In the computer and engineering world, a “stovepipe system” is a term applied to applications that could – and should – share data with other systems, but do not. If your goal is to achieve total talent management, but your vendor management system is a “stovepipe”, then the old adage, “Can’t get there from here” applies.
Achieving visibility into all aspects of labor usage has emerged as one of today’s greatest business challenges. Without complete visibility, it will not be possible to exert control over workforce spend, ensure compliance with policies, and achieve operational efficiency. Technology has greatly enhanced the ability to monitor and control individual aspects of workforce usage. Gartner Group reports that nearly 20% of large global enterprises are using three or more talent management modules of a Human Capital Management (HCM) system to manage their permanent employees. In addition, the adoption of a Vendor Management System for non-employee management is estimated at greater than 70% within these same companies. While these systems are instrumental in increasing the ability to manage segments and distinct aspects of the total workforce population, the ultimate goal is to establish centralized and standardized management of all types of talent. This requires seamless integration between these disparate systems.
Nearly every software vendor will state that its product integrates with other legacy apps. This can mean anything from manual file uploads to fully automated bi-directional flow of information. Yet at a recent industry conference I repeatedly heard complaints of vendors turning a deaf ear – or estimating costs to integrate in the hundreds of thousands of dollars!
You may think that the ability to manage both contingent and permanent employees through a single, unified platform is a low priority for your company at this point in time, and you may be right! So let’s focus on the need to manage the contingent workers and suppliers that provide them. Why is a stand-alone VMS system a problem in this environment? Ask yourself a few important questions:
Leading VMS systems include integration tool kits and adapters that support different options for connection, transport, and format, with inbound and outbound data flows. Here are some features you should look for in your vendor management system.
Through the continuous flow of information between systems, companies can standardize worker onboarding and off-boarding procedures, increase compliance with federal and local labor laws, and reduce manual efforts that result in wasted time and increased errors.
To learn more about ways in which you can derive more value from your VMS system and increase control over your entire labor force, , download a copy of DCR’s approach to Implementation and Integration.
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