When it comes to core business functions, insightful data plays a pivotal role in fostering business growth. This rings especially true for your contingent workforce, where data serves as a valuable tool in risk mitigation, vendor performance enhancement, cost reduction, and the improvement of workforce quality.
First published in 2021, this is one of our most popular blogs - updated annually and most recently in 2024. We also encourage you to visit our VMS Education Center where you will find additional resources in our library.
Surprisingly, a significant number of organizations are yet to actively implement workforce analytics capabilities to address their complex business and talent needs. In fact, according to a study conducted by Deloitte, while three in four companies acknowledge the importance of people analytics, only a mere 8 percent believe their organizations excel in this area.
This gap in analytics implementation is particularly noticeable in the management of contingent workforces due to the fragmented approaches prevalent in most organizations. Unfortunately, many companies continue to manage their staffing agencies through disjointed processes and manual spreadsheets, resulting in a lack of visibility into contingent workforce spending, staffing agency performance, and the engagement strategies of different hiring managers.
To streamline and enhance the management of staffing agencies, your business should consider investing in a Vendor Management System (VMS).
What is a vendor management system?
A VMS is a centralized platform that serves as a comprehensive record-keeping system for an organization's entire staffing agency process. By consolidating your contingent workforce program within a cloud-based software accessible through a web browser, a VMS centralizes, automates, and streamlines all processes and data related to staffing agency management.
The result is a straightforward approach to managing staffing agencies, providing you with complete visibility and control over your contingent workforce strategy and spending.
What is a VMS’ role in managing your staffing agencies?
Staffing agencies, also known as staffing vendors or staffing firms, are critical for ensuring your organization can meet real-time workforce requirements and access specialized skills through contingent workers. To achieve this successfully, vendor management is paramount.
Vendor management is crucial for selecting the right staffing agencies, ensuring they meet performance standards, controlling costs, and gaining visibility into your non-employee workforce.
By bringing your vendors into a single, centralized platform, a VMS allows your business to effectively track, measure, and manage staffing agency performance.
Benefits of managing staffing agencies with a VMS
To unlock the full potential of your staffing agencies and improve your company's Return On Investment (ROI), efficient vendor management is essential. Here are a few ways a VMS can help you better manage your staffing agencies:
- Increased Visibility into your Contingent Workforce
With a VMS, your organization can store all information about its vendors and contingent workers in one centralized location, eliminating fragmented processes and data scattered across multiple Excel spreadsheets and emails. This ensures a consistent approach to vendor management across your entire company. - Vendor Centralization
A VMS allows you to closely monitor vendor performance to maintain and improve the quality of your workforce. Additionally, it enables you to take advantage of cost savings through competitive bidding, transparency into rates and less hidden costs. - Greater Control Over Spend
By ensuring that all hiring managers adhere to standardized rates agreed upon with vendors, a VMS helps prevent rogue spending, which can significantly impact your bottom line and business profitability. This also creates an even playing field with staffing agencies. - Automation of Processes
A VMS automates various aspects of staffing agency management, from job posting, candidate submissions and onboarding to time entry, performance analysis, and payments. This not only enhances efficiency but also allows your employees to focus on core competencies that drive your company's profitability.
Interested in learning more about Vendor Management Solutions?
Whether you are looking for a new VMS Solution, or just getting started, we are here to help. See how easy Conexis is to use by taking a quick 2 minute Self-Guided Tour. Contact Us for a Free No-Obligation Consultation to discuss your workforce challenges (and get immediate actionable insights) or Book a Personal Demo Today!
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