For any company looking to build a more effective program to better manage their contingent workforce, moving away from manual spreadsheets and using automated management software is a key step towards success. Yet with a number of different platforms on the market, what is the best solution for the requirements of your business - and what exactly do all these solutions do?
First published in 2021, this is one of our most popular blogs, updated in 2024. We also encourage you to visit our VMS Education Center where you will find additional resources in our library.
In this article, we’re going to take a look at the difference between two systems, the applicant tracking system (ATS) and the vendor management system (VMS), and how each software relates to your contingent workforce program.
What is an Applicant Tracking System?
An applicant tracking system (ATS) is primarily used by many organizations that want more control over the recruitment process of their permanent employees, although it can also be used to engage non-employee workers directly.
An ATS is designed to automate and centralize the recruitment process. Information from job applicants is uploaded and organized in a database, allowing hiring managers to then use the software to schedule interviews, send applicants automated messages, send online tests, schedule interviews and mail acceptance/rejections letters.
Applicant tracking systems are typically built to streamline the hiring and recruiting process for a company’s permanent employees with job board posting modules and other direct hiring modules, but some systems do include recruiter or staffing agency modules for sourcing non-employee workers.
What is a vendor management system?
Unlike an applicant tracking system, a vendor management system (VMS) is specifically designed to help companies manage their non-employee workforce and the vendors used to source both temporary workers and independent contractors.
A VMS is a web or cloud-based platform that provides end-to-end management of non-employee workers and the staffing vendors which supply those contingent workers.
By consolidating your staffing agencies and automating all stages of the non-employee worker lifecycle (from procurement to performance to payment), a vendor management system acts as a mechanism to underpin your organization’s entire contingent workforce program.
Vendor consolidation and non-employee workforce automation will give your company clear visibility and control over your non-employee workforce program. In turn, this will lead to benefits such as cost savings (both hard and soft), enhanced efficiencies and improved workforce quality.
ATS or VMS? Which solution works best for you?
In summary, an applicant tracking system is designed to get (predominantly permanent) workers to the door of your organization and then automate all steps in the hiring process.
A vendor management system, on the other hand, is designed to manage your entire contingent workforce program. That means managing your non-employee workers from procurement to payment, and consolidating your vendors for improved visibility and greater performance insights.
It’s likely that your business could benefit from the use of both of these systems since the functionalities are different, but when it comes to your contingent workforce program - there’s only one real winner.
A VMS will improve your non-employee workforce visibility, help you monitor and track vendor performance, automate your contingent workforce management program, as well as consolidate all of your vendors in one centralized location.
All of these benefits lead to significant cost savings and improved quality within your contingent workforce program.
Discover the Power of Conexis VMS
Conexis VMS is purpose-built for organizations seeking to manage their contingent labor spend effectively. Here’s why we're the right choice:
- Fast Deployment: Get up and running in weeks, not months
- Transparent Pricing: Flexible pricing with no hidden costs
- White-Label Ready: Customize the platform with your brand
- Real-Time Insights: Make faster decisions with built-in analytics
- Audit-Ready Compliance: Store contracts, worker data, and rates in one secure hub
About Conexis VMS
Conexis is an award-winning Vendor Management System built for organizations that want the power of enterprise software without the complexity or cost.
Leveraging the latest technology, Conexis delivers the expertise, reliability and security of enterprise systems, while offering the flexibility, user friendliness and tailored, personal service you require. Learn more about our Company and why organizations Choose Conexis VMS.
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