It’s Time to Review Your Preferred Supplier List – Now!

It’s no mystery that every company wants to attract the highest calibre candidates, which is why a lot of businesses seek professional recruitment services to help resource staff. Many companies even opt to solidify their relationship with some agencies by adding them to a preferred supplier list (PSL), but rather than helping to maximise the performance of their recruitment policy, this can have a negative effect if not managed properly.  Here we’ll look at how to get the best results from your recruitment strategy and how a correctly managed PSL can help you stay one step ahead of the employment game.

Review Your PSL Regularly

It’s a common notion among the recruitment industry that once you’ve managed to sneak onto any given PSL; you won’t have to do much leg-work in order to stay there for the next year or so. Too many businesses fall into the trap of thinking that as soon as they’ve created their list of preferred suppliers, its job done until 12 months down the line when they’ll next review it. With this being the case, it makes sense to ask who the real beneficiaries are in creating a PSL in the first place. Unless reviewed regularly and kept in check, your PSL could see any number of agencies taking a free ride on the back of your company for the foreseeable future.

The first and most logical step in effectively managing your recruitment policy is to review your PSL regularly, thereby keeping recruiters on their toes and delivering the best possible results at all times. To do this, you’ll need to set in place some kind of service level agreement with your chosen providers, and lay out a few key performance indicators (KPI’s) to monitor the most effective recruitment channels.

Deciding How to Monitor Performance – KPI’s

Okay, so you’ve decided to review your PSL every 4 months – perfect! Now it’s time to decide how to measure the level of each supplier’s performance in order to maximise your recruitment strategy. You may look at your list – when the time arrives to review it – and think, since each agency on your books has supplied you with X number of potential candidates, that there’s no reason to change tactic. But by doing this you’ll be ignoring a great opportunity to really dig into what’s working best for your company when it comes to recruitment.

Things you should be considering are:

  • Which source has brought in the highest calibre candidates?
  • Which source has brought in the fewest good quality candidates, and why?
  • What is the cost per hire for each source?
  • What is the time to hire for each source?
  • What is the CV-to-interview rate for each source?
  • What is the overall CV-to-employment rate from each source, which is the highest?

By asking each of these questions, you’ll better understand which method or source of recruitment suits your company most and delivers the best results. It also keeps each supplier working their socks off in order to keep a tight grip of their position on your PSL.

Consider Utilising a Second Tier Supply Strategy

We’re making brilliant progress here – we’ve decided to review our PSL regularly, and monitor the performance of each recruitment channel on our list carefully by setting out clear KPI’s. However, it’s always worth posing the question: What if my current suppliers fail to deliver? To put it into context, if you’re an online company that relies a lot on sales through your website, what would happen if your servers fail? Do you have a back-up server so that sales could continue to flow in? I’m guessing that most will answer yes to this question, so then – just as important – you should always have second tier recruitment policy in place should you not see the results you want from your preferred supplier(s).

Many successful companies operate an in-house recruitment process to supplement their preferred suppliers. Why? Many reasons:

  1. It means members of your PSL try doubly hard to keep their position. If you’re in-house recruitment strategy unearths a hidden gem of a candidate, then your recruitment partners will put that extra effort in to top it, otherwise – why would you need them?
  2. To extend the reach of their employment net. By sourcing candidates themselves, companies attract a higher number of high calibre candidates.
  3. Because as much effort as recruitment agencies may put in to understand your industry and company, no-one knows it as much as the company itself. By advertising a job in-house, you’ll better be able to gauge the quality of response, and invite only those you deem suitable for the post.
  4. It’s always good to have a ‘spare tyre’.

By complimenting those on your PSL with other methods of recruitment, you’ll always have something to fall back on (and you’ll maximise the efficiency of those working for you too!). When it comes to managing a supplementary recruitment process in-house, HiringMadeSimple.co.uk can help boost your results by posting your job advert across many of the UK’s leading job boards very simply, quickly and much cheaper than posting direct yourself. Find out more information about how you can post a job online by visiting the homepage.

Closing Comments

The most important thing to remember is that a PSL is meant to work in your benefit. Manage it effectively, review it regularly and supplement it with a second-tier recruitment method to get the most out of yours. And always remember – when it comes time to review, that HiringMadeSimple.co.uk offer a great alternative to expensive recruitment consultants, putting the power of employment back in your hands!

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