When it comes to core business functions, insightful data is absolutely critical to business growth. This is particularly true for your contingent workforce, where data helps mitigate risks, improve vendor performance, reduce costs and improve workforce quality.
Yet, despite this, too few organizations are actively implementing workforce analytics capabilities to address complex business and talent needs.
In fact, a study from Deloitte found that three in four companies believe that using people analytics is “important”, but just 8 percent believe their organization is “strong” in this area.
Conexis VMS finds that this is particularly true when it comes to the contingent workforce due to the fragmented nature of management that most organizations have in place.
Unfortunately, most companies are managing their staffing agencies using fragmented processes and manual spreadsheets to track data. This results in a complete lack of visibility into contingent workforce spend, staffing agency performance and how different hiring managers engage staffing vendors.
To simplify this entire process and better manage your staffing agencies, your business should invest in a vendor management system (VMS).
What is a vendor management system?
A VMS is a centralized platform that acts as a system of record for a company’s entire staffing agency process.
By storing your entire contingent workforce program into one cloud-based software that can be accessed through a web browser, a vendor management centralizes, automates and consolidates all of the processes and data associated with managing your staffing agencies.
The result is a simple way to manage your staffing agencies, giving you complete visibility and control over contingent workforce strategy and spend.
What is a VMS’ role in managing your staffing agencies?
Staffing agencies, also known as staffing vendors or staffing firms, are used by your organization to ensure that you are able to meet real-time workforce requirements and access hot skills by engaging contingent workers.
Those staffing agencies work on behalf of your business to match temporary job candidates with relevant positions in your organization. To manage that successfully, vendor management is crucial.
Vendor management is key in selecting the right staffing agencies, ensuring they are performing to your expected standards, controlling costs and gaining visibility of your nontraditional workforce.
By consolidating your vendors into one centralized platform, a VMS allows your business to effectively track, measure and manage staffing agency performance.
How you will benefit from managing your staffing agencies with a VMS
To realize the true potential of your staffing agencies and improve your company’s ROI, successful vendor management is crucial. Here’s just a few ways the use of a VMS will help you better manage your staffing agencies:
Increased visibility into your contingent workforce
By better managing your staffing agencies with a VMS, your organization will have all the information on its vendors and contingent workers in one centralized location. No more fragmented processes and data saved across multiple Excel spreadsheets and emails.
By saving all contingent workforce information on your VMS, your company will be able to ensure a company-wide approach to vendor management that ensures all hiring managers are on the same page when it comes to engaging vendors and paying standardized rates.
The success of your contingent workforce relies on the performance of your staffing agencies. The better your vendors perform and the better they understand your needs, the higher quality your workforce will be and the faster your vendors will be able to get workers into your organization.
By consolidating your staffing agencies into a VMS, you’ll be able to better oversee vendor performance to ensure they are meeting the performance standards outlined in your initial partnership agreement. Your organization will also be able to take advantage of better pricing as a result of volume discounts from your vendors.
Greater control over spend
When your business has no visibility into its contingent workforce program and staffing agency performance, rogue spend becomes an issue. That unfortunately has a huge impact on your bottom line and business profitability.
A VMS ensures your entire company is on the same page when it comes to engaging staffing agencies. That means all hiring managers will be in compliance with the standardized rates that your business agreed with its vendors.
Automate your processes
Using spreadsheets to manage your staffing agencies is not only ineffective, it’s also time-consuming. This is time that your employees could spend focusing on core competencies that actually boost your company’s profitability.
Thankfully, a VMS automates the processes involved in staffing agency management. That includes everything from sourcing, onboarding, time entry and approval, analyzing vendor performance, payments and much more.
Want to learn more about the benefits of a vendor management system and how it can help you better manage your staffing agencies? Get a free demo from Conexis VMS today. We’ve built the first ever vendor management system designed specifically for organizations with small contingent workforce budgets.