Who Needs a Vendor Management System Focused by Industry? | DCR Workforce Blog

Who Needs a Vendor Management System Focused by Industry?

industryWhen adopting a contingent workforce management program and considering the use of an external Vendor Management System (VMS) and or Managed Services Provider (MSP), you may question whether the MSP services come tailored to the needs of your specific industry. MSPs partner with clients to help achieve their financial and administrative goals, bringing great efficiencies in improved fill rates, reporting and cost savings for their staffing processes to any organization. Their support deals mainly with recruitment assistance; temporary staff procurement, training and onboarding, time keeping and invoicing along with supplier management and internal staff management – making sure that the processes are all designed in compliance with the regulatory environment.  It seems reasonable to assume that, if the vendor delivering these services provides a team that is experienced in your industry, they will better understand the ways in which work is conducted, and will provide clearer guidance to your supply base regarding the types of workers who will be most successful in completing your temporary assignments.

But what about the Vendor Management System? Does one size fit all, or should you also expect the VMS to be tailored to the needs of your industry? To answer this question, let us take a look at how these services are differentiated for different industries by looking at the job market conditions of the manufacturing healthcare industries; to illustrate our point.

The health industry today requires a number of doctors, nurses and other health service personnel to meet the growing demand for health services. They also need IT workers to incorporate cutting-edge technologies which help hospitals to provide digitally enabled services and test results. In both cases, the use of temporary workers has become an imperative, given the shortage of highly skilled independent workers. This makes it highly difficult for hospitals to operate without putting fool-proof processes in place to manage temporary workers.

Some special features which a VMS serving a healthcare organization should offer, apart from all the usual capabilities offered by such a technology, would include:

  • Support for creative approaches to talent sourcing, including a high degree of integration with social sourcing and recruiting.
  • Administration of the specific licenses, certifications, inoculations, health checks, and training required of medical personnel. This includes initial verification, maintenance of supporting documentation, and monitoring of approaching renewal dates.
  • OIG and GSA-EPLs checking to eliminate candidates who are prohibited from practicing in the healthcare profession or on the GSA exclusion list.
  • The ability to integrate with leading Electronic Medical Records (EMR) systems.

Manufacturers also have specific, unique requirements:

  • Large swings in demand and high turn-over rates among light industrial workers requires the ability to form talent pools of pre-qualified workers available for “same day” start.
  • Many manufacturing facilities are in remote locations, requiring a system that can provide remote management.
  • High worker compensation costs must be controlled through rigorous safety programs. These programs should include verification of training, tracking of the provisioning of safety equipment, and preventive programs such as fatigue prevention.
  • Unlike a traditional office environment, manufacturing plant managers need to be able to conduct group hires, forego interview procedures, and take other steps to streamline the interview process.
  • Most manufacturing sites use time reporting systems that need to be integrated into the VMS.

We also chose these two representative industries to illustrate our point because they share some special requirements:

  • Both require the VMS to manage workers with complex time reporting and compensation requirements: multiple shift calendars and schedules at varied pay differentials; flexible time allocation schemes; varying expense management requirements; compliance with government and union rate structures; and multiple time off policies. .
  • Workers in this industry do not work in traditional office environments. Mobile access to data – and data entry is an imperative. The VMS must guarantees security with secure logins and role-based access to facilities and systems.
  • The system must provide an audit trail of every transaction to verify compliance with rules and policies, as applicable to the job category and department.

In selecting the right VMS for your company, consider the features that are needed to support the unique practices and requirements of your industry. Ask the VMS vendor to demonstrate these features before making a purchase decision.

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.
Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.