Manufacturing VMS Case Study: How Conexis VMS Reduced Misclassification and Co-Employment Risk

The Challenge

The primary concerns included:

INCONSISTENT WORKER CLASSIFICATION

Contractors evaluated without standardized criteria, creating misclassification risk across the organization

CONTRACTORS EXCEEDING TENURE LIMITS

Long-tenured temporary workers with no automated tracking, increasing misclassification exposure

LACK OF VISIBILITY AND CONTROL

No single system of record for non-employee workers, leaving leadership without real-time insight into workforce composition

REACTIVE, MANUAL COMPLIANCE REPORTING

HR and Legal teams unable to proactively identify classification issues, relying on audit-driven rather than continuous oversight

INEFFICIENT CONTRACTOR SPEND

Redundant contractor roles across multiple locations and missed opportunities to convert appropriate long-term contractor roles into full-time positions

The Solution

After a failed internal audit, the company selected Conexis VMS to centralize its extended workforce and embed worker classification controls directly into daily operations.

Conexis VMS offered advanced functionality designed for manufacturing and light industrial companies, providing the automation and control necessary to improve contingent workforce compliance while reducing contingent workforce misclassification and co-employment risk, including:

INTEGRATED WORKER CLASSIFICATION CONTROLS

• Structured classification assessments embedded into the engagement process
• Documentation supporting independent contractor compliance and classification determinations
• Consistent worker classification criteria applied enterprise-wide

SINGLE SYSTEM OF RECORD FOR ALL WORKERS

• Centralized onboarding of all non-employee workers
• Consistent documentation across every location
  
• A defensible audit trail for every worker engagement

TENURE POLICY TRACKING AND ALERTING

• Continuous monitoring of worker tenure against company-defined limits
  
• Automated alerts to HR and leadership on classification exceptions
• Proactive risk identification in place of manual audits
  

ROLE VISIBILITY AND WORKFORCE OPTIMIZATION

• Standardized job descriptions and role data across locations
• Identification of contractor roles suitable for conversion to full-time employment
• Consolidation of similar work across the organization

EXECUTIVE REPORTING AND GOVERNANCE

• Automated leadership reporting and alerts for classification exceptions
• Tenure and classification exception tracking
• Continuous, rather than reactive, compliance oversight

The Results

Conexis VMS was implemented in under 8 weeks, with no fees for implementation, set-up, or training.

The results transformed the company’s contingent workforce risk strategy. Conexis VMS centralized all suppliers and workers into a single system, delivering immediate and measurable business impact.

REDUCED MISCLASSIFICATION RISK

• Consistent, documented classification decisions for every worker
• Multi-million-dollar co-employment exposure eliminated
• Continuous compliance monitoring across the enterprise

CONTRACTOR SPEND REDUCTION

• 11% reduction in contractor spend through role consolidation and optimization
• Improved alignment between work type and worker classification
• Increased conversion of appropriate roles to full-time employment

STRONGER GOVERNANCE AND AUDIT READINESS

• Centralized system of record for all non-employees
• Automated policy enforcement in place of manual review
• Improved confidence heading into future audits

ONGOING EXECUTIVE VISIBILITY

• Real-time insight into extended workforce risk
• Automated alerts in place of manual audits
• Data-driven workforce planning and decision-making