1. White Paper
TM
The easiest way to fill jobs.
Preferredvendor, Inc. A Delaware Company
Copyright © Preferredvendor, Inc. All Rights Reserved 2009. Preferredvendor is a Registered Trademark of Preferredvendor, Inc.

2. Preferredvendor —
The Business Exchange Between Hiring
Companies and Staffing Vendors Is Now Online.
A revolutionary method of online recruiting is emerging that provides powerful new online recruiting
tools for Hiring Companies and Staffing Vendors. This is significant because it happens so rarely in
this mainstay area of our economy.
In the 1990s a revolution occurred in the recruiting/staffing industry when a few visionary entrepreneurs
recognized that the power of the Internet could be tapped for recruitment purposes. From this discovery
Hotjobs.com, Monster.com and Careerbuilder.com were born. However these tools are all business-
to-consumer job boards focused on connecting hiring companies and individual job seekers.
Not since the introduction of these major job boards has an online recruiting tool been positioned
to have as significant an impact on the staffing industry as Preferredvendor has today.
Preferredvendor is the first of its kind business-to-business job board focused on facilitating the busi-
ness exchange between Hiring Companies and Staffing Vendors.
The Current Staffing Industry Environment
The worldwide market for talent acquisition and staffing is a stable growth industry that is expected to
increase to $85.5 billion by 2007, with an annual growth rate of 7.7% during the period. It is anticipated
that the U.S. market will increase to nearly $36.6 billion in 2007 according to the IDC forecast in the
Worldwide and US Recruiting and Staffing Services Forecast 2003 -2007.
There is ample evidence that a war for talent is approaching and in some cases already in progress.
There will be a shortfall of 3 million workers between the projected U.S. workforce and the number
of jobs required by 2016. An estimated 19% of the U.S. workforce holding executive, administrative,
and managerial positions will retire in the next five years. India is expected to have a shortfall of
150,000 IT engineers and 350,000 business process staff by 2010. These are only three of many
factors that will drive growth in talent acquisition and staffing services through 2011.
"All areas of talent management are experiencing growth, and sourcing and contingent staffing are
no exceptions," says Lisa Rowan, IDC's program manager of HR and Talent Management services.
"The war for talent is reemerging,” she continues, “and employers are realizing that a high-performing
workforce is the key to competitive advantage. Suppliers are responding with new strategies and
offerings to help them win the battle."
Despite this fast growth track, the majority of business today between Hiring Companies and Staffing
Vendors is still conducted manually by phone, fax and email. Their use of the Internet is almost exclusively
focused on contacting individual job seekers and collecting resumes. Certainly, the Internet extends
the reach, flexibility, convenience and cost effectiveness of recruiting, while adding almost endless
possibilities for customization of messages and delivery. Industry pioneers such as Monster.com and
CareerBuilder.com have made this type of online recruiting into both an art and a science. It easily
takes a 60-slide PowerPoint to describe the wealth of services these companies now offer, going far
beyond just placing job postings online to include sophisticated resume screening, applicant tracking,
retention services and virtual job fairs.
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Copyright © Preferredvendor, Inc. All Rights Reserved 2009. Preferredvendor is a Registered Trademark of Preferredvendor, Inc.

3. Nevertheless, nearly the entire portfolio of services offered by these online recruitment giants still
focuses on job applicants. They operate in a single dimension, namely the centuries-old dynamic
between job seekers and companies with jobs to fill (Hiring Companies). Despite all their advanced
technology, this is the same dynamic served by newspapers since the 18th century. It remains a
horizontal approach, matching job seekers with open jobs.
The exciting news today is the fact that a new method of online recruiting has emerged.
Preferredvendor is vertical rather than horizontal, focused on business needs rather than applicants, and
it harnesses the power and agility of the Internet in new ways. It is a first of its kind business-to-busi-
ness job board, rather than a traditional job seeker/applicant-to-business approach. With no inten-
tion of replacing standard online or print advertising, this new approach will provide a never before
available alternative choice and supplement to traditional methods of employee recruitment for both
Hiring Companies and Staffing Vendors.
