Everything You Need to Know About Contingent Workforce Management | Conexis VMS

What’s the Difference Between Contingent Workers and Employees?

When building an internal contingent workforce, compliance is crucial. Companies must comply with local regulations and laws, making sure not to misclassify their contingent workers as contingent when lawmakers would see them as employees.  

This can be difficult, because the difference between a contingent worker and a traditional employee isn't always clear and classification laws vary in each country, state and even city. 

There are three important factors that distinguish the difference between contingent workers and employees: 

1. Contingent Workers are not on the company payroll. Contingent Workers are hired for a defined period of time.
2. Unlike employees, contingent workers are only hired either for a defined period of time or for a specific project.
3. Contingent Workers are typically not eligible for benefits. Some contingent workers are not eligible for the same benefits that employees are entitled to, such as vacation time, sick pay, bonuses or retirement plans. However, this can become confusing as it differs depending on the category or worker and the location they are beings sourced. T4 or W2 contingent workers are sourced via a staffing agency, for example are entitled to classic employee benefits although it's typically the staffing agency who provides these benefits and not the hiring organization. 

Types of Contingent Workers

The contingent workforce is a pool of non-employee workers who are hired by an organization on an on-demand or project-by-project basis. These workers are not considered employees of a company. Instead, they work under a contract or a temporary basis. 

Unlike permanent employees, contingent workers are only with an organization for the continued existence of the job at hand - whether that be completing a specific project or working for a pre-determined period of time. 

Once this short term engagement is completed, a contingent then moves on to a new job with a different organization.  

Contingent workers come in many forms, each offering different levels of flexibility and risk. 

Independent Contractors

The term independent contractor is an umbrella term for different types of workers, such as freelancers, consultants and gig workers.

The most common types of Contingent Workers include:

Temporary workers

Temp workers are hired through staffing agencies Temporary workers are typically employed through a staffing agency, placed within your organization to fill specific staffing requirements you have. They generally work for a business for a predetermined period of time to meet seasonal demands, fill temporary positions or help companies scale up rapidly. 

Understanding the type of contingent worker you're engaging helps determine the appropriate onboarding, compliance, and management processes.

Freelancers

Freelancers are hired directly for short-term tasks, Freelancers are self-employed professionals who offer services on a proejct-by-project basis usually without long term commitments. They are independent contractors who set their own rates, choose their clients, and determine their own work schedule

Independent Contractors

Independent Contractors provide specialized services, Independent contractors, who are classified as self employed and not placed within a business by a staffing vendor, are usually hired to work on projects or to perform a defined set oof deliverables and deadlines. They are able to work from where and when they want, and are generally experts in the specific field they are working in. 

Consultant

Consultants engaged for strategic expertise. A consultant is a professional who provides advice or services in an area of specialization. 

Gig Worker

Gig workers do quick, task-based jobs using digital platforms for on-demand work.

Key Components of a Contingent Workforce Program

Your Contingent Workforce Program should include these key components: 

Centralized Visibility: 

Gain a clear view of all external workers, costs, and performance metrics

Defined Processes: 

Standardize onboarding, offboarding, compliance, and engagement.

Compliance Controls: 

Establish protocols to ensure legal and tax compliance.

Partnerships with Staffing Agencies: 

Work with reliable vendors to fill roles quickly and compliantly.

Technology Integration: 

Use a Vendor Management System (VMS) to automate workflows, track spend, and ensure compliance.

Benefits of an Effective Contingent Workforce Program

Managing your contingent workforce strategically provides numerous benefits, including:

Cost Savings:

Reduce overhead and avoid long-term employment costs. To attract full-time employees companies must spend money on benefits and other incentives that help them to attract and retain the top talent. By using contingent workers, however, companies only need to pay non-employee workers for the work they actually do.

Flexibility:

Scale labor up or down quickly to match business needs. The use of contingent workers gives companies the ability to assess company needs on an ongoing basis. Whether an organization needs expertise on a short-term basis or seasonal workers during a peak season, the contingent workforce gives companies the capability to immediately meet their workforce targets.

Access to Talent:

Engage specialized skills not available .internally. Acquiring top talent is more competitive than it has ever been before. Organizations are now contending with their competition to access in-demand talent from a small pool of workers. Using contingent workers is a great way for organizations to navigate the skills gap and hire hot skills for immediate positions. 

