For organizations managing a contingent workforce program with an annual spend under $70 million – called Mid-Market programs - selecting the right Vendor Management System (VMS) is critical. Your VMS should provide a scalable, efficient, and comprehensive solution without requiring multiple systems or extensive customization. In this article, we look at the key factors for mid-market programs to consider when selecting a VMS.
Five key factors when evaluating a VMS for your mid-market program
1 - Comprehensive Skill Category Coverage
A common challenge for companies managing contingent labor is juggling multiple systems to handle different workforce segments. Whether you’re hiring highly skilled IT contractors, warehouse associates, or healthcare professionals, your Vendor Management System (VMS) should support all skill categories. This capability eliminates the need for separate systems for white-collar, blue-collar, or specialized workers.
Look for a VMS that streamlines the recruitment, management, and payment processes across all worker types. A unified system ensures consistency, reduces administrative overhead, and provides a complete view of your workforce, regardless of the roles you’re filling.
2 -Built-In RPO and Direct Sourcing Capabilities
Recruitment Process Outsourcing (RPO) and direct sourcing are becoming essential tools for contingent workforce programs. Many VMS platforms have started incorporating these capabilities, allowing companies to access pre-curated talent pools or directly source candidates.
The ability to source, hire, and pay the search fees related to your direct employee hires enables you to manage all staffing-supported needs via one system. Meanwhile, direct sourcing allows you to engage with workers who already have a relationship with your organization. This dual approach can reduce time-to-fill and costs while improving the quality of hires. Ensure your VMS provides seamless access to these features to stay competitive and efficient.
3 - End-to-End Req-to-Check Management
Managing the entire requisition-to-check process within one system is vital for program efficiency and compliance. A VMS should support every step, including requisition creation, candidate submission, interview scheduling, onboarding, time tracking, and invoicing.
This ensures no steps fall through the cracks and offers better control over the lifecycle of contingent workers. Additionally, having everything in one system reduces the risk of errors and increases visibility into crucial program metrics, helping you manage your contingent workforce program more effectively.
4 - Robust Reporting and Analytics
For contingent workforce programs of any size, data-driven decision-making is essential. A VMS with solid reporting and analytics capabilities can provide real-time insights into program performance, such as spend tracking, supplier performance, worker quality, and compliance.
Look for a system with customizable dashboards, automated reporting, and predictive analytics. These tools will help you identify trends, measure ROI, and make informed decisions to optimize your program. With robust analytics, you can gain opportunities for cost savings and efficiency improvements.
5 - Scalability and Ease of Use
While your program may be under $70M annually, your needs may grow over time. Choose a scalable and flexible VMS to accommodate future expansion without requiring an overhaul. At the same time, ensure the platform is user-friendly for program managers, hiring managers, and suppliers.
A simple, intuitive interface minimizes the learning curve, improves adoption rates, and ensures the platform is used to its full potential. Scalability and ease of use ensure your VMS can support your program's current and future needs without becoming a bottleneck.
Summary
Choosing the right VMS is a strategic decision that impacts your contingent workforce program’s efficiency, compliance, and scalability. By prioritizing a system with comprehensive skill category coverage, built-in RPO and direct sourcing, end-to-end req-to-check management, robust analytics, and scalability, companies with mid-market programs can unlock significant value and position their programs for success.
Assess your organization's unique needs and ensure the VMS you choose aligns with your current and future goals. A well-chosen VMS isn’t just a tool; it’s a partner in managing your workforce effectively.
Conexis VMS: Enterprise Solution. Mid-Market Focus
Conexis is an award-winning VMS tailored specifically for mid-market contingent workforce programs. Leveraging the latest technology, Conexis delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored service you require. Conexis delivers enterprise level software - without the enterprise level complexity and cost.
Learn more about our Company and why organizations choose Conexis VMS.
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Whether you are looking to change your VMS solution, or just getting started, we are here to help. Contact Us for a Free No-Obligation Consultation to discuss your workforce challenges (and get immediate actionable insights). See how easy Conexis is to use by taking a quick 2 minute Self-Guided Tour, or Book a Personal Demo Today!
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