Contingent hiring can be a nightmare of inconsistencies, inefficiencies and risk. It is not uncommon for different departments within an organization to have their own processes, procedures and vendors for contingent hiring. With everyone off doing their own thing, it is nearly impossible to maintain quality control or costs.
Demand for contingent workers shows no signs of slowing in the near future, which means companies need to start looking at how their contingent hiring programs are being run. An effective way to rein in an out-of-control system is to work with a managed service provider (MSP).
How MSPs and VMSs Work Together To Manage A Contingent Workforce
MSPs specialize in contingent worker programs. They are an independent, unbiased intermediary between an organization’s HR team and staffing firms. MSPs manage the entire contingent labor process from sourcing to onboarding and offboarding, all the while “scoring” the vendors in the system to ensure efficiency and value.
An effective MSP provides ways to make the contingent hiring process more centralized, more cost-effective and more efficient. One of the ways in which they deliver these benefits is through the utilization of robust vendor management systems (VMS), cloud-based software programs that interact with the client’s HR systems to receive requisitions, distributes job descriptions, and then tracks metrics of success for each vendor, measuring them on things like turnaround time, candidate rejection rate, final costs, etc. Vendors that don’t hit their metrics are either removed from the system or given lower priority as new vendors are moved in.
How New VMS Technology Is Improving MSP Service Delivery
New VMS-integrated solutions are making contingent hiring faster and more efficient and they help standardize hiring practices in much the same way that practices are standardized for hiring permanent employees. When contingent hiring management managed by an MSP with a modern vendor management system, ensuring that formalized compliance protocols are adhered to across the board.
Artificial intelligence and machine learning are accelerating the effectiveness of VMS solutions, providing automated systems to enhance an MSP’s ability to provide strong matches, quickly, even for the most short-term openings in the system. Advanced analytics system also allows MSPs to identify patterns of success (and failure) among vendors earlier than ever before, ensuring proactive vendor management, rather than reactive vendor management.
VMS technology can help organizations source, hire, manage, onboard and offboard contingent workers, providing exponential value. With the right tools in place, companies can manage their contingent workforce within one platform. When considering a potential staffing MSP for your organization, make sure to include discussions of their VMS in your evaluation. MSPs that don’t embrace modern technology will not add the same value as a provider that takes advantage of every advancement in VMS technology.
If you are ready to realize the business benefits of working with an experienced MSP with a proven track record of success, the team at CSS vSource is here to help. Call us today at 856-222-0020 to learn more about the ways managed services can help you achieve your contingent hiring goals.