Faster Hiring:

Fill skill gaps and roles more quickly

Reduced Risk:

With the right tools and processes, mitigate risks related to misclassification and non-compliance

Key Challenges of Managing a Contingent Workforce

In addition to its benefits, the contingent workforce comes with a wide range of challenges that make implementing an effective contingent workforce management program a critical process for any organization. 

A contingent workforce program needs to be a company wide initiative, in which hiring managers are all using the same vendors, at the same rates and sourcing the right non-employee workers.  If not managed properly, you may encounter such issues as:

Here are some of the top contingent workforce challenges: 

⚠️ Compliance and Legal Risks: Managing a contingent workforce involves navigating complex labor laws and regulations related to worker classification, taxation, and benefits. Failure to comply can result in fines, penalties, and reputational damage.

⚠️ Workforce Integration: Ensuring effective communication, collaboration, and knowledge transfer between contingent workers and permanent employees can be challenging.

⚠️ Quality Control: Maintaining consistent quality standards across a diverse workforce, including contingent workers, can be difficult. Implementing robust quality assurance processes and regular performance evaluations can help address this issue.

⚠️ Lack of Visibility Organizations that rely on spreadsheets, internal databases, or HR tools not built for external talent face major challenges in managing contingent labor. Without a centralized system, they lack the transparency and control needed to: Monitor spending, Track vendor performance, Ensure compliance, Standardize rates and processes across the business. This visibility gap often leads to costly mistakes, fragmented data, and inconsistent hiring practices.

⚠️ Managing Vendors  Organizations often engage multiple staffing agencies to source contingent workers, which can result in fragmented processes and increased administrative overhead.

⚠️ Lack of Cost Control.  Hidden costs and rogue spend that is undetected throughout the contingent workforce program. Rogue spend in the contingent workforce arises when managers act independently, but this isn't necessarily their fault. The absence of centralized management creates this risk, hindering organization-wide visibility into your non-employee workforce and leading to inefficient processes. To effectively address rogue spend, your organization should transition from outdated manual spreadsheets to automated technologies.

How to Develop a Successful Contingent Workforce Program

Developing an effective contingent hiring strategy that guarantees your organization collaborates with suitable staffing agencies and recruits the appropriate contingent workers to fulfill your workforce needs can be challenging.

However, by implementing the right processes, management technologies, and KPIs, you can transform contingent workforce management into a streamlined program that aligns seamlessly with your company’s growth strategy.

The Essential Components of a Contingent Workforce Strategy

Define Your Business Objectives:

The overarching business objectives that your business is expecting to achieve through the use of contingent workers.

Define Your Deliverables:

Deliverables that your staffing agencies must achieve.

Assess Your Current Spend:

A clear understanding of current organizational spend.

Define Key Performance Metrics (KPIs):

A defined set of KPIs to measure staffing vendor performance.

Ensure You Have a Centralized Platform:

A centralized platform to store vendor and contingent workforce data.

Plan Regular Reviews:

Frequent reviews of your contingent workforce management program’s effectiveness.

Implement a Vendor Management System

The most crucial step is implementing a vendor management system (VMS) to enhance the management and centralization of your entire contingent workforce program. This can lead to substantial soft and hard savings for your business. 

Why a Vendor Management System is Essential in Managing a Contingent Workforce Program

Many organizations are still using manual spreadsheets, in-house databases or Sharepoint-like websites to manage their contingent workforce.

This is simply ineffective - and where a vendor management system will help.

A VMS is a cloud or web-based platform that acts as a mechanism for an organization to procure and manage its non-employee workforce. It’s a software platform that supports a company in structuring and optimizing every process related to contingent workforce management. 

By automating every process in contingent workforce management and consolidating all vendors and information into one centralized location, a vendor management system significantly improves how you manage each step in the contingent workforce management process from sourcing, hiring, tracking and invoicing non-employee workers.

This leads to better visibility into your program, significant cost savings, improved process efficiencies, and contingent workforce compliance. 

• Best Practices for Managing Contingent Labor

  Effectively managing your contingent workforce can deliver significant cost savings, agility, and access to top talent. However, without a well-structured strategy and the right tools, it can also introduce risk, inefficiency, and compliance issues. To maximize ROI and minimize risk, here are 15 best practices every organization should follow.

  1. Implement a Vendor Management System (VMS)

  A Vendor Management System (VMS) is critical for organizations looking to gain full visibility and control over their contingent labor program. A VMS centralizes every aspect of contingent workforce management—sourcing, onboarding, time tracking, invoicing, and reporting—into a single platform.

