This article is based on our recent ebook ‘4 Benefits of Incorporating the Extended Workforce in Your Vendor Management System’. This time, we’re looking at the ways that incorporating the extended workforce into your VMS can help save you time and money.
Tapping into your entire extended workforce through your VMS can help you drive down the cost of hire in a number of different ways. From analytics and automation through to flexible rates, using technology and integrations can make a real impact on the bottom line of managing your contingent and extended workforce.
Some of the ways integrating your extended workforce into your VMS can cut costs include:
- Flexible rates
- Analyzing ROI
- Lack of ties to supplier
- Payrolled rates
Let’s examine them in more detail.
1) Flexible Rates
While this may seem like a contradiction, having a larger number of candidates to choose from means you can be more flexible when it comes to rates. Having more options allows you the flexibility to pick the person who is right for the role and within the appropriate price range for your budget. Your talent pool can be a fantastic resource for this.
2) Analyzing ROI
Similarly, having this larger data set allows you to use the analytics within the VMS and any other integrated technologies to analyze which group, vendor, or employee(s) brings you the best ROI for your positions. All in all, this allows you to better manage your budgets and save money when balancing your workforce.
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3) Lack of Ties to a Supplier
Workers that have been sourced through direct sourcing, referrals, or freelancer systems typically do not have a vendor tied to them. Not only does that provide better rates, but it also makes it much easier to convert a candidate to full-time. This enables you to save time and money as you’re able to manage your relationships with candidates directly.
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4) Payrolled Rates
Hiring a contingent worker in the extended workforce typically comes with payroll mark-up rather than a fully sourced mark-up. That means if the supplier has to go out and find the right worker from scratch, the mark-up will be higher, which will lead to greater costs to you overall.
In this instance, using your VMS to manage your entire extended workforce gives your supplier access to your extended workforce via your VMS which could lead to reduced fees if a suitable worker is available. This reduces the need for a supplier to go and look for an entirely new candidate, which should lead to reduced fees.