There’s no getting around one simple fact when it comes to managing a contingent workforce program - it’s difficult.
It requires knowledge of the contingent category, an understanding of how to successfully manage multiple staffing agencies, and efficient processes that can be repeated over and over again. These all lead to improved contingent workforce ROI.
Yet most companies don’t have these repeatable processes in place, and that means their resources struggle to gain visibility and control over the program.
Instead, the vast majority of organizations (especially those with smaller contingent workforce volumes) use manual spreadsheets, in-house databases or Sharepoint-like websites to manage their contingent workforce.
But this is ineffective. When a contingent workforce program is managed manually, information gets lost across different departments, data is hidden within email chains and hiring managers engage staffing agencies on their own terms and at their own rates.
The end result is a complete lack of visibility and control over how the contingent workforce program is performing and what is actually being spent - impacting overall program ROI and workforce quality.
There’s one solution that can mitigate all of these risks, and give your business complete insight into its contingent workforce program. A vendor management system.
How your business will benefit from implementing a VMS solution
A vendor management system, also known as a VMS or VMS solution, is a platform that centralizes your entire contingent workforce program into one location - allowing you to procure and manage contingent workers and engage and manage staffing agencies.
By automating your processes so they are repeatable and accurate, and centralizing all information into one location so hiring managers follow standardized processes and rates, the use of a VMS will give your business complete visibility into contingent workforce program performance and spend.
The use of a vendor management system leads to:
- The ability to monitor and track staffing agency performance, so you can ensure you are hiring high-quality workers at good rates.
- Improved visibility of your contingent workforce program, to mitigate rogue spend and inefficient processes.
- Saved time and more efficient processes through automation.
- Reduced costs by increasing your visibility into spend, allowing you to eliminate rogue costs and get the best price from vendors.
- Ensure you meet regulatory compliance requirements through better documentation.
Are you looking to purchase a vendor management system? Here are some key questions to narrow down the right VMS solutions
- How much does the vendor management system cost?
The traditional VMS big players are expensive. Since they are priced on a percentage of contingent workforce spend and huge implementation costs, they don’t offer a great ROI for organizations with smaller contingent workforce volumes.
But that doesn’t mean there aren’t solutions out there for your business. Some VMS solutions, such as Conexis VMS, use a SaaS model of pricing with a monthly license fee that’s far more cost-effective for businesses with smaller contingent workforce volumes. And in most cases implementation is free.
Interested in learning more? Read our blog, How Much does a Vendor Management System (VMS) Cost?
- Does the VMS provider have good customer support?
The success of a contingent workforce program is heavily reliant on the use of vendor management software. To truly gain visibility and control over your program, your team needs to know how to implement and use the VMS, and the technology needs to work seamlessly for your organization’s processes.
Working with a VMS provider with good customer support is an important aspect of ensuring your team is able to easily address challenges when they are experiencing them.
- Is the vendor management system easy for my team to use?
The traditional VMS solutions have been built with a huge amount of bells and whistles. While this gives these solutions more functionality, it can make them incredibly time-consuming, frustrating and difficult to use for smaller teams - taking their focus away from the core competencies that truly grow a business.
Conexis VMS has been specifically designed to be easier-to-use for companies that don’t need this complex functionality. Our technology is easier to implement, can be used seamlessly from the get-go and allows your team to focus on revenue-driving tasks instead of working out how to navigate your VMS.
- Can you source permanent employees on the VMS?
When many think of the workers associated with a vendor management system, temporary workers and contractors come to mind. But did you know that you can also manage the sourcing of permanent employees through staffing agencies with some VMS solutions?
If your organization sources permanent employees through staffing agencies, this might be an important functionality you need from your vendor management system.
- Are you able to view a demo of the VMS, and understand how it would work for your specific needs?
To truly narrow down your list of VMS solutions, you’ll want to see first-hand how the technology can work for your organization. A vendor management system provider should be able to give you a first-hand demo, where they walk you through how the platform will meet the specific needs and requirements of your organization.
A vendor management system demo will give your organization an in-depth look at the features and functionalities that the technology has, and how they can be used by your team to achieve your workforce goals.
Are you interested in learning more about the Conexis VMS platform, designed specifically to be easy to use for organizations with smaller contingent workforce volumes? Book a demo today.