner to the company. He pursues a holistic Personnel managementThis helps to ensure that the employee is trained more quickly and conscientiously.

The master vendor makes Integrated personnel management and so every position is filled by him. This is helpful because companies do not have several different Recruitment agencies positions, but need to have a single Master provider. 

This is then used to set various roles. This makes things clearer and easier to handle.

HR management also takes place on site and not just digitally or elsewhere, which keeps resources in-house. This means that more Cybersecurity when it comes to the exchange of personal data with the Master provider goes.

How can you work well with a Master vendor work together? This is no easy task, because the Master provider is located on your company premises and is always with you. You need to see them more as a partner and involve them in many business processes. This is important for successful collaboration with a master vendor.

Both master vendor and individual contracts have their advantages and disadvantages. Here are some advantages of Master providers:

  • It works like In-house managementwhich is an advantage for companies because of the security of the data and the control they have.
  • They are on site so that the Onboarding of employees is much simpler.
  • The Master vendor knows the company guidelines inside out and can inform new employees about the work regulations.

Here are some of the advantages of individual contracts:

  • Recruitment processes are flexible.
  • Efficiency in personnel planning, as they can use innovative methods to find candidates.
  • These are independent Recruitment agencywhich can be replaced if they are no longer needed or no suitable candidates can be found.
  • Many can be used simultaneously, which offers more flexibility and increases the chances of finding different candidates as different sources are used.
  • They need to show that they can offer the best service, as there is a lot of competition and the company doesn't necessarily have to choose them.

Recruitment is easier as it is quicker and simpler, but perhaps not as thorough as with a master vendor.

You need to know which Recruitment processes suit you as a company. It depends on what is most important to you. Flexibility vs. security, innovative recruitment vs. controlled/strict recruitment or internal preference vs. external quick service.

These are things that Recruitment have to be taken into account. We can support you with HR consulting in these areas and help you to find the right Master vendor or to find contractual partners for individual contracts. Cooperation with a Master vendor is not a bad idea, depending on the circumstances, and can be a good strategic workforce planning option.

Contact us Zeitarbeit International for your individual Personnel Consultancy.