Can a VMS Manage Both Temporary & Permanent Workers?

In today’s rapidly evolving workforce landscape, organizations of all sizes are adopting new hiring models to stay competitive and flexible. Large enterprises are refining their hiring processes to improve workforce agility, mid-market companies are leveraging staffing agencies to close the skills gap, and small businesses are exploring new methods to access top talent.

Across all industries, one thing is clear: companies are increasingly relying on a mix of contingent (temporary, contract, freelance) and permanent workers to create more dynamic and adaptable workforces. And as this trend continues, many businesses are seeking ways to better manage both types of workers to maximize efficiency, reduce costs, and stay ahead of market fluctuations.

Why Managing Both Temporary and Permanent Workers Together is Crucial

The growing complexity of managing a mixed workforce is a challenge that many companies face today. This is resulting in poor hiring decisions, hidden costs, the ineffective use of staffing agencies and many other issues that are affecting a company's bottom line.

Whether you're dealing with temporary or permanent workers, separate systems often create silos, inefficiencies, and blind spots. Without a unified approach, businesses can struggle with poor hiring decisions, untracked costs, and the mismanagement of staffing agencies. These issues ultimately affect the company’s bottom line.

A Vendor Management System (VMS) offers a powerful solution to this challenge by enabling companies to centralize the management of all types of workers—temporary and permanent—into one streamlined platform. But how exactly does this work, and what types of companies benefit from using a VMS to manage both categories of workers?

Using a Vendor Management System (VMS) should be an essential component of your non-employee workforce management strategy, but did you know that you can also use some VMS solutions to manage your permanent workforce as well?

A VMS shouldn't just be for your contingent workers, it should be for all externally-sourced workers. That includes permanent employees sourced through a staffing agency.

Before we get into why your organization would choose to manage its permanent workers in a vendor management system, let’s first take a look at what a VMS actually is and why it’s beneficial to your non-employee workforce management.

What is VMS software?

A vendor management system is a cloud-based software platform that automates and consolidates the management of your entire non-employee workforce, and the staffing vendors you use to source them - all in one centralized location.

While many organizations are still using ineffective manual processes to manage their externally-sourced workforce, such as contingent workforce spreadsheets, VMS software will allow you to automate this entire process. Everything from engaging your staffing agencies, measuring vendor performance, sourcing independent contractors (IC) and paying them will be automated on your VMS.

The Benefits of a VMS

Through this automation, centralization and consolidation, your organization will be able to create a superior non-employee workforce management strategy.

The Benefits of using a VMS include:

improved workforce visibility;
significant money savings;
more-informed IC hiring decisions;
better vendor choices;
and much more.

Can I use a VMS to manage my externally-sourced perm employees?

The benefits of VMS software aren't just reserved for your non-employee workforce.

Some vendor management system platforms, such as Conexis VMS, have functionality that allows you to source permanent employees via staffing agencies within the platform.

This is particularly useful for mid-market businesses in which one person (or a small team) is often responsible for managing both the permanent workforce as well as contract labor.

This is completely different for large corporations, which likely have teams of procurement dedicated to contingent labor. Large businesses have completely separate teams for non-employee and permanent workforce, and the budget to invest in completely different solutions.

Mid-market companies that use staffing agencies for their contingent workforce, and have a small dedicated team to manage the hiring of both independent contractors and permanent workers, will benefit greatly from automating the process of both in one centralized platform.

Can a VMS Manage Both Temporary and Permanent Workers?

The short answer is yes. Many modern VMS platforms, including Conexis VMS, have the capabilities to manage both your contingent (temporary) and permanent workforce. But why would a company choose to do this?

Who Should Manage Both Temporary and Permanent Workers with a VMS?

This unified approach is especially beneficial for mid-market businesses or companies with small HR or procurement teams. Here’s why:

Mid-Market Companies: These businesses often rely on staffing agencies to source both temporary and permanent workers but may have limited resources to manage each workforce segment separately. A VMS solution enables them to consolidate both processes, allowing a single team to efficiently handle the hiring of permanent staff and contingent workers.
Small Businesses: For small businesses without dedicated HR or procurement teams, managing both temporary and permanent workers can be overwhelming. By integrating all hiring functions into one VMS, they can save time and reduce errors.
Growing Enterprises: Even companies in the early stages of scaling may find it advantageous to adopt a VMS early on. As the workforce grows, the need to manage both permanent and temporary workers effectively becomes more critical.

How Does a VMS Handle Both Types of Workers?

A VMS can centralize and automate the management of both types of workers by allowing businesses to:

Source permanent employees through staffing agencies directly within the platform.
Track the performance of staffing vendors supplying both permanent and temporary staff.
Manage workflows for both categories of workers in a standardized, consistent way, reducing errors and delays.
Ensure compliance with labor laws, tax regulations, and company-specific policies for both permanent and contingent workers.

This holistic view of your workforce enables better decision-making, reduces administrative overhead, and improves the efficiency of your hiring processes.

Why Technology Is Key to Contingent Workforce Success

Relying on outdated methods like spreadsheets and manual processes can result in inefficiencies and risks for your workforce management programs. A modern VMS, such as Conexis VMS, helps companies to:

Enhance visibility and control over their entire contingent workforce.
Standardize hiring processes across staffing agencies and worker categories.
Ensure compliance with labor and tax regulations.
Reduce costs while improving scalability.

Final Thoughts

The contingent workforce is here to stay. Companies that adopt structured processes and modern technology can unlock the full potential of non-employee talent while protecting themselves from compliance and operational risks.

Learn more about the Benefits of a Vendor Management System

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

Learn more about Contingent Workforce Management

Additional Reading on Contingent Workforce Management

2026 Contingent Workforce Trends
15 Contingent Workforce Best Practices
Contingent Workforce Stats you need to know
Cost Savings: How you can save 20% on your contingent workforce costs
Reducing Risk: 5 Ways to reduce contingent workforce risk with a VMS
Improving Compliance: 10 Ways a VMS helps improve contingent workforce compliance
Managing Shift-Workers: 5 Ways a VMS helps you manage shift-based workers
Improving Invoicing: 5 Ways a VMS streamlines and improves invoicing
Increasing Visibility: 5 ways a VMS gives you visibility into your CW program
Measuring Staffing Agency: How a VMS improves staffing agency performance
Reducing Turnover: 5 Tips to Reduce Turnover in Your Contingent Workforce Program
KPIs: 4 Key Metrics That Will Improve Your Temporary Workforce Management Program

Discover how Conexis VMS can help you manage your Contingent Workforce

Conexis is an award-winning Vendor Management System built for organizations that want the power of enterprise software without the complexity or cost. Built on 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 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:

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

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!