--- title: 4 Ways to use your VMS to Control Workforce Costs and Save Money description: A VMS gives complete visibility over your contingent contingent workforce program. Here's 4 ways to use your VMS to control workforce costs. image: https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/COST%20IMAGES/cost%201200x627%20under%20150%20%20optimized/how-much-does-a-vms-cost-1200-627-36.jpg --- - [BOOK A DEMO](https://www.conexisvmssoftware.com/book-a-demo) - [TAKE A TOUR](https://www.conexisvmssoftware.com/self-guided-tour-of-conexis-vms-vendor-management-system-demo) [![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-FINAL-1.svg) ![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-V2.svg)](https://www.conexisvmssoftware.com/) [![Conexis Logo](https://www.conexisvmssoftware.com/hubfs/CONEXIS%20LOGO/ConexisLogo%20Square%20Green-Black-V2.svg)](https://www.conexisvmssoftware.com/) - 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[TAKE A TOUR](https://www.conexisvmssoftware.com/self-guided-tour-of-conexis-vms-vendor-management-system-demo) 8 October 2021 # 4 Ways to use your VMS to Control Workforce Costs and Save Money [![Wayne Burgess](https://www.conexisvmssoftware.com/hs-fs/hubfs/Wayne100.png?width=30&height=30&name=Wayne100.png) Wayne Burgess](https://www.conexisvmssoftware.com/blog/author/wayne-burgess) - - - An increasing number of businesses are turning to contingent and temporary staffing to meet their workforce requirements. This article explores how a Vendor Management System can assist in managing expenses and reducing costs. Industry research indicates that roughly 25-30 percent of the US workforce is contingent, and more than 80 percent of large corporations plan to substantially increase their use of a flexible workforce in coming years. ## The Benefits of a Contingent Workforce That’s because the benefits of contingent workers are significant. They provide organizations with the ability to access hot skills, achieve workforce objectives in a competitive market, increase business flexibility, and realize significant cost savings. Yet, without the right [contingent workforce management program](https://www.conexisvmssoftware.com/contingent-workforce-management-2025), organizations simply cannot achieve the above benefits.  A [vendor management system](https://info.conexis.io/en-ca/what-is-a-vms) (also known as a VMS) provides your business with the platform it needs to manage both your staffing agencies and contingent workforce. By acting as a system of record for your company’s entire staffing agency process, a VMS centralizes, automates and consolidates all of the processes and data associated with managing your vendors. [A VMS gives you complete visibility and control](https://conexis.io/vms-benefits/) over staffing agency performance and your contingent workforce.  With increased visibility and control over your contingent workforce program, your organization now has the ability to optimize its use of VMS software to manage contingent workforce costs and save money. ## How to use your VMS to control cost and save money: ### #1 - Choose the type of contractual agreement that works best for your organization There are three common types of contract types for contingent workers, staffing, time and materials (T&M), and milestone contracts.  #### Staffing Contract A staffing contract is the payment of time worked to a staffing agency, time and materials is where the worker is billed per hour at the agreed contractual rate, while a milestone contract is where pricing is fixed and based purely on the competition of a specific project or length of time.  It’s important to find the most cost-effective contract type for your organization. Most companies that use contingent workers will likely have them on staffing contracts, but if you do hire any contingent workers directly, then T&M vs. milestone contracts is an important consideration.  #### Time and Material Contracts Time and Materials (T&M) contracts generally work with more flexible schedules and budgets, while milestone contracts only pay workers for the actual work done. Both contracts have their pros and cons, so it’s important to find the one that works best for your company’s processes. #### Milestone Contracts In the staffing industry, agencies quite often will use milestone arrangements to hide higher than normal markups. Traditional time based staffing agreements typically require the agency to disclose, and adhere to a capped markup. ### #2 - Set a cap on staffing agency markup If your contingent workers are hired through staffing agencies and your business is located in the US, then they are more than likely employees of the staffing agency. That means they are paid directly by the agency, and not your business. However, if your business is in Canada, then this will depend on the category of worker (whether they are a T4 worker or independent contractor). If your contingent workers are paid through your staffing agency, then your organization will pay the staffing agency a markup - which is a payment to the staffing agency for its services (overhead costs and profit) on top of the wages (pay rate) that you will also be covering for the contingent worker. #### Use Your VMS: to establish a maximum bill rate and a maximum markup. This will ensure that staffing agency payment is standardized across your entire organization, minimizing the risk that hiring managers will go rogue with overpayments. ### #3 - Develop a rate card for all hiring managers to follow Similarly, to standardized contingent costs across your entire business, it’s important to design a well-defined rate card for hiring managers to follow. This will minimize the risk of rogue spend across your contingent workforce management program.  #### Use your VMS: to build a rate card The rate card will clearly define the maximum rates allowed for various job titles, locations and experience levels. By doing this, you’ll prevent hiring managers from overpaying for workers. ### #4 - Measure staffing agency performance Measuring, analyzing and managing the performance of your staffing agencies ensures your organization is able to alleviate supplier risk, cut costs and drive continuous improvement within your contingent workforce management program. #### Use your VMS: to gain visibility to measure performance A VMS solution puts data and insights at the forefront of your contingent workforce program. The visibility and control you gain of your contingent workforce through a VMS allows you to clearly analyze key metrics such as turnover, time-to-fill, fill rate and many more. The better your staffing agencies perform, the better access your organization has to top talent.  ## Learn more about the Benefits of a VMS Download a copy of our free [VMS Buyers Guide](https://www.conexisvmssoftware.com/conexis-vms-buyers-guide) - it includes everything to know about a VMS and a checklist of all the questions you should ask a VMS provider; **including the Top 10 Pricing questions.** [![Everything you need to know about Vendor Management Systems](https://no-cache.hubspot.com/cta/default/7617376/9ad5634f-c8fc-44d7-ac23-49cded1aacec.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/9ad5634f-c8fc-44d7-ac23-49cded1aacec) ## Additional Reading [Everything You Need to Know about VMS Cost Savings | Guide](https://www.conexisvmssoftware.com/vendor-management-system-vms-cost-savings-) ## Conexis VMS Case Study [Case Study: How a Manufacturer Cut Costs by 27% and No Shows by 80% with Conexis VMS](https://www.conexisvmssoftware.com/blog/case-study-vms-manufacturing-cost-reduction) [![Read how Conexis VMS helped a Manufacturer Reduce Costs in this Case Study](https://no-cache.hubspot.com/cta/default/7617376/5cbe349c-fdb3-4d69-9ab8-3a02ba973811.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/5cbe349c-fdb3-4d69-9ab8-3a02ba973811) ## The Conexis VMS Difference Conexis VMS is an [award-winning](https://www.conexisvmssoftware.com/conexis-vms-awards-and-recognition) vendor management system built for organizations that want the power of enterprise software without the complexity or cost. Leveraging the latest technology, Conexis VMS delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored, personal service you require. Learn more about our [Company](https://www.conexisvmssoftware.com/company) and what makes [Conexis VMS different](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis). ## Discover the Power of Conexis VMS Conexis VMS is trusted by staffing agencies, MSPs and leading organizations to modernize and manage their contingent workforce programs. Here's why organizations choose Conexis VMS: - [Modern VMS Technology](https://www.conexisvmssoftware.com/best-vendor-management-system-conexis) - Built on the latest AWS microservices architecture and Open API - [Fast Implementation](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-launches-a-vms-in-weeks-not-months) - Get up and running in under a month, free setup and training included - [Fully Branded White-Label VMS](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) - Your Logo. Your Domain. Your Branded Communication - [Flexible Pricing](https://www.conexisvmssoftware.com/pricing) - No setup fees, with free implementation, training and account management - [Personal Attention](https://www.conexisvmssoftware.com/vms-nps-customer-satisfaction-adoption) - Experienced senior account management from implementation onward ## Switching Your VMS or Just Getting Started? We work with teams at every stage, from first-time buyers to companies replacing outdated platforms that can't keep up. Either way, we'll show you what a modern VMS looks like, up and running in under 30 days. | [![Book a private consultation with Conexis VMS](https://no-cache.hubspot.com/cta/default/7617376/838fcdf1-1e6b-4f38-94ca-546b5c3f500a.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/838fcdf1-1e6b-4f38-94ca-546b5c3f500a) | [![Take a self-guided tour of Conexis VMS ](https://no-cache.hubspot.com/cta/default/7617376/6617fad0-9168-4a45-b474-c96a34628641.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/6617fad0-9168-4a45-b474-c96a34628641) | [![Book a Demo with Conexis VMS](https://no-cache.hubspot.com/cta/default/7617376/18db2c62-a34a-4454-8010-c1bfc7f5e559.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/18db2c62-a34a-4454-8010-c1bfc7f5e559) | | --- | --- | --- |   [![VMS Cost Savings & ROI](https://no-cache.hubspot.com/cta/default/7617376/7964de58-3aba-4a2c-a00e-57dfcef644a4.png)](https://cta-redirect.hubspot.com/cta/redirect/7617376/7964de58-3aba-4a2c-a00e-57dfcef644a4)     ![Wayne Burgess](https://www.conexisvmssoftware.com/hubfs/Wayne100.png) #### Wayne Burgess Wayne Burgess is the Co-Founder of Conexis VMS, a technology company focused on helping organizations get control of their Contingent Workforce. ### Popular posts ![How Do They Do It? How Conexis Open APIs Deliver Fast VMS Integrations](https://www.conexisvmssoftware.com/hubfs/how%20do%20they%20do%20it-Conexis-VMS-Open%20api_%201200x627-44.jpg) ## [How Do They Do It? How Conexis Open APIs Deliver Fast VMS Integrations](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-vms-open-apis-make-vms-integration-fast) [![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-vms-open-apis-make-vms-integration-fast) 17 September 2026 ![How Do They Do It? How Conexis VMS Delivers a White-Label VMS](https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/HOW%20DO%20THEY%20DO%20IT%20OPTIMIZED%201200/conexis-vms-white-label-vms-1200-627-60.jpg) ## [How Do They Do It? How Conexis VMS Delivers a White-Label VMS](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) [![read more](https://www.conexisvmssoftware.com/hubfs/6M%20Files/read-more.svg)Read More](https://www.conexisvmssoftware.com/blog/how-do-they-do-it-how-conexis-delivers-fully-branded-white-label-vms) 24 June 2026 ![How Do They Do It? How Conexis VMS Can Launch in Under 30 Days](https://www.conexisvmssoftware.com/hubfs/1.%20MASTER%20MASTER%20Blog%20and%20Website%20Page%20IMAGES%202026/HOW%20DO%20THEY%20DO%20IT%20OPTIMIZED%201200/conexis-vms-implementation-1200-627-59.jpg) ## [How Do They Do It? 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