The contingent workforce has grown exponentially in recent years, but many organizations are still lacking the technology required to manage both their contingent workforce management program and their staffing agencies effectively.
With 82 percent of businesses expected to increase their utilization of contingent workers through 2021 and 2022, moving away from manual management methods to technology is more important than ever before.
That’s because manual methods, such as spreadsheets, simply do not work. They lead to human error, time-consuming processes, internal inefficiencies and a complete lack of visibility into how the contingent workforce management program is performing and where money is being spent.
That’s why investing in technology is crucial. Businesses that implement a vendor management system (VMS) into their contingent workforce management process will realize superior results.
What is a VMS in staffing?
A vendor management system is a platform that allows businesses to manage and procure contingent workers, as well as manage and gain insights into the performance of the staffing agencies they use to source those contingent workers.
VMS software allows businesses to automate the processes associated with contingent workforce management, such as engaging staffing agencies, sourcing contingent workers, onboarding workers, time entry, approval and invoicing.
In addition, a VMS also provides reporting and analytics functionality that gives a company insight into how their contingent workforce program is performing and whether their staffing agencies are meeting predetermined targets.
A vendor management system is used in staffing for two primary reasons:
By centralizing the entire contingent workforce management strategy into one platform, a VMS ensures all hiring managers are in sync and working together to achieve their company’s overall objectives.
How can businesses benefit from using a VMS?
A vendor management system has capabilities and functionalities that result in fantastic benefits for any organization that implements one into their contingent workforce management strategy.
Through VMS implementation, a business is able to ensure they have complete control and visibility over their contingent workforce, insights into staffing agency performance and standardized processes across the entire business. This all helps ensure significant ROI on the contingent workforce.
Here are just a few of the top business benefits a VMS can bring:
How long does VMS implementation take?
With more vendor management system options to choose from than ever before, there’s a good mix of systems that are similar and others that have different functionalities.
These functionalities have a big impact on implementation time - while many of the traditional VMS providers are complex and often way too confusing for companies with smaller amounts of contingent spend, new VMS systems are scaled back and focus on the core functionalities you need.
VMS implementation time for some of the larger VMS platforms designed for enterprise can take many months, while implementation with an easier-to-use platform can be as little as a few days.
How much does a VMS cost?
The cost of a vendor management system has typically scared organizations away from using one in the past. That’s because the traditional big vendor management system platforms required a minimum contingent workforce spend volume.
These platforms were specifically designed for the requirements of enterprise organizations with huge contingent workforce budgets. These expensive solutions might provide ROI for larger companies, but they don’t provide that same benefit for companies with smaller levels of contingent workforce spend.
Thankfully, today, there are more vendor management system options than ever before. Some innovative new platforms, such as Conexis VMS, have adopted the SaaS model - meaning your business can implement a VMS for a monthly license as little as $100 to $500.
Get a free demo of the Conexis VMS platform today.