Managing a contingent workforce can be a daunting task for any business. The recruitment process of hiring contingent workers through staffing agencies can be complex and time-consuming.
Thankfully, vendor management systems (VMS) offer a solution that simplifies the process and improves internal efficiencies - enabling organizations to build a highly-strategic contingent workforce program in-house.
In this article, we'll explore how VMS staffing software for contingent workforce works. Before we get into that, however, let’s first take a look at some of the key benefits businesses can realize when they implement a modern, easy-to-use vendor management system like Conexis VMS.
Benefits of using a vendor management system include:
✔️ Improved Visibility and Control
VMS staffing software for contingent workforce provides businesses with real-time data on their contingent workforce. This includes information on vendor performance, candidate pipelines, and workforce spend. This improves visibility and control over the contingent workforce, making it easier to manage and standardize processes across all hiring managers.
✔️ Increased Efficiency and Cost Savings
By automating the recruitment process, VMS staffing software for contingent workforce reduces administrative burden and saves time for your procurement and HR teams. This results in cost savings for the business. The software also provides a centralized platform to manage vendor relationships, reducing the risk of non-compliance and fines.
✔️ The Consolidation of Vendors in One Location
To source and engage temporary workers, your organization relies on hundreds of vendors and thousands of transactions. By consolidating these vendors and transactions in one location, you will be able to make sure that you aren’t overpaying, and you’ll be able to track vendor performance through insightful analytics.
✔️ Better Compliance and Risk Management
Compliance and risk management are important considerations when managing a contingent workforce. VMS staffing software for contingent workforce ensures compliance with regulations and provides tools to monitor vendor performance. This reduces the risk of non-compliance and fraud.
How Does VMS Staffing Software Work?
A vendor management system manages the entire procure-to-pay lifecycle of contingent workers, and even permanent employees, that are procured via a third-party staffing agency.
By centralizing all non-employee workforce data in one location, your organizations can make it easy to access and automate contingent workforce data - enabling you to build a highly-strategic contingent workforce management program.
Here are some of the processes that a VMS can help your team with:
1 - Request, Screen and Choose Contingent Workers
A vendor management system allows buyers to create, approve and post requisitions to staffing agencies, allowing the agencies to submit candidates. The buyer can then screen and accept after any screening or interviews take place - if required. A VMS will then enable the completion of a contract complete with PO's, business units, cost centers and GL codes.
2 - Worker Onboarding and Offboarding
Once a worker is selected by the organization, the VMS enables and monitors the completion of all onboarding steps including background checks, any buyer training required, along with the issuance of security and technology access. Once the arrangement with the contingent worker is complete, the VMS will enable all offboarding procedures.
3- Time and Expense Tracking
VMS staffing software for contingent workforce provides time and expense tracking features. This allows workers to go online and enter time cards, and for managers to review and approve/reject time or expense submissions. This enables the business to easily track billable hours and expenses for their contingent workers. The software provides tools for approval workflows and automated invoicing, reducing the administrative burden on the business.
4 - Automated Compliance Checks
VMS staffing software for contingent workforce can also automate compliance checks, ensuring that contingent workers are authorized to work and have the necessary certifications and licenses. This reduces the risk of non-compliance and penalties for the business.
5 - Integration With Other Systems
Many VMS staffing software platforms offer integration with other systems, such as applicant tracking systems (ATS) and human resource information systems (HRIS). This streamlines the recruitment process and ensures that data is accurate and up-to-date across all systems.
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6 - Vendor Management
Vendor management is an important aspect of managing a contingent workforce. VMS staffing software provides a centralized platform to manage relationships with staffing vendors. It allows businesses to negotiate contracts, monitor vendor performance and ensure compliance with regulations.
7 - Vendor Reporting
A VMS should have a set of standard reports, as well as give buyers the ability to create custom reporting including spend, time details in addition to KPI's like time to fill, turnover and cost savings, to name a few. These give the organization insight into how their staffing agencies are performing and how they continually improve their contingent workforce program to improve talent acquisition and cost savings moving forward.
Conexis VMS is the world’s easiest vendor management system, built on the latest technology and designed with the user in mind. Interested in learning how Conexis VMS can help you enhance how you manage your contingent workers? Book a demo today.