If your company uses contingent workers without using any technology to support their use; you must have come across umpteen numbers of marketing posts telling you how effectively a vendor management system (VMS) can help you. That would be very true. Many companies have reaped real benefits when using a VMS to manage spend, eliminate maverick expenditures, schedule workers, track and analyze results, manage SOW projects, process timecard submissions, and mitigate employment risks. But, innovative features keep getting added to some VMSs and let us talk here about the role of a VMS in helping to recruit candidates of high quality.
Many times, the urgency behind hiring contingent workers to meet delayed/urgent project deliverables or replace an absent employee makes the process of hiring a temp extremely rushed and somewhat irregular. It is, at times, not possible for a hiring manager to know in advance which suppliers will offer the best candidates in the needed timeframe.
Without a Vendor Management System
Let me describe what a hiring manager might experience when working for a company that is not using a VMS. In these companies, when a hiring manager identifies the need for a contract worker, a written justification must be developed and a requisition submitted for approval. This may be a manual process, or may be done through some kind of online form. Either way, approval involves the hiring manager’s direct supervisor and a host of other people (finance/ HR/Procurement/ An additional layer of business or functional management). Approval times vary greatly. During this time, the hiring manager waits – not knowing what is causing the delay.
When the requisition is finally approved, the hiring manager is assigned a “qualified staffing agency recruiter” to fill the position. This individual reads the requirement/job description and then asks to interview the hiring manager to better understand the needs. The hiring manager then receives resumes of “qualified” candidates, but often sees no evidence of the required qualifications. If no candidates seem to fit, the supplier asks for another discussion to further understand the need. At this point, the hiring manager is wondering who qualified the supplier, and against what criteria! If more time elapses without positive results, the hiring manager starts screaming, a new staffing agency or recruiter is assigned, and the process begins again.
Sounds a bit overstated?
With a Vendor Management System
Anyone who has done a fair bit of contingent worker hiring will assure you that there is no overstatement here! It does not take much to convince anyone that there is a better way. A good VMS system can remove the confusion and the subjectivity in the whole process.
The functionality described above is quite basic, and should be the minimum offered by any VMS under consideration. Industry leading offerings also assist in workforce composition planning and peer benchmarking. They extend beyond agency-supplied contractors to address SOW-based project teams and independent contractors. They fully integrate with back office systems to provide true workforce intelligence.
Mail (will not be published) (required)
six + = 8
Thanks for Subscribing to DCR Blog.