  If you're still using spreadsheets or email to manage staffing vendors, you're likely facing inconsistent processes, limited visibility, and uncontrolled spend. A VMS streamlines operations, automates workflows, and enables data-driven decisions—helping you improve vendor performance, reduce costs, and enhance program efficiency.

  👉 Learn more: What is a VMS? | Benefits of a VMS
  🎥 Watch: How to Get Started with a 1st Gen VMS with Bryan Peña, Wayne Burgess & John Clark

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  2. Build Strong Vendor Relationships

  Creating collaborative partnerships with your staffing vendors is essential. Beyond contracts and rates, regular communication helps vendors better understand your business goals and culture—leading to higher-quality placements.

  Ensure proper onboarding for staffing agencies and provide them with performance goals and feedback. Schedule recurring check-ins, such as Quarterly Business Reviews (QBRs), to measure outcomes and discuss improvement opportunities.

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  3. Measure Staffing Vendor Performance

  Without measurable performance data, it’s difficult to optimize vendor relationships. Evaluate vendors regularly using key metrics like:

  • Time-to-fill

  • Submission-to-hire ratios

  • Placement quality

  • Cost effectiveness

  Use performance scorecards to identify top performers and address underperformance.

  👉 Learn more: How to Measure Staffing Agency Performance

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  4. Conduct Regular Vendor Risk Assessments

  To mitigate risk, organizations must continuously evaluate staffing agency compliance and performance. Ensure vendors are meeting KPIs and that internal teams follow standard procedures when engaging agencies.

  Regular audits can uncover unauthorized spend, process deviations, or vendor non-compliance—protecting your company from legal and financial exposure.

  👉 Learn more: Mitigate Contingent Workforce Risk

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  5. Ensure Company-Wide VMS Adoption and Training

  A VMS is only effective if all hiring managers and departments use it consistently. Ensure your organization mandates usage across teams and provides in-depth training.

  Help employees understand how the VMS improves their day-to-day work, not just the company's outcomes. Offer ongoing support and encourage feedback to improve system usability and adoption.

  👉 Learn more: Why Adoption is Important

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  6. Choose the Right VMS for Your Business

  Not all vendor management systems are created equal. Large enterprises require robust systems with advanced features, while mid-market companies often need user-friendly, cost-effective solutions.

  Choose a VMS that fits your workforce size, hiring processes, and staffing model—whether you're managing temporary workers, direct-sourced freelancers, or permanent hires via staffing agencies.

  👉 Start here: VMS Buyer’s Guide

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  7. Align HR and Procurement Collaboration

  Contingent labor sits at the intersection of HR and Procurement. HR focuses on quality and engagement, while Procurement emphasizes cost control and compliance. Success requires both teams to collaborate and share ownership of the program.

  Unified strategies ensure consistent processes, better workforce planning, and optimized spend.

  👉 Learn more: Who Should Manage the Contingent Workforce?
  🎥 Watch: Ask The Expert: The Role of Procurement in Contingent Workforce Programs

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  8. Standardize Policies and Procedures

  One of the biggest risks in contingent labor programs is inconsistency. When hiring managers operate independently, it leads to compliance issues, overspending, and poor visibility.

  Establish clear, organization-wide policies and procedures for engaging staffing agencies and managing contingent workers. A VMS helps enforce standardization and track adherence across departments.

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  9. Partner with a Managed Service Provider (MSP) or Consultant

  If your internal team lacks the resources or expertise to manage contingent workforce operations, consider outsourcing to a Managed Service Provider (MSP) or workforce consultant. These experts help design, implement, and optimize contingent labor strategies, ensuring compliance, cost savings, and access to top talent.

  👉 Learn more: MSP and VMS Partnership

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  10. Classify Contingent Workers Correctly

  Worker misclassification is one of the most common and costly compliance issues in contingent workforce programs. Ensure your contingent workers are treated in accordance with local tax and employment laws, and not as traditional employees.

  Common misclassification indicators include:

  • Lack of autonomy in work performed

  • Performing core business functions

  • Receiving employee-like benefits

  Avoid legal risks by working with legal counsel or tax experts to properly classify each worker.

  👉 Learn more: How to Track Contingent Workforce Compliance

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  11. Gain Cross-Departmental Buy-In

  For a successful contingent workforce strategy, all stakeholders—HR, procurement, finance, IT, and department leaders—must align. Cross-functional collaboration breaks down silos, ensures visibility, and promotes accountability.

