22 November 2021

Contingent Workforce Management: What’s the ROI of VMS Software?


On our Conexis VMS blog, we’ve talked a lot about the benefits of a vendor management system and how it can ensure your business is able to create a strategic and successful contingent workforce program.

A vendor management system (VMS) is a cloud or internet-based software system that helps internal teams to better manage their contingent workforce and staffing agencies through the automation and centralization of processes such as sourcing, onboarding, time entry, approval and payments.

By centralizing all contingent workforce management processes and consolidating vendors into one platform, a VMS gives organizations complete visibility and control over their contingent workforce program.

The benefits of VMS software include:

  • The ability to monitor and track staffing vendor performance
  • Vendor consolidation into one easy-to-use software
  • Improved visibility and control over your entire contingent workforce management program
  • The automation of contingent workforce procure to pay processes
  • Better contingent workforce documentation to ensure compliance

The use of a VMS is significantly more effective than manual spreadsheets, which typically lead to fragmented processes, rogue spend and a complete lack of visibility into what hiring managers are doing and how staffing agencies are performing. 

The problem is, however, that these fragmented processes lead to hidden issues. Most organizations don’t even know that rogue spending is running rampant throughout their contingent workforce program, and that their business is failing to hire the highest quality talent at the best possible rates. 

The businesses that do know they need a solution, still don’t see the return on investment that a VMS can bring. That’s because the ROI from a VMS typically comes in the form of soft savings that can’t be tracked. 

With that in mind, we’ve listed just a few of the top ways your business can see ROI from the implementation of VMS software:

  • Reduced costs through the creation of standardized processes and rates

There are a number of dangers that come when managing your contingent spreadsheets, including human error, fragmented processes and the time-consuming nature of working on manual spreadsheets. The biggest danger, however, is that with spreadsheets your contingent workforce program isn’t centralized. When using spreadsheets, it’s virtually impossible to build a company-wide strategy to manage contingent workers and staffing agencies.

A VMS centralizes that entire process, ensuring that all hiring managers across your business follow the same processes and pay vendors the standardized rates set by your management team. This significantly reduces inconsistent and rogue contingent workforce spending across your organization. 

  • Access the top talent in your industry, faster

Now more than ever it’s important to take innovative steps that help your business become more competitive when it comes to acquiring top talent. There’s a significant shortage in talented workers right now, and that means your business needs complete visibility into staffing agency performance to ensure you're achieving true ROI.

A vendor management system gives your organization the ability to monitor and track vendor performance with visibility into key performance indicators such as time-to-fill, time-to-submit and turnover. You can use these insights to make sure your business isn’t overpaying its vendors, and that they are delivering the results promised in your original contract.

  • Achieve operational efficiencies

Without a vendor management system in place, your HR and procurement teams likely waste countless hours entering data into a manual spreadsheet. A VMS will save you hours of wasted time and dramatically improve operational efficiencies through automation.

Through the use of VMS software your business will be able to automate key contingent workforce management processes, from sourcing, onboarding, time entry and approval, payments and much more. 

  • Enhance customer satisfaction

The key to customer satisfaction is delivering what you promised. Your business can’t do that without successfully fulfilling its workforce requirements. A VMS enhances your contingent workforce program so you can acquire top talent when you need it, helping you to better meet your customers’ expectations.

Interested in learning more about the ROI you can realize from a vendor management system? Reach out to Conexis VMS today.

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