The temporary workforce is growing exponentially. According to our recent Ardent Partners report, the use of contingent labor is expected to grow by nearly 30 percent over the next three years – and that’s on top of the record growth the workforce has seen already. This rapid growth is good for businesses seeking flexibility and cost savings in a fluctuating economy. But it can also bring problems, complexity and unanswered questions for those organizations that do not have processes in place for managing their contingent labor. The solution? A robust Vendor Management System (VMS).
HRO Today recently published an article detailing the advances in VMS technology in response to this unprecedented growth in contingent labor, which featured Provade President Edward “EJ” Jackson’s insights on the changing industry and VMS technology. One of the most important benefits a VMS offers is visibility into your organization’s total services spend. You will find answers to all of your unanswered questions right in the data and analytics of your VMS.
With Provade’s reporting capabilities, you can quickly answer questions about:
- Your ratio of contingent-to-permanent employees
- How much you are spending on contingent labor
- Where each worker is in the on- or off-boarding process
- How heavily your workforce is skewed toward particular skills or departments
Data from your VMS can give you a quick snapshot of what is happening in your organization at any time, and you can slice and sort the data in countless ways to get fast answers to your most pressing questions. Using the data this way allows you to determine if your labor mix supports your overall business strategy. The metrics that matter to each business vary greatly, but a robust VMS allows you to slice and dice the data so that you can easily see an imbalance and react accordingly.
Taking full advantage of the analytics available in your VMS allows your organization to move away from mere transactional reporting and instead use your VMS as a decision support system.
For example, the data might uncover the potential to maximize the effectiveness of your contingent workforce by reengaging the same consultants instead of starting fresh for each project. Instead of hiring new workers each time, you can identify the most efficient and productive resources and reassign them to the current projects, which eliminates time spent on orientation and education and capitalizing on the skills they have developed. Developing successful reporting processes around your VMS capabilities can ultimately drive business performance by saving you money and resources, informing your strategy and helping you meet your objectives.