How to Assess Workforce Programs + Leveraging VMS for Optimal Results
In today's fast-paced business environment, companies are constantly looking for ways to optimize their workforce, increase flexibility, and manage costs efficiently. Leveraging contingent workers, including freelancers, contractors, and temporary staff, has become a key strategy. These workers offer a flexible resource to meet varying demands and access specialized skills. However, managing a global contingent workforce program is complex. A thorough assessment and strategic plan are essential. This blog explores how Vendor Management Systems (VMS) are crