Businesses today have significantly increased their use of temporary workers to cut down on labour costs, access highly-skilled candidates during the worsening skills shortage and to improve their agility or ability to adapt to changing market conditions.
In the blog, we’re going to take a look at what exactly contingent workers are, why they are important for the future of work and what management challenges they bring your organization without effective solutions in place.
Why is the contingent workforce the future of work?
The contingent workforce has grown in recent years for a number of reasons, and is now considered by many research institutions to be the future of work.
In fact a new study from Ardent Partners, The State of Contingent Workforce Management 2020, found the top reason businesses use contingent labour is to access highly-specialized skills (68 percent). This was followed by overall workforce enhancement (62 percent), the faster speed of delivery of talented workers (51 percent) and the ability to diversify their workforce (47 percent).
Today’s non-employee workforce is a dynamic, flexible way for organizations to access highly-skilled workers, and create an agile workforce of qualified candidates that can boost innovation, productivity and the ability to rapidly change to market conditions.
What challenges does it bring?
Despite the benefits that a non-employee workforce brings your organization, it also comes with a number of challenges. That’s because the non-employee workforce is complex. It comes with thousands of data points, hundreds of temps and a wide range of vendors that must all be managed properly.
Yet many organizations are still using manual and time-consuming Excel spreadsheets, in-house databases or share-point type sites to manage their contingent workforce. This results in time-consuming and inefficient processes that prevent true visibility into your non-employee workers and the vendors you use to source and engage them.
Unfortunately, failing to implement an approach to automate and centralize your non-employee workforce management will result in wasted money, fragmented internal process, reduced access to highly-skilled candidates and a complete lack of transparency into program spend and performance.
The key to contingent workforce visibility and transparency
The key to gaining visibility and transparency into your contingent workforce, no matter the size (even if your spend is comparatively low compared to some enterprise organizations), is the use of a vendor management system (VMS).
How a Vendor Management System Improves Contingent Workforce Visibility
1. Real-Time Workforce Visibility
A VMS provides a live view of your entire contingent workforce across all locations.
You can instantly see:
- Who is on-site right now
- Which roles are filled or open
- Where staffing gaps exist
This allows teams to take immediate action instead of reacting after issues occur.
2. Centralized Workforce Data
A VMS consolidates all workforce information into a single platform.
This includes:
- Worker data and profiles
- Job requests and assignments
- Vendor activity
- Historical workforce data
This creates a single source of truth, improving accuracy and consistency across the organization.
3. Vendor Performance Visibility
A VMS enables full transparency into staffing vendor performance.
Track key metrics such as:
- Fill rates
- Time-to-fill
- Response times
- No-show rates
- Worker quality
This allows organizations to optimize vendor relationships and improve overall workforce performance.
4. Workforce Spend Transparency
A VMS provides real-time visibility into contingent labor costs.
Organizations can track:
- Bill rates vs. pay rates
- Spend by location, vendor, or role
- Overtime and hidden costs
This enables better financial control and cost optimization.
5. Live Attendance and Shift Tracking
In shift-based environments, real-time attendance tracking is critical.
A VMS allows you to:
- Monitor attendance as it happens
- Identify no-shows instantly
- Track shift coverage across locations
This reduces operational disruption and improves workforce reliability.
6. Compliance and Credential Visibility
A VMS centralizes compliance management and automates tracking.
Gain visibility into:
- Certifications and licenses
- Expiration dates
- Background checks and documentation
Automated alerts ensure compliance is maintained and risks are reduced.
7. Data-Driven Workforce Insights
A modern VMS transforms workforce data into actionable insights.
With dashboards and analytics, organizations can:
- Identify workforce trends
- Forecast labor demand
- Improve hiring efficiency
- Optimize vendor strategy
This enables proactive workforce management and better decision-making.
Additional Reading
How a VMS Improves Contingent Workforce Visibility
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:
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Modern VMS Technology - Built on the latest AWS microservices architecture and Open API
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Fast Implementation - Get up and running in under a month, free setup and training included
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Fully Branded White-Label VMS - Your Logo. Your Domain. Your Branded Communication
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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.
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