It’s easy to go with what you know. For many companies in the tech industry, that includes using some sort of a preferred vendor list. It makes sense. In theory, it saves time, and you know what you’re getting. The truth is most recruiting and staffing vendor lists are set up around costs to be what will be the most cost-efficient. These lists champion the “if it’s not broke, don’t fix it” mentality; although loyalty is always appreciated, these lists can become limiting as time goes on.

The main problem with vendor lists

We’ll begin with a hypothetical. Let’s say a manager wants to work with a new vendor and then passes them off to someone in HR, and that person’s canned response is, “We’re not adding anyone to the list right now.” This interaction doesn’t serve the manager who spent the time trying to fill the role and find the right person. In a domino effect, productivity is stifled, money is lost, and the department with open positions suffers the consequences.

Vendor lists are stagnant and stagnant is not good for business

Your staffing vendor list starts hurting the organization when you get “married” to it because it hinders you from adapting and potentially growing. Your staffing vendor list should never be something that you can’t change. Arguably, one could say that you shouldn’t have a list in the first place.

A common misconception is that hiring outside the list leads to a broken relationship with a previous vendor. Here is the main problem with that line of thinking: you should not be trying to retain stale relationships (if that’s what they are) but instead be asking the questions, “How agile can we be by using new perspectives and how quickly can we integrate those systems into our existing processes?” How much talent are you missing out on for fear of being impolite? Why would you rebuff the opportunity to seek fresh ideas in an industry that is all about innovation?

1. New talent is hungrier and more affordable

Many fantastic small to medium-sized technology staffers could be the perfect solution to your unique problem or opportunity. Yet, if you don’t give them a shot, then you’ll never know. Furthermore, lesser-known or newer companies will certainly be more budget-friendly than the big names on your list. The thing is, however, that you may still get more bang for your buck by going with a smaller vendor. Not only do they most likely offer younger talent, but they are also hungrier to please. These companies put their money toward development and innovation, and consequently, their highest priority is providing satisfaction. Valuable people know their worth and are willing to prove it when you give them the opportunity. Engineers love a challenge and choose companies that allow them to get excited about the project.

2. New agencies are more flexible

Larger organizations typically have set, fixed practices and protocols and can tend to be less inclined to make deviations. On the other hand, you will often find that the smaller players are more willing to modify and tailor their approach to best fit your specific needs. They will take the time to talk to you to understand the nuances of your business and collaborate with you to develop those processes most beneficial to your priorities.

3. Newer and smaller vendors are more attentive

Inevitably, larger vendors are balancing many customer commitments and will most likely take longer to hear back from. Conversely, smaller partners tend to have smaller customer bases by design. It allows them to personalize each relationship and provide the best possible, most responsive customer service, including quick access to recruiters when you need them.

Where TeamUP can help

Working with the right vendors means working with the ones most committed to your success. If you have a list of vendors, you often need to continually challenge the status quo to continually improve and maximize performance. You may be inclined to do what’s easiest and resist change, but being more open-minded and more willing to explore new possibilities, will ultimately help you achieve the most tremendous success in the long run.

TeamUP leverages niche expertise to provide companies with quality candidates in the following areas:

• Software Engineering
• Hardware Engineering and IC Design
• Data Engineering
• Cloud Enablement
• Application and Software Development

We are driven to unlock your team’s potential to innovate. We are passionate about building influential careers, opportunities, and experiences with the hero creators, architects, engineers, and technologists that we connect you to. We know markets are dynamic and things change, so we believe in staying ahead.