When it comes to managing your contingent workforce, there are a number of options available. So how do you choose the right match for your organization’s needs? Choosing the right vendor management system (VMS) is just the start. This gives you the technology, platform, and framework that will get you started. However, there are different ways to implement this depending on your requirements.
One Technology, Three Ways to Implement
At VectorVMS, our offering is unique to the market in that we offer three different services based around the same technology. This means that you can choose the option that’s right for you.
The three options are:
Your contingent hire needs may vary greatly, according to any number of factors. These may include:
- Understanding your contingent hiring trends, including location and job types
- Assessment of internal team and their ability to manage a CWM
- Ability to be effective in change management strategy
- How much time you have to invest in the workforce program
- Overall budget
Technology License vs Shared Managed Services vs Managed Service Providers
When you’re looking to drive efficiencies and lower the costs of your contingent hires, there are a number of questions you can ask to determine which option is best suited to your needs.
At VectorVMS, we start with a consultation where we begin to assess your needs by asking key questions such as:
- Within your Contingent workforce program, do you know each location’s headcount and spend?
- Are you confident that you have current Master Service Agreements with all of your contingent vendors?
- Are your job categories well defined and assigned appropriately?
- What is your confidence level that each contingent candidate has completed all compliance and regulatory requirements?
- Are you prepared to drive effective change management?
While these questions uncover a lot about your current program, they’re just a start. The idea is to start asking yourself these types of questions to determine if bringing and managing your program in-house achieves your overall goals.
Whatever your decision, implementing a VMS requires partnership, change management, and the understanding of your end-goals.
Discover more on this topic with our on-demand webinar recording, ‘How to Determine the Best Contingent Workforce Delivery Model for You’
Is In-House Management Right for You?
As suggested above, in-house management will give you greater control in managing your contingent workforce. Over the years, it has traditionally suited smaller organizations, offering greater flexibility, lower costs, and greater control.
The rise of the gig economy has amplified the need for a VMS, no matter the size of your current program. A recent survey of Millennials by USA Today found that 40% plan to leave their full-time job in the next five years to freelance opportunities. This sector of employment is set for rapid growth as our world of work changes.
Who Typically Uses In-House Management?
In-house management is particularly suited for certain types of light-industry contingent hires. Those that recruit for the same (or a limited number) of job roles, at relatively low-volume, but need the capacity to rapidly ramp up and then scale down their production, often find managing in-house suits.
And the same principles apply for smaller organizations in different sectors. Anything where flexibility is needed, job categories are limited (and may typically be low-skilled), and are based in one location may find that keeping it in-house works well.
At the other end of the scale, we do also see exceptions to these trends. Organizations that are no longer getting value from their MSP may actually “downgrade” to manage in-house. This could be because they’re now familiar with their technology, and feel comfortable managing their VMS themselves as part of their talent acquisition strategy.
Additionally, we see cases where contingent hire patterns have changed and they no longer have the economies of scale to justify the use of an MSP. This may be another factor that determines if an in-house management approach will work best for your contingent workforce program.