Industry research indicates that contingent workers make up over 40 percent of the total workforce, In this article, we take a look at five reasons why a vendor management system (VMS) is a priority for any organization managing a contingent workforce.
There are several challenges facing organizations that manage a contingent workforce without a Vendor Management System.
Lack of Visibility & Control: Firstly, the company has a complete lack of visibility and control over its contingent workforce, with no insight into where externally-sourced workers are being hired and for how much.
Rogue Spend: Secondly, the business suffers from rogue spend, with no standardization for how much hiring managers should be paying staffing agencies.
5 Reasons why a VMS is a Priority for Contingent Workforce Management
In this article, we take a look at five reasons why a vendor management system (also commonly known as a VMS) is a priority for any organization with contingent workforce spend.
- Cost Savings
- Align the contingent workforce program with strategic initiatives
- Improved talent acquisition
- Risk mitigation
- Place workers into your business faster
The implementation of a VMS helps organizations reduce costs when it comes to their contingent workforce. Through improved program visibility, businesses are able to see where they are overspending on staffing agencies, where hiring managers aren’t following standardized processes and rates for hiring contingent workers, and where staffing agencies are falling short on their deliverables.
In fact, Staffing Industry Analysts' “Workforce Solutions Buyer Survey” found 76 percent of companies had experienced savings through the use of a vendor management system.
To truly align your company’s contingent workforce program with your broader goals and strategic initiatives, you need to move away from a fragmented approach to managing your externally-sourced workforce and instead focus on unifying it across all team leaders.
By creating and implementing strong processes, and bringing those all into one company-wide approach through the use of a VMS, your business will be able to optimize its contingent workforce to help meet your overarching business objectives.
VMS software offers organizations the insights they need to monitor and track staffing agency performance. This unique visibility into staffing agency performance allows companies to ensure they are partnering with the best vendors for top talent acquisition.
The contingent workforce comes with a range of risks associated with worker misclassification and co-employment laws. Incorrectly identifying the relationships between your business and its externally-sourced workers can lead to fines and penalties.
Final Thoughts
A vendor management system provides companies with the centralized database they need to document their contingent workforce data and ensure they aren’t falling foul of their local regulations.
The current workforce shortage means your business needs to act fast. When you have an open position, you need to beat your competitors and fill it as soon as possible. One of the most important KPIs to achieve this is time-to-fill.
A vendor management system will help your business improve its relationships with staffing agencies, ensuring they are able to tap into the right talent quickly and outpace competitors in finding top talent.
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.
Why Leading Companies Choose 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:
- Our Advanced Technology: We have the most modern and advanced VMS tech stack available today starting with the latest codebase and extending to our lightning-fast AWS microservice
- Fast Deployment: Get up and running in weeks, not months
- Transparent Pricing: Flexible pricing with no hidden costs and no set-up fees
- 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
- Open APIs - Effortless Integrations: Connect Conexis VMS to your ATS, HRIS, Finance, or BI systems in record time. Enjoy seamless data flow and instant visibility across all your tools
Looking to Switch Your VMS or Just Getting Started?
Whether you are looking to switch your VMS, or just getting started, we are here to help. Contact Us for a Free No-Obligation Consultation, See how Easy Conexis is to use by taking a quick 2 minute Self-Guided Online Demo, or Book a Personal Demo Today!
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