  When all teams are aligned, it becomes easier to track spending, streamline processes, and maximize workforce ROI.

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  12. Stay Updated on Industry Trends

  Contingent workforce management is evolving rapidly. Organizations must stay current with new trends, technologies, compliance regulations, and talent sourcing strategies.

  Top companies now focus on becoming preferred employers for contingent workers—offering a better candidate experience, even for temporary roles.

  👉 Read: Contingent Workforce Trends 2025

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  13. Develop a Formal Contingent Workforce Program Framework

  A documented contingent workforce program guide ensures consistent management across your organization. Your program guide should include:

  • Goals and objectives

  • Roles and responsibilities

  • Vendor selection criteria

  • Compliance standards

  • Data security protocols

  • Audit and incident response procedures

  This framework provides clear direction and accountability for all team members.

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  14. Use Comprehensive Vendor Contracts

  Clear, legally binding vendor contracts reduce ambiguity and protect your organization. Contracts should define:

  • Scope of services

  • Payment terms

  • KPIs and SLAs

  • Insurance requirements

  • Data handling and confidentiality clauses

  Regularly review contracts to ensure they reflect current business needs and legal requirements.

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  15. Optimize Your Staffing Vendor Supply Base

  Choosing the right staffing agencies is critical. Evaluate vendors based on:

  • Industry experience

  • Geographic reach

  • Specialty expertise

  • Capacity to meet your volume

  • Cultural fit and values alignment

  Avoid having too many vendors with overlapping capabilities. Conduct regular supplier audits to ensure compliance, performance, and value delivery.

The Key Performance Metrics (KPIs) to Measure Your Contingent Workforce Program

Delving into the metrics that gauge the success of a contingent workforce management program, here are four key business performance metrics performance pivotal for evaluation:

Time-to-fill

A key metric for assessing staffing vendors and internal processes is time-to-fill. This metric scrutinizes the calendar days (or hours for high volume) it takes to fill a position, from the initiation of a temporary position posting to its successful fulfillment or resource assignment commencement. Evaluating vendors on this metric is not only instrumental in their improvement but also crucial in assessing the end-to-end process efficiency, ensuring timely placement of skilled workers.

Turnover 

While turnover is anticipated in a temporary workforce, excessively high turnover signifies potential issues. It could indicate subpar worker experiences, misalignment in staffing agency placements, non-competitive rates, or delayed assignment renewals. Reducing turnover in a contingent workforce program is vital for optimizing time, effort, and the cost associated with attracting and onboarding new talent. Being able to pinpoint specific job categories, business units or geographies, to name a few, with high turnover, helps organization address root causes and improve this metric.

Time-to-submit

Distinguishing itself from time-to-fill, time-to-submit measures the duration it takes a staffing agency to submit candidates. This metric unveils insights into the efficiency of the contingent workforce management program, highlighting bottlenecks between submission and the fill/start date. Identifying factors such as resume screening timeframes, managerial delays, interview processes, and backcheck inefficiencies is crucial for streamlining the overall process.

Fill rate

The fill rate, comparing received temporary position orders to the number of job orders filled monthly by staffing agencies, serves as a pivotal metric. Low fill rates may signal inadequate processes, underperforming agencies, or rate card issues. Gaining clear visibility into fill rates empowers organizations to rectify these issues promptly.

How a VMS Enhances Visibility of your KPI's

A VMS will allows true data capture and visibility into your critical KPI’s. By consolidating all staffing agencies into a unified hub, a VMS ensures efficient monitoring, measurement, and management of vendor performance. The heightened visibility offered by a vendor management system enables businesses to meticulously monitor and track vendor performance, optimizing resource utilization and achieving workforce targets concurrently.

Streamlining processes by automating, centralizing, and consolidating all aspects of your contingent workforce program - a VMS will give you more visibility into your workforce and KPI’s and enables companies to make fact-based, strategic decisions to address problems.

Why Staffing Agencies are Key Partners in your Contingent Workforce Program

If you are looking for temporary workers to fill positions within your organization, working with a staffing agency can help you to find the best candidates for your specific needs.

Here are five reasons your business will benefit from working with a staffing agency:

You can scale your workforce up or down depending on demand

If your business experiences seasonal and fluctuating demands throughout the year, you’ll understand that it’s impossible for your current workforce to fulfill those requirements. A staffing agency is a great solution that allows you to access temporary workers who can be sourced as-and-when they are needed, enabling your business to scale its workforce up and down depending on current demand. 