Preferredvendor
The launch of Preferredvendor introduces an online recruiting tool that intends to become essential
to both Hiring Companies and Staffing Vendors. Its goal is to greatly simplify hiring and placement of
both permanent and temporary employees while saving time and money for Staffing Vendors and
Hiring Companies alike. It will do this by taking the outdated manual business exchange between
Hiring Companies and Staffing Vendors and moving it online. By design, Preferredvendor is similar to
a job board because this is already established as very familiar tool in the staffing industry.
Basically, Hiring Companies post jobs on Preferredvendor for which they are willing to pay a fee to a
third party staffing agency or consulting firm to help them fill. What differentiates Preferredvendor from
any other player in the “Job Awareness” space is the fact that this is strictly a business-to-business job
board/online recruiting tool that does not seek to influence or involve job applicants themselves.
Currently, Hiring Companies fill roughly 90% of their open positions using business-to-consumer job
boards, employee referrals, newspaper ads, job fairs, campus recruiting and other means. Both
Hiring Companies and Staffing Vendors pay job boards to post jobs and search resume databases in
an attempt to identify and attract individual applicants. There are many business-to-consumer job
boards, including niche boards that focus on specific industries or market segments, like healthcare.
The major job boards service up to 35 different industries and market segments simultaneously.
In an attempt to fill the remaining 10% of their open positions a Hiring Company will typically work
directly with Staffing Vendors that supply personnel for a fee. Surprisingly, no online tool has existed until
now to manage the important business exchange between Hiring Companies and Staffing Vendors.
To fill this key gap in the Job Awareness space, Preferredvendor intends to become recognized as
“The business-to-business job board”™. Preferredvendor has been designed to move the
current manual process by which Hiring Companies and Staffing Vendors work together to a flexible
online environment. This is fundamentally faster, cheaper and more beneficial for both parties, while
leveraging familiar existing behaviors associated with job posting and resume searching that both
Hiring Companies and Staffing Vendors already understand.
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Copyright © Preferredvendor, Inc. All Rights Reserved 2009. Preferredvendor is a Registered Trademark of Preferredvendor, Inc.

4. Leveraging Existing Behaviors
In fact, the current major players in the Job Awareness space, Hotjobs.com, Monster.com and
Careerbuilder.com, have spent more than a decade conditioning Hiring Companies to post jobs
online and to search resume databases. The millions of dollars these companies have invested has
prepared and preconditioned the marketplace for what Preferredvendor now has to offer. In short,
Preferredvendor is positioned to leverage existing behaviors of both Hiring Companies and Staffing
Vendors. The only difference is that they will be communicating with each other online instead of with
job seekers.
The fundamental difference between Preferredvendor and these other tools is that Hotjobs.com,
Monster.com and Careerbuilder.com are all business-to-consumer job boards, while Preferredvendor is a
business-to-business job board.
Hiring Companies using Preferredvendor will pay to post the jobs they are willing to have a Staffing
Vendor to help them fill for a fee. They will also be able to search a resume database of the available
candidates at Staffing Vendors and Consulting Firms nationwide. In turn, Staffing Vendors will pay to
search the database of job postings from Hiring Companies and submit candidates.
The staffing industry is a service-based industry in which Staffing Vendors supply Hiring Companies
with employees of three types: contract, temporary and direct hires. Staffing Vendors come in all
shapes and sizes, from home-based recruiters to firms with hundreds of Sales Recruiters who market
their services to Hiring Companies. They all have a constant need of positions to fill, and they all face
similar challenges.
Pain Points for Staffing Vendors
Currently Staffing Vendors find jobs to fill in a variety of ways, all of which are time consuming,
frustrating and tedious manual processes. Most will look at Hiring Companies’ websites or major job
boards to find recently posted jobs. If suitable new jobs can be identified, they will call the Hiring
Company in an attempt to reach the appropriate hiring manager or member of the HR/ Recruiting
Department to offer their assistance in filling the open position.
Staffing Vendors also randomly cold call HR/Recruiting Departments within Hiring Companies in an attempt
to build relationships with staff members. This requires significant time whether the Hiring Companies
have a need for their services or not. These marketing efforts are also disruptive to Hiring Companies,
but have always been necessary. Why? Because Staffing Vendors currently can only place candi-
dates at Hiring Companies where they have relationships or are recognized as a “Preferred Vendor”.
Once Staffing Vendors are recognized as Preferred Vendors in the current manual process, they may
receive calls and emails from Hiring Companies. This is because Staffing Vendors on a Hiring
Company’s Preferred Vendor list typically get the first opportunity to fill new jobs that have been des-
ignated for Staffing Vendor fulfillment.
Even when recognized as a Preferred Vendor, Staffing Vendors struggle to get timely feedback from
Hiring Companies related to changes in the job descriptions/requirements. If a job is filled by another
Staffing Vendor working with the same Hiring Company, their client base is typically not large enough
to allow them to send their not hired, pre-screened candidates to another client for placement.
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Copyright © Preferredvendor, Inc. All Rights Reserved 2009. Preferredvendor is a Registered Trademark of Preferredvendor, Inc.

5. Pain Points for Hiring Companies
Hiring Companies have their own set of frustrations with the current manual process. It all starts with
how Staffing Vendors prospect for new business, which often leads to Hiring Companies receiving
dozens of calls per month from Staffing Vendors looking for new jobs to fill. This is a very inefficient
process that detracts from a recruiting department’s overall productivity.
Once a Hiring Company determines that they need the assistance of a third party Staffing Vendor to
fill an open position, the recruiter, HR representative or hiring manager must make a phone call or
send an email to each of the vendors that make up the company’s Preferred Vendor List. The Staffing
Vendors on a Hiring Company’s Preferred Vendor list have either approached the Hiring Company or
the Hiring Company has approached them. Various and differing fees have been negotiated and
agreed upon with each vendor on a Preferred Vendor list, including different fees that have to be
calculated depending on the type of employee (contract, temporary, direct hire) that is hired. Each
vendor has different percentages they receive based on the agreement they have in place, and typically
the fee percentage does not vary from position to position within the Hiring Company.
The problem with these pre-negotiated agreements is Hiring Companies often get locked into a
pre-negotiated vendor agreement that has preset fee agreements. Hiring Companies typically pay a
pre-determined percentage of a candidate’s annual salary or a pre-determined mark-up on hourly
workers. This is a very complex and often confusing process that becomes unnecessary with
Preferredvendor’s online tool. The Preferredvendor business model cuts through this maze of tedious
and costly manual interaction between Staffing Vendors and Hiring Companies with a streamlined
“online clearinghouse” solution that provides numerous benefits for both groups.
Because there is currently no easy way to manage Staffing Vendor relationships, Hiring Companies
rely on a small number of vendors to fill their open jobs versus a large aggregate pool of vendors.
Also, depending on where a job is located and how the Hiring Company’s Recruiting Department is
structured, the Hiring Company may not have “Preferred Vendors” in a given area. A Hiring Company
with a centralized recruiting function may not have Staffing Vendors in every local market where they
have an office, and since hiring is typically done at a local level this creates a problem when
assistance is need for hard-to-fill jobs.
Once a job that is designated for Staffing Vendor fulfillment is distributed to the staffing vendors, if the
job description, fee or status of a that job changes then the recruiter, HR representative or hiring manager
must make a phone call or send an email to each of the vendors to communicate each change.
When Staffing Vendors start submitting candidates to a Hiring Company, the resumes are in different
formats. Often when a Hiring Company is working with multiple Staffing Vendors to fill jobs it is not
uncommon for two Staffing Vendors to submit the same candidate. Finally, just like when prospecting
for new business, the Staffing Vendors will hound the Hiring Companies for resume, interview and
offer-related feedback.
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Copyright © Preferredvendor, Inc. All Rights Reserved 2009. Preferredvendor is a Registered Trademark of Preferredvendor, Inc.

6. How Preferredvendor works
Preferredvendor facilitates direct, real-time transactions between Hiring Companies and Staffing
Vendors using a familiar online job-board format. This new online tool also provides added features
designed to solve most of the daily pain points that Hiring Companies and Staffing Vendors experi-
ence while working together. It achieves this by combining the functionality of an enterprise Vendor
Management System (VMS) with the power and reach of a traditional job board.
Because Preferredvendor’s intuitive workflow was designed by recruiting and staffing professionals, it
works much like the major job boards and is very easy to use. The designers of the Preferredvendor
tool have been professional recruiters themselves and they have made sure that the tool enables
users to manage day-to-day activity, including a pipeline of active and inactive candidates and job
postings, while delivering precise information on demand.
