The contingent workforce - which is made up of non-employee workers such as independent contractors, consultants, staffing agency resources, and freelancers - has boomed in recent years.
A study from Deloitte found that in the United States, more than 40 percent of workers are now employed in “alternative work arrangements”, such as contingent, part-time or gig work. As a result of this huge growth, it’s likely that your organization has its very own non-employee workforce, helping you to achieve workforce targets and grow your business.
Managing a non-employee workforce, however, is complex. Temporary workers, and the staffing vendors used to hire them, create thousands of data entry points for your organization.
Without an automated, efficient process to manage this plethora of data, your business will end up wasting valuable time, overpaying vendors, lacking visibility into your workforce and potentially even misclassifying workers.
To ensure your company is achieving its workforce targets and properly managing its non-employee workforce, it’s crucial that you start to use a vendor management system (VMS).
What is a VMS?
A VMS is a cloud-based software platform that automates and consolidates the management of your entire non-employee workforce in one centralized location.
With a vendor management system you can manage the entire non-employee hiring process with one comprehensive solution, from engaging with a staffing vendor, sourcing talent, acquiring temporary workers, managing them while they are with your company to paying their final pay cheque.
Whether your organization has 10 temporary workers or 10,000, a VMS will ensure you are able to manage procurement, measure vendor performance, facilitate onboarding, track payments and store data through every step of your non-employee hiring process.
How a VMS will benefit the way you manage your non-employee workforce
By using VMS software to consolidate the management of your entire non-employee workforce in one place, your organization will see a huge number of benefits. These include everything from significant money savings, improved operational efficiencies and better visibility into your company’s workforce.
Conexis VMS has created a list of the top five benefits that your organization will realize from the use of a vendor management system:
#1 - Better workforce visibility
By managing your non-employee workforce on one centralized cloud-based system, you will significantly improve the visibility you have into your external workforce. The result? You’ll be able to do away with those fragmented processes that result in overpaying vendors, mismanaging temporary workers and misclassifications.
You will know exactly how many non-permanent workers you have on board, the precise figure of how much your business is spending, and complete visibility into your workforce needed to prevent costly misclassifications.
#2 - Complete workforce automation
Most small to medium-sized organizations manage their non-employee workforce on a simple excel spreadsheet. With so many data points from staffing vendors and temporary workers, ensuring accurate data entry and updates through time-consuming manual processes is a huge challenge.
Automating this process through the use of a VMS, however, will ensure your company doesn’t waste time or make data entry errors. A vendor management system will automate the management of your external workforce, from sourcing, vetting, time entry and approval, onboarding, offboarding, invoicing and much more.
#3 - Consolidate your vendors in one centralized location
Hiring the top talent in your industry involves managing a wide number of vendors, with thousands of transactions. Manually tracking these costs leads to invisible expenses, such as overpaying vendors or hiring the wrong temporary workers.
A VMS will consolidate these vendor transactions into one centralized location. That means not only will you be able to ensure that you aren’t overpaying your vendors, you’ll be able to track vendor performance management through reporting and analytics.
#4 - Save money and improve efficiencies
A vendor management system will help your business implement procedures that are consistent across your entire organization. That means no more fragmented processes or differing opinions on how each department sources, manages and pays temporary workers. This will save your company money, improve your internal operations and ensure compliance with your internal policies.
#5 - Reporting and analytics
Vendor management systems provide your organization with the benchmark data and in-depth analytics that help your business meet those constantly evolving non-employee workforce targets.
Through VMS reporting analytics your company will have clear visibility into spend categorization, vendor performance, tenure management and quality metrics such as time-to-fill or workforce turnover. This ensures your company is able to make better hiring decisions and, ultimately, save money.
Want to learn more about how a vendor management system can revolutionize how your business manages its non-employee workforce?
We have built the very first vendor management system created specifically to help small and medium-sized organizations automate and improve their entire non-employee management process with no minimum spend requirements required. Contact Conexis VMS today.