Faster time-to-fill metrics

Need someone to fill a position immediately so you can fulfill a client’s demands? Staffing agencies have a substantial list of highly-skilled workers waiting to take temporary roles, meaning they can hit the ground running as soon as they are placed in a role with your organization. Cutting down your time-to-fill metrics means you will be in a far better position to fill your client’s needs and start working on new projects as they come through.

You will save money 

Recruiting and training is costly, and your business is unlikely to need every position to be filled with full-time workers. Using temporary workers to fill positions for the exact time period you need them will save your business money on recruitment, training, payroll, tax handling, worker compensation and many other costs. 

Access to specialized expertise and high volume workforces (such as warehousing and logistics)

Skilled workers are becoming increasingly difficult to find, and the growing skills shortage is only making that an ever-growing challenge for a large number of organizations. Staffing agencies have a wide network of highly-skilled and experienced workers, which means they’ll be able to place the right person in the right role no matter your requirements. 

Flexibility 

No matter what industry you are in, today’s markets are constantly shifting. Your business needs to be agile enough to adapt to those changes if it is to continue succeeding long into the future. The use of temporary workers will provide you with the flexibility you need to hire skilled workers for specific projects, allowing you to shift your focus to new tasks when required. 

How to Mitigate Contingent Workforce Compliance Risk

Unlike traditional employees, contingent workers are governed by different labor laws, tax requirements, and safety regulations. Managing these complexities manually is risky and time-consuming. Compliance failures can lead to penalties, co-employment liabilities, and damage to your company’s reputation.

A VMS reduces these risks by providing automated tools to monitor and enforce compliance continuously.  Ensure you understand the workforce regulations in the regions that your business hires contingent workers

Typically, workers are presumed to be an employee unless the organization that contracts with them can prove three things:

• The worker is free from control and direction in the performance of services.
• The worker is performing work outside the usual course of the business of the hiring company.
• The worker is customarily engaged in an independently established trade, occupation or business.

However, employment laws vary drastically depending on where a worker is hired. That’s why businesses must do everything they can to stay up-to-date with the local employment laws in the areas in which they are hiring workers. 

This can be difficult as the difference between a contingent worker and a traditional employee isn’t always clear and classification laws vary in each country, state and even city. 

Most jurisdictions, however, have online tests. Taking these tests can help your business understand local employment regulations as well as determining whether a worker falls under the employee or contingent category for new hires. 

Use a vendor management system to manage your contingent workforce program

To build a highly-strategic contingent workforce program, the implementation of a vendor management system (VMS) is crucial. This will reduce risk in all areas of your contingent workforce management strategy. 

When it comes to compliance, a vendor management system will mitigate risk by maintaining all of your information in one place. In the event of an audit or review or your contingent workers, businesses will be able to access the VMS and provide the information needed to prove that they comply with employment regulations. 

In addition, a vendor management system allows businesses to create controls - such as approvals - to ensure all hiring managers are following the same processes to mitigate contingent workforce compliance risks. 

Read more at: 10 Ways a VMS helps improves Compliance 

Define compliance processes for hiring managers 

To ensure your organization is mitigating contingent workforce compliance risk, it’s important that you implement standardized processes for hiring managers. To do this, you need to define the compliance processes that your hiring managers need to complete for all workers. Break this down into categories such as the requirements needed for a specific position or location. 

Enforce all hiring managers to complete these compliance processes

It’s all well and good having standardized processes written down, but not if they aren’t being implemented by your hiring managers. A vendor management system can help here as well. 

Through the use of a vendor management system your business can automate many of the processes associated with onboarding and offboarding contingent workers. By using automation to make it easy for hiring managers to complete compliance processes, you’ll better ensure completion of important compliance tasks.

Conduct contingent workforce program audits

To ensure your contingent workforce program is mitigating compliance risk both now and in the future, it’s important to ensure your processes are both up-to-date and being implemented properly. You can double check this by organizing audits of your program each quarter. 

Frequent audits of your program will allow your organization to examine that both your hiring managers, and your vendors, are performing the appropriate compliance processes based on your organization’s specific requirements and standards. This will help you identify which areas of your program may be putting you at risk, so you can fix them before it’s too late.

How a VMS Helps You Manage Compliance Risk in Your Contingent Workforce

1. Automated Worker Classification

Misclassifying contingent workers can result in hefty fines and legal troubles.

A Vendor Management System (VMS), can automate worker classification by ensuring all engagements comply with local labor laws and independent contractor regulations. It applies standardized criteria to determine whether a worker should be classified as an employee, contractor, or temporary worker, reducing the risk of misclassification.

2. Centralized Documentation & Record Keeping

Keep all worker and vendor compliance documentation - licenses, certifications, contracts - in a single secure system for easy tracking and auditing.

A VMS is a single source for all worker-related documentation, including contracts, tax forms, background checks, and compliance records. This centralization ensures that businesses can easily access and audit records, which is essential for regulatory and legal compliance.

3. Automated Compliance Workflows

With built-in compliance workflows, a VMS automates critical processes such as background checks, work authorization verifications, and contract approvals.

These automated workflows reduce human error and ensure all necessary compliance steps are completed before a worker begins an assignment.

4. Real-Time Labor Law and Regulatory Updates

Labor laws and regulations frequently change, creating a moving target for compliance.

Many VMS platforms integrate with legal databases to provide real-time updates on labor laws and compliance requirements, ensuring organizations remain compliant with local, national, and international regulations.

5. Enforced Rate & Billing Compliance

Worker misclassification isn’t the only financial compliance risk - billing errors and rate inconsistencies can also lead to penalties.

A VMS helps enforce compliance by setting predefined rate cards, ensuring vendors adhere to agreed-upon billing terms, and preventing unauthorized spending or overcharges.

6. Data Security & Privacy Compliance

A VMS provides advanced data security measures to ensure compliance with privacy regulations like GDPR, CCPA, and HIPAA.

Features such as encrypted records, role-based access, and audit logs help prevent unauthorized access to sensitive worker information, reducing the risk of data breaches.

7. Audit-Ready Reporting & Analytics

Compliance audits can be time-consuming and stressful.

A VMS simplifies the process with detailed audit trails, real-time compliance dashboards, and automated reporting. This ensures organizations are always prepared for internal audits or external regulatory inspections.

8. Standardized On-boarding and Off-boarding

Ensuring contingent workers meet legal and organizational requirements before starting work is crucial for compliance.

A VMS standardizes the onboarding process, ensuring workers complete required training, sign contracts, and obtain necessary certifications. It also ensures proper offboarding, including deactivating system access and finalizing compliance documentation.

9. Worker Tenure & Co-Employment Risk Mitigation

Worker tenure limits and co-employment risks are major compliance concerns for businesses using long-term contingent labor.

A VMS monitors worker tenure, flagging potential risks and ensuring organizations stay within legal guidelines to avoid claims of co-employment or benefits obligations.

10. Vendor Compliance & Performance Management

A VMS doesn’t just help companies manage workers - it also ensures that staffing vendors meet compliance requirements.

The system tracks vendor performance, monitors compliance adherence, and provides visibility into vendor contractual obligations, helping organizations hold vendors accountable for compliance standards.

Choosing the Right VMS for Your Contingent Workforce Program

Here are a few key functionalities that you should look out for in your chosen solution.

Here are some considerations when choosing the right VMS for your organization:

We recommend you review our VMS Buyer's Guide for a complete overview of all the features and functionalities that you need. 

The ability to consolidate vendors:

For clear visibility into your staffing agencies and vendor performance, a VMS should be able to consolidate all of your vendor information into one centralized location. This will improve how you manage, and analyze the performance, of those vendors.

Automation of processes:

A VMS solution is a significant improvement from managing your contingent workforce using spreadsheets because the software should be able to automate your processes. Look for a vendor management system that can automate all of the time-consuming processes associated with managing your vendors, from sourcing, onboarding, analyzing performance, payment processing and much more.

Vendor standardization:

Want to prevent rogue spend from occurring across your contingent workforce program? A VMS solution will improve vendor standardization across your business. This will act as a framework for how hiring managers across your entire company use and pay vendors. 

Centralization of your program:

Contingent workforce programs require a large amount of data, including both vendor information and worker information. The ability to centralize this in one centralized location will ensure your company has complete visibility into its program and that company policies around this workforce are being followed by all departments. This increased visibility ensures you are also able to view program performance and make better vendor/hiring decisions moving forward.

Additional VMS Features:

Other top features that you should look out for in a VMS solution should include:

1. Simplicity of use
2. Invoicing
3. Process requisitions
4. Process approvals
5. Onboarding tools
6. Scalability for company growth
7. Visibility into vendor performance