What is VMS Technology And Why do You Need It?

Did you know that almost every single company relies on the contingent workforce to some extent and that it is growing?

In fact, according to McKinsey’s recent American Opportunity Survey (AOS), 36% of employed respondents identify as independent workers.  This figure represents a notable increase since they estimated the US independent workforce in 2016 at 27 percent of the employed population.

Are you ready to manage a Contingent Workforce?

Flexibility and cost savings were seen as the biggest benefits to the use of non-employee workers, yet many companies confessed that they are still failing to implement an approach that can centralize how they manage their temporary workforce. 

That's where VMS Technology comes in. 

There’s no doubt about it, managing a non-employee workforce is incredibly complex. To manage contingent workers correctly, it’s absolutely essential that your organization gets rid of those time-consuming and error-prone Excel spreadsheets and uses a vendor management system (VMS) to centralize data instead.

Why you can’t rely on an Excel spreadsheet

to manage your temporary workforce

The management of temporary workers comes with thousands of data points. Without a centralized approach across your entire organization, your business will end up overpaying, lack visibility into your extended workforce, assume worker misclassification risk, and waste time on inefficient processes.

Unfortunately, if you think an Excel spreadsheet is saving your company from these issues - you’re probably wrong. For more information, check out our blog on the 5 Dangers of Using Manual Spreadsheets to Manage Staffing Vendors. 

Here’s a couple of reasons why a spreadsheet isn’t doing the job:

There’s just too much manual work: Whether your company has 100 non-employee workers or 1,000, managing a contingent workforce results in thousands of data points for your business. You have to manage multiple vendors and you have to manage hundreds or thousands of non-employee workers. Without complete visibility into each step of the vendor/worker journey, how will your company ever know if its overpaying contract workers or missing out on optimizing processes? 

It leaves your business at risk of human error: Manually typing data into an Excel spreadsheet leaves huge room for error. Keeping up with so many data entries and relationships is virtually impossible through manual processes, meaning those managing your non-employee workforce will likely miss adding crucial data or make mistakes. There’s no way you can successfully manage a non-employee workforce and save money, when you're using outdated or inaccurate information. 

To avoid these risks, it's essential that your company manages its contingent workforce with VMS technology.  

What is VMS Technology? 

VMS technology is a powerful software solution, which is typically web or cloud-based, that enables your company to better, and more strategically, manage its contingent workforce management program. 

VMS technology automates and centralizes all contingent workforce management processes in one software solution, including engaging staffing agencies, sourcing top talent, onboarding contingent workers, time entry and approval, invoicing and so much more. 

VMS technology will give your business unique insights into how your contingent workforce management program is performing so that you can make better vendor and hiring decisions in the future. 

Why does your business need VMS Technology?

By storing data from every step of your non-employee hiring and management process in one centralized location, your business will realize a huge range of benefits from the implementation of VMS technology. These include:

1. Time savings through more efficient operational processes.
2. Money savings through increased visibility into your workforce and vendor relationships.
3. Reduced risk through increased visibility into worker classification and tenure.
4. Reporting and analytics that enable fact-based decisions in continuous improvement.
5. The complete automation of your contingent workforce process.  
6. Consolidate your vendors into one centralized location with one consolidated invoice: meaning no more invoice errors.

The Conexis Difference 

Conexis VMS is the easiest vendor management system, built on the latest technology and designed with the user in mind.

Conexis VMS is built on the latest tech stack meaning we can offer a sophisticated, secure, and scalable VMS at a much lower cost than the traditional VMS providers. Not only that, but we’ve built Conexis to be an easy-to-use platform. That means less time figuring out how your VMS works and more time focusing on the core competencies that drive true business growth!

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!