The contingent workforce has grown exponentially in recent years. While this has brought benefits for businesses, it has also brought complexities with its management.
Managing a contingent workforce comes with a range of process and operational challenges that, if not addressed, can cost organizations billions of dollars a year in profit.
Most businesses are still managing their contingent workforce programs with manual spreadsheets, in-house databases or Sharepoint-like websites. The problem is, this manual way of managing a contingent workforce leads to challenges that directly impact the performance of their contingent workforce program.
Companies that use manual programs offer suffer from:
- Hidden costs that run rampant through their contingent workforce program.
- A lack of control over contingent workers.
- Sub-standard access to quality talent.
- High contingent workforce turnover.
- Process inefficiencies.
- Increased contingent workforce risk.
- Limited visibility and control over vendor performance.
- Non-standardized processes across the company’s hiring managers.
So, what’s the solution? Businesses can realize huge results simply by automating their contingent workforce management processes through the implementation of a vendor management system. Let’s look at how.
Firstly, what is VMS software?
A vendor management system, also known as a VMS or VMS software, is a software that manages the entire lifecycle of contingent workers procured through a staffing agency. Using a VMS, businesses are able to automate all of the processes, from procure-to-pay, of managing the contingent worker and staffing agency relationship all in one centralized platform.
VMS software organizes and maintains standardization across the entire contingent workforce process, from the moment a business engages a staffing agency, to sourcing contingent talent, and finally invoicing.
Benefits of VMS implementation include:
- Complete workforce visibility
- Managing your staffing agencies all in one centralized location
- Improved efficiencies
- Cost savings
- Improved program reporting and analytics
- The standardization of processes for all company hiring managers
What is VMS automation?
Technology is the greatest opportunity to advance an organization’s contingent workforce program. The use of a VMS can bring businesses greater intelligence, insights and control, while also improving the efficiency of a company’s internal team.
By automating the processes associated with contingent workforce management, businesses are able to significantly save employee time, which in turn allows them to focus on core competencies that drive business growth.
Here are just a few of the top contingent workforce program processes that are improved through VMS automation:
✔️ Requesting, screening and choosing contingent workers
A vendor management system allows buyers to create, approve and post requisitions to staffing agencies. Once a staffing agency submits candidates and the business screens and accepts, a VMS will automate the completion of contracts with POs, business units, cost centers and GL codes.
✔️ Workforce onboarding and offboarding
A VMS enables and monitors the completion of all onboarding steps, such as background checks, any buyer training, issuance and technology access, as well as automated off-boarding when the contingent workers assignment ends.
✔️ Time cards and expenses
A vendor management system fully automates all contingent worker time cards and expense submissions. Contingent workers simply go online and enter their time cards or expenses, allowing hiring managers to review and either accept or reject with one click of a button.
✔️ Invoicing and payment
A VMS will run invoicing on approved time and expense submissions, with suppliers able to access their invoices and time card details for their own financial requirements.
✔️ Contingent workforce program performance reporting
Want to know how your contingent workforce management program is performing, so that you can make changes that improve ROI in the future? Vendor management systems have a set of standard reports and custom reporting that give businesses insight and control over areas of the program, such as spend, time-to-fill, turnover and cost savings.
Interested in learning more about how a vendor management system can help automate the processes associated with managing a contingent workforce? Book a free demo of Conexis VMS today.
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