Master Vendor Services Agreement: What Is It and Why Is It Important?
When a company needs to fill a position, they have two options: they can either hire someone directly or they can use a staffing agency. Staffing agencies are becoming more and more popular as they offer a quick and easy solution to companies seeking employees. However, when a company works with multiple staffing agencies, it can become challenging to maintain a cohesive and efficient hiring process. This is where a master vendor services agreement comes in.
What is a Master Vendor Services Agreement?
A master vendor services agreement (MVSA) is a contract between a company and a staffing agency that acts as a primary supplier of temporary employees. The agreement states that the agency will be responsible for sourcing and placing temporary workers for the company, while other staffing agencies are prohibited from submitting candidates. Essentially, the MVSA ensures that the primary agency is the sole point of contact for all staffing needs.
Why is a Master Vendor Services Agreement Important?
1. Streamlines the Hiring Process
By working with only one staffing agency, the company can streamline their hiring process. The primary agency will be responsible for sourcing and placing all temporary workers, which eliminates the need for the company to sift through multiple resumes and interview candidates from various agencies.
2. Reduces Costs
When a company works with multiple staffing agencies, they often pay a higher rate for temporary workers due to the markup from each agency. By using a master vendor services agreement, the primary agency can negotiate a lower rate for workers, and the company can save money on their staffing costs.
3. Improves Quality of Candidates
When the primary agency is the only source of temporary workers, they can focus on finding the best candidates for the job. This means that the company is more likely to receive highly qualified candidates that meet their specific requirements.
4. Increases Accountability
With a master vendor services agreement, the primary agency is held accountable for the quality of the temporary workers they provide. If a worker does not meet the company`s expectations, the agency must replace them at no additional cost to the company.
In Conclusion
A master vendor services agreement is a beneficial agreement for companies seeking temporary staffing solutions. It streamlines the hiring process, reduces costs, improves the quality of candidates, and increases accountability. By working with a primary agency, the company can focus on their core business while leaving the staffing needs to the experts.