Nevertheless, traditional interpersonal relationships are also preserved because Preferredvendor only
automates the front-end delivery of candidate resumes from Staffing Vendors. As with the major job
boards, resumes submitted by Staffing Vendors can be easily placed into an Applicant Tracking
System (ATS) of the user’s choice. Once a Hiring Company identifies a candidate they would like to
interview they still pick up the phone or send an email and the traditional process resumes.
Preferredvendor does not sever relationships, HR Departments still talk directly to recruiters and
both groups still cooperate to schedule interviews. The difference is that Hiring Companies and
Staffing Vendors using Preferredvendor have the power to access up-to-the-minute status reports of
job postings, open and closed searches, candidate submittals and more, all within a single online tool,
instead of spending hours in tedious manual processes.
In summary, Hiring Companies can manage their existing Staffing Vendors and, in addition, can work
with an aggregate pool of leading Staffing Vendors from across all functional areas and industry
segments. Hiring Companies can work with all vendors on a single, company-defined fee agreement
and guarantee terms, and they can determine the fee paid on a job-by-job basis. They can also easily
search resumes, post jobs, gain immediate access to an outstanding pool of active and passive
candidates and control the number of responses received for each job posting.
Hiring Companies are relieved of worries about Staffing Vendors submitting unsolicited or duplicate
candidate resumes, and duplicate resume submittals from multiple vendors can be also eliminated.
The time spent fielding inbound calls from Staffing Vendors marketing their services is greatly
reduced by making hard-to-fill positions viewable in an easily accessible site available to Staffing
Vendors and Consulting Firms nationwide.
Staffing Vendors using Preferredvendor gain immediate access to a channel of pre-qualified busi-
ness, reducing or even eliminating costly, time consuming outbound marketing and sales calls. They can
search for the exact type of job postings based upon vendor-defined criteria. Staffing Vendor can
instantly secure Preferred Vendor status with key Hiring Companies nationwide right online. There is
never a doubt that candidate resumes are being submitted directly to the right people at Hiring
Companies, and by utilizing candidate pools more effectively Staffing Vendors are able to make more
placements and increase revenues by doing business with a much larger base of Hiring Companies.
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Copyright © Preferredvendor, Inc. All Rights Reserved 2009. Preferredvendor is a Registered Trademark of Preferredvendor, Inc.

7. Benefits for Hiring Companies
and Staffing Vendors
A number of tangible benefits can be realized almost immediately by both Hiring Companies and
Staffing Vendors utilizing Preferredvendor as a standard method of business.
Hiring Companies
– Work with all vendors on a single, company-defined fee agreement and guarantee terms.
– Determine the fee paid on a job by job basis.
– Search resumes of available candidates of Staffing Vendors and Consulting Firms.
– Post jobs for existing Staffing Vendors, or a customizable pool of vendors from across all
functional areas and industry segments.
– Gain immediate access to an outstanding pool of active and passive candidates.
– Control the number of responses received for each job posting.
– Prevent Staffing Vendors from submitting unsolicited or duplicate candidate resumes.
– Reduce inbound calls from Staffing Vendors marketing their services by making hard to fill
positions viewable in an easily accessible site.
– Eliminate duplicate resume submittals when working with multiple vendors,
Staffing Vendors
– Gain immediate access to a channel of pre-qualified business, reducing or even eliminating the
need for, and cost associated with, outbound marketing & sales.
– Search for exactly the type of job postings wanted based upon vendor-defined criteria.
– Allow Hiring Companies to search the available candidates of Staffing Vendors and Consulting
Firms nationwide.
– Instantly secure “Preferred Vendor” status with key Hiring Companies nationwide.
– Submit candidate profiles directly to the right people at Hiring Companies.
– Utilize candidate pools more effectively to make more placements.
– Increase revenues by doing business with a larger base of Hiring Companies.
Prospects for Preferredvendor
No competitor currently offers a directly equivalent service to the Preferredvendor offering. While sev-
eral Staffing Exchanges, Recruiter Networks, Vendor Management Systems and Applicant Tracking
Systems offer bits and pieces of what the Preferredvendor tool incorporates, none offer a complete
integrated solution.
Staffing Exchanges and Recruiter Networks are typically designed to bring Hiring Companies and
Staffing Vendors together, but are not designed to solve the business problems and handle the difficult
nuances that Hiring Companies and Staffing Vendors often face when working together.
Vendor Management Systems (VMS) are typically enterprise applications that are designed for Hiring
Companies that are hiring hundreds of contract employees per year, and very few handle direct hires.
