Contingent Workforce Staffing Technology: How a VMS is a Game-Changer

Technology is a crucial part of building an effective contingent workforce program. It helps you mitigates human error, eliminate time-consuming processes and inefficiencies, and provides your business with complete financial oversight. In the world of staffing technology, the use of a vendor management system is a game-changer.

What is a Vendor Management System?

A Vendor Management System (VMS) is a cloud-based software platform that helps organizations source, manage, pay, and analyze contingent workers and staffing vendors in one centralized system. A VMS provides real-time visibility into workforce spend, compliance, supplier performance, and labor costs while automating manual processes across the contingent workforce lifecycle.

Organizations use a Vendor Management System to manage contingent workers, including contractors, temporary staff, consultants, and shift-based labor. By acting as the system of record, a VMS replaces spreadsheets, email chains, and disconnected tools with structured workflows that improve efficiency, reduce risk, and control costs.

Why a VMS is Important for Contingent Staffing

Here are some of the top reasons why a Vendor Management System (VMS) 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.

Learn more about the Benefits of a VMS

Learn more about the Benefits of a VMS and what to look for when choosing the best VMS for your organization. Download our Free VMS Buyer's Guide here:

Additional Reading for Staffing Agencies

VMS for Staffing Agencies Guide | Staffing Agency Grow Your Revenue Guide

The Conexis VMS Difference

Conexis VMS 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 VMS 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 what makes Conexis VMS different.

Discover the Power of Conexis VMS

Conexis VMS is trusted by staffing agencies, MSPs and leading organizations to modernize and manage their contingent workforce programs. Here's why organizations choose Conexis VMS:

Modern VMS Technology - Built on the latest AWS microservices architecture and Open API
Fast Implementation - Get up and running in under a month, free setup and training included
Fully Branded White-Label VMS - Your Logo. Your Domain. Your Branded Communication
Flexible Pricing - No setup fees, with free implementation, training and account management
Personal Attention - Experienced senior account management from implementation onward

Switching Your VMS or Just Getting Started?

We work with teams at every stage, from first-time buyers to companies replacing outdated platforms that can't keep up. Either way, we'll show you what a modern VMS looks like, up and running in under 30 days.