Does your business manage workers within your organization who do not work for the company on a permanent basis? Are you engaging staffing agencies to place temporary workers and independent contractors into your workforce?
If you answered yes to either of these questions, then contingent workforce management is a critical skill to learn for your hiring managers.
But what actually is contingent workforce management, what are the key challenges involved and what solutions can be used to effectively manage your non-employee workforce? Conexis VMS answers all of your contingent workforce management questions in this blog.
Let’s start by looking at what contingent workforce management actually is.
What is contingent workforce management?
Contingent workforce management is the management of your non-employee workforce.
That means it is responsible for any workers that fall under the non-permanent category, including independent contractors, contract workers, freelancers, gig workers, consultants, temps, 1099 contractors and any other worker that isn’t defined as an “employee” of your business.
In the United States alone, more than 40 percent of workers are now employed in these “alternative work arrangements.” A number that is steadily rising, and has increased by 36 percent in the past five years.
It is of course not just the workers that need to be managed in this arrangement either. Your organization is likely engaging a staffing agency to place temps and independent contractors into your organization. It’s crucial that you are able to manage vendors effectively, ensuring they are helping your company meet business objectives.
While this may sound simple, contingent workforce management is complex. It requires hiring managers to design, plan and implement a management program that aligns your entire contingent workforce strategy with your overall workforce strategy, helping you to achieve overall business goals.
With those complexities in mind, let’s take a look at some of the key challenges when it comes to managing a contingent workforce.
What are the key challenges of managing your contingent workforce?
The most common contingent workforce challenge - particularly for businesses with smaller non-employee budgets - is the use of manual spreadsheets to manage and organize their entire program.
With the use of so many staffing vendors and non-employee workers across your organization, manual and time-consuming spreadsheets only lead to challenges such as a lack of centralization of your program across the business, wasted time, rogue spend, fragmented processes, human error within your data and no visibility into your contingent workforce or how staffing agencies are performing.
This leads to two main problems. Lower workforce quality that doesn’t help you achieve business objectives, and overspending that eats into your company’s bottom line.
What are the options for effective contingent workforce management?
Effective contingent workforce management programs no longer use these time-consuming and manual spreadsheets to manage non-employee workers and staffing agencies. In fact, according to Ardent Partners, best-in-class contingent workforce management programs are using solutions such as vendor management systems (VMS) or outsourced managed services providers (MSPs).
What Solutions will help Manage Contingent Workforce?
With that in mind, let’s take a look at some of the solutions your organization can consider to significantly improve how you manage your non-employee workers and the staffing vendors you use to engage them.
Vendor management system:
A VMS is a web or cloud-based software program that facilitates contingent workforce management. It allows you to automate, and centralize, the entire vendor process with functionalities that make procurement, measuring vendor performance, onboarding workers, and payment tracking a seamless process.
Managed services provider:
With an MSP you will be outsourcing the entire responsibility of your organization’s contingent workforce management program to a third party. This third party will set up the program, interact with vendors on your company’s behalf, hire contingent workers, as well as all other steps in managing the lifecycle of both non-employee workers and staffing agencies.
About Conexis VMS
Conexis is an award-winning Vendor Management System built for organizations that want the power of enterprise software without the complexity or cost.
Leveraging 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 Leading 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:
- Our Advanced Technology: We have the most modern and advanced VMS tech stack available today starting with the latest codebase and extending to our lightning-fast AWS microservice
- Fast Deployment: Get up and running in weeks, not months
- Transparent Pricing: Flexible pricing with no hidden costs and no set-up fees
- 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
- Open APIs - Effortless Integrations: Connect Conexis VMS to your ATS, HRIS, Finance, or BI systems in record time. Enjoy seamless data flow and instant visibility across all your tools
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!
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