Take this Quiz: Do You Need a Vendor Management System? | DCR Workforce Blog

Take this Quiz: Do You Need a Vendor Management System?

The share of contingent workers in the composition of a company’s total workforce has been relentlessly trending up. This makes it essential for businesses to establish appropriate strategies for managing their contingent workforce programs. There are many ways to achieve this objective and many technologies which offer to streamline a contingent workforce program, while reducing its complexities.

Are you happy with the way your contingent workforce program is running? In other words, are you able to optimize the use of your contingent workers? Are you unhappy but resisting change, thanks to institutional inertia? How would you recognize that you need an efficient and effective tool, which can help you manage your extended workforce? I hate to play ‘doubting Thomas’ and question the efficacy of a home-grown staffing program, which includes contingent workforce management, but it’s essential to be aware of the wholly avoidable risks brought in by such a program. Nor will I say that a Vendor Management System (VMS) or a Managed Services Provider (MSP) is the only answer to your needs.

Better still, why don’t you take this quiz to determine whether there’s a need for you to adopt a VMS, or switch to new one (in case you are actually using a VMS software, but have none of this information readily available):

  1. Do you know how many contractors you have or how much you’re spending on contract labor?
  2. Do you have data on how quickly your staffing vendors respond to open positions?
  3. Do you know how long your contractors are staying? Are they leaving their assignments early or staying indefinitely?
  4. Are all your contractors compliant? Have they had your required drug and background testing done? Do you have a record from the vendor affirming that they’re compliant?
  5. Have any of your current contractors been on an internal do-not-hire list, and are any of them returning former direct employees/retirees?
  6. How much of your total non-employee spend is on overtime hours? Are these overtime hours needed?

If the answer to any of these questions is “no” or “I don’t know,” then you need a VMS!

Really, the key point to stress is that the VMS gives you insight if you aren’t able to give a definitive answer to a question about your non-employee labor – so you either need a VMS or you need a new VMS.

Other questions to consider cover your satisfaction with your existing VMS:

  1. Are you settling for satisfactory performance but unable to seek optimal solutions? If so, do you receive on-time reports on various “watch list” items and metrics?
  2. Are you relying excessively on a few individuals for managing the vendor relationship and outcomes?
  3. Do you find the traditional workplace management techniques crumbling in the face of unexpected and unpredictable issues?
  4. Are your managers finding their decision-making hampered by the complexity of factors which impact the workplace and the return on investment?
  5. Are you able to onboard the right human resources at the exact time needed for projects to avoid project disruption and cost over-runs?
  6. Can you track the performance metrics of each of your contingent workers?
  7. Do you have the necessary processes in place to address all regulatory requirements and to keep track of impeding regulatory tasks?
  8. Can you accurately map the skills of each contingent worker to gain insight into the availability of specialized and hard-to-get skill sets to enable the effective use of their skills in cross-functional and multi-project scenarios?
  9. Do you enjoy appropriate approval workflows which function as checkpoints for decisions?
  10. Can you monitor supplier performance against benchmarks and know the strengths and weaknesses of all your service providers?
  11. Do you believe that your VMS has built talent engagement and management capabilities into your current infrastructure to support the development of deep talent pools and social networking strategies?
  12. What about real-time capabilities for services and SOW management which transcend basic things like visibility or data, or even capabilities such as off-boarding contractors or services at a moment’s notice and providing up-to-the-second data on performance against project milestones for immediate corporate planning? Does your VMS help you plan your extended workforce composition itself?

Of course, a VMS is capable of delivering much more value than just the automating your contingent workforce program or bringing in the best practices.

VMS solutions which were originally developed to manage a company’s staffing suppliers, vendors and agencies, have evolved quickly to capabilities that help in managing the modern contingent workforce umbrella, which includes “classic” temporary labor, complex contract talent (SOW, services, etc.) and independent contractors. Not content to rest on its laurels, the VMS of today is building on its existing offerings to keep pace with the functionalities that are required to help take contingent workforce management into the future.

Does your VMS vendor qualify as an innovative and creative product that’s set to develop great new features? If not, then maybe it’s time you looked around. Click here to learn more!

The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.
Nick Myers is an implementation lead for DCR Workforce. He has implemented numerous programs globally and across multiple industries.