Applicant tracking Systems (ATS) with Vendor Modules are also designed to assist Hiring Companies
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Copyright © Preferredvendor, Inc. All Rights Reserved 2009. Preferredvendor is a Registered Trademark of Preferredvendor, Inc.

8. in managing their Staffing Vendor relationships. However, the challenge these systems create for a
Hiring Company’s vendors is that their systems/modules are designed to manage “one-to-many”
relationships. As result Staffing Vendors find themselves working with a confusing number of differing
Vendor Management Systems in attempting to work with all of their clients.
On the other hand, Preferredvendor is an online recruiting tool specifically designed for Hiring
Companies and Staffing Vendors of all sizes and enables them to handle “many-to-many” relationships.
While using Preferredvendor, a Staffing Vendor can work with hundreds of Hiring Companies, and a
Hiring Company can leverage an aggregate pool of Staffing Vendors. This makes it possible for both
groups to fill positions faster and with less potential confusion or miscommunication.
Specifically, there is no other commercially available online recruiting tool that manages the day-to-day
activity or the complex rules of the business exchange between Hiring Companies and Staffing
Vendors. Therefore, Preferredvendor has reasonable expectations of quickly becoming the leading
online recruiting/vendor management tool in this space by offering corporate recruiters a never-before-
available, comprehensive tool that can handle the entire range of their diverse vendor management needs.
Over time, Preferredvendor will replace the outdated manual process that Hiring Companies and
Staffing Vendors must currently use to work together. Preferredvendor will create the same
beneficial buffer and interface between Hiring Companies and Staffing Vendors that the major job
boards have already created between Hiring Companies and individual job seekers.
Preferredvendor will allow Hiring Companies to control the costs associated with Staffing Vendors by
allowing them to determine the fee that they are willing to pay a vendor on a job-by-job basis. This is
an entirely new concept that benefits both parties. Furthermore, Preferredvendor will eliminate the
need for individual vendor agreements because when a Staffing Vendor submits a candidate’s
resume to a Hiring Company’s job posting, the vendor agrees to the fee specified on the job posting
and the fee agreement and guarantee terms outlined in the Hiring Company’s profile.
Hiring Companies will be able to control which Staffing Vendors see their job postings by choosing to
make their job postings available only to their primary and secondary vendors or to the general pool
where all the Staffing Vendors nationwide using Preferredvendor will have access to the jobs. This
ability to leverage an aggregate pool of Staffing Vendors should allow positions to be filled faster.
Hiring Companies will also be able control the number of responses they receive for each job posting
because the company can select the total number of responses they want per posting, as well as the
number of responses they will accept from each Staffing Vendor/recruiter.
The Time Is Right for
a New Online Recruiting Vertical
The time has arrived for the talent acquisition and staffing industry to benefit directly from the shift
other industries have already made to online business-to-business relationship management tools.
That shift is being enabled by the unique design and benefits of Preferredvendor For the first time,
a flexible business-to-business solution is being brought to a critical economic area that has been
hampered by costly, frustrating and time consuming manual processes for too long. It will no longer
be necessary for the talent acquisition and staffing industry to continue operating with mid-20th cen-
tury telephonic cold calling and paper-based limitations!
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Copyright © Preferredvendor, Inc. All Rights Reserved 2009. Preferredvendor is a Registered Trademark of Preferredvendor, Inc.

9. Everything is in place for success: The sophisticated online tool is available, the job-board style
Internet interface is familiar to all players in the recruiting space and hiring managers are pre-disposed
to streamlined relationship management processes. All that has been missing, for both Hiring
Companies and Staffing Vendors, is a comprehensive online tool that integrates all the features and
tools that both parties require to save time, cut costs and boost their mutual productivity.
With the arrival of Preferredvendor, a business-to-business tool has emerged that delivers the power
to take this segment of the online recruiting to the next stage, while becoming the dominant proto-
col of how Hiring Companies and Staffing Vendor work profitably together.
Preferredvendor, Inc. •2300 M Street • Suite 800 • Washington, DC 20037
ph: 800-959-3812 • fax: 800-959-3816
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Copyright © Preferredvendor, Inc. All Rights Reserved 2009. Preferredvendor is a Registered Trademark of Preferredvendor, Inc.