Just like any core business function, the contingent workforce must be managed strategically through the creation, implementation and ongoing management of a well thought out program.
Technology is a crucial part of building an effective contingent workforce program that mitigates human error, time-consuming processes and inefficiencies, and as a result gives your business complete oversight.
The use of a vendor management system gives your business the visibility and control it needs to analyze program performance and make improvements to lower costs and enhance quality.
With that in mind, here are some of the top reasons why a vendor management system is important for contingent staffing.
#1 - Data analysis for improved program performance
To maximize ROI within your contingent workforce program, it’s important to reduce spend and improve workforce quality. You can only do these two things when you have visibility into the performance of your program. A vendor management system gives you the program performance metrics you need to understand how your program is operating, how much your hiring managers are spending and how well your staffing agencies are performing.
#2 - Staffing agency onboarding
Onboarding new staffing agencies to fulfill your company’s contingent workforce requirements is a simplified digital process with a vendor management system. Once a staffing agency is added to the VMS then all invoices and purchase orders from that agency can be linked. A VMS will make it a seamless task to trace payments and find out how much you are spending (and what on) with each of the staffing agencies your organization uses.
#3 - Align your contingent workforce program across your entire organization
A vendor management system aggregates and consolidates your entire company-wide contingent workforce program, and all of the data associated with it, into one centralized platform. This makes it easier to align your entire organization with your contingent workforce strategy, ensures hiring managers are paying standardized vendor rates, and gives you a detailed view into what contingent workers are being hired, where in your organization they are working, and for how much.
#4 - Software integrations
VMS software can be integrated with other office technology platforms such as accounting software. This allows for the seamless exchange of data between systems, so that accounting processes (such as auditing vendor payments) can be done without having to manually enter information.
#5 - Process automation
Contingent workforce management is complex, but VMS automation makes it easier. A vendor management system will automate and simplify processes such as:
- requesting, screening and selecting contingent workers,
- onboarding and offboarding (both vendors and contingent workers),
- managing time cards and expenses,
- invoicing,
- payments.
Process automation saves your team significant amounts of time, allowing them to focus on core competencies that help grow your business.
#6 - Risk assessment and compliance
As with any business strategy, there are a range of risks associated with the contingent workforce, from workforce misclassification, contractual adherence, insurance maintenance, health and safety requirements, and adherence to company policies. A vendor management system helps you mandate, and track, business-wide processes to ensure your company is mitigating all of these risks.
Interested in learning more about Vendor Management Solutions?
Whether you are looking for a new VMS Solution, or just getting started, we are here to help. See how easy Conexis is to use by taking a quick 2 minute Self-Guided Tour. Contact Us for a Free No-Obligation Consultation to discuss your workforce challenges (and get immediate actionable insights) or Book a Personal Demo Today!
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