In a previous article, we looked at how technology can help bring your workforce program to the next level. Now, the next area we’ll focus on is services. In this article (part 2 in the trilogy), we review the different delivery models available to choose from, working with vendors and suppliers, and exploring direct sourcing as an additional curation and sourcing option for your organization.
Managed service providers, in-house, or hybrid? You’re certainly spoiled for choice when it comes to managing your contingent labor! But before we explore the different delivery models available today, let’s review the basics.
A managed service provider or MSP is an organization that partners with a VMS to help you completely manage your entire contingent labor program. For instance, if implementing the technology might be a stretch assignment for you, there are various resources an MSP can help with, either with a specific area or in its entirety. In-house or hybrid are two other delivery models for your consideration.
Here’s a review of each option, including working with vendors and suppliers, and finally, how to curate your talent initiatives.
Choosing Your Best-Fit Delivery Model
There are three typical ways to implement a VMS:
- Controlled entirely in-house by your HR or procurement team
- Supported by a team of experienced contingent workforce program managers
- In partnership with a trusted MSP
Here’s a rundown of how each works to help you make an informed decision based on your needs.
1) In-House Contingent Workforce Management
An in-house contingent workforce management model is what we call a technology license that allows you to have full control of your extended workforce program. It means you have all the resources within your internal organization to manage your full-time and contingent workforce, and to manage and administer your VMS.
In-house is an excellent option if you have the manpower to fully manage your program, as you’re the expert in your company culture and will be able to maintain a consistent experience for all your employees.
CONTINUE READING | ‘Is In-House Contingent Workforce Management Right for You?’
2) VectorVMS Shared Managed Services
In the middle, there’s a hybrid program unique to VectorVMS which allows you to leverage our contingent workforce program managers within our shared managed services program. This type of program allows you to have all the benefits of maintaining your program in-house, with the benefit of handing over some of the tasks that your team might not have experience in, or they lack the time.
This includes compliance audits, vendor management, consolidated invoicing and payment, direct sourcing, or any type of vendor management market rate analysis. For example, VectorVMS offers à la carte services, where you can pick and choose which services you would like an experienced team of program managers to handle on your behalf.
WANT TO KNOW MORE? WATCH THIS SHORT VIDEO | ‘Ask an Expert: Why VectorVMS Created Shared Managed Services’
3) Managed Services Provider
If implementing the technology is something you’re not able to do, choosing to work with a trusted MSP partner might be the best option for you. When vetting an MSP, make sure you choose an organization that’s completely aligned with your goals and objectives. For instance, if you’re part of a smaller company, an MSP that tends to serve global/enterprise-level clients might not be the right fit. It’s important to determine what area you’re looking to manage and how, plus identifying who might be the right fit for your business.
Working With Vendors and Suppliers
The next area in terms of services offered is your vendors or suppliers and what you receive from them. These third-party organizations are there to help you with sourcing and curating talent for your contingent workforce. In many cases, you’ll get exactly what you pay for, so while you can focus on cost-effectiveness, making sure you’re aligned with your chosen vendor will ensure the success of this partnership. Are they there to support you and fully understand your hiring goals?
Candidate quality and how they work with your program are tell-tale signs of whether or not you’re aligned. Fostering that relationship will be a key attribute to your continued success. If you treat these workers like commodities rather than highly valued talent, oftentimes that’s exactly what you’re going to get back. At the end of the day, remember that you’re trying to hire an extended part of your workforce. Contingent workers will be on-site and are likely to be representing your employer brand.
A great benefit of working with vendors is the diversity of candidates they can bring to the table. You can choose to work with vendors that are ‘minority-owned’ or ‘veteran-owned’, or you could work with vendors that specialize in recruiting candidates for marginalized groups to join your workforce. Studies have shown that more diverse workforces are often more successful. In short, workforce diversity matters.
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Once you have your vendors or suppliers in place, it’s time to consider how you will curate talent outside of your vendors. While it may seem that having vendors in place and direct sourcing are contradicting ideas, the fact is that today’s hiring talent is hugely competitive. As the employment market has shifted with the pandemic and The Great Resignation, supply and demand have made finding the right talent for your organization a more challenging process. For this reason, it’s important to leverage every type of sourcing and curation talent option available, including direct sourcing.
Direct sourcing means leveraging your organizational brand to bring in contingent workers. In the past, we’ve seen company career pages with mostly full-time employment opportunities. Today, more organizations are starting to use and leverage direct sourcing technology to attract contingent workers through their brand’s website. Not only is it a cost-savings opportunity, but you’re using the power of your brand in the marketplace to attract talent to roles that could potentially extend into full-time positions. It’s a win-win for organizations!
At VectorVMS, the direct sourcing partners we work with can help set up or build areas of your career site, help curate and secure talent, create talent pools and alumni networks, and keep the talent engaged and relevant for your brand.
RELATED READING TO DOWNLOAD | ‘The Direct Sourcing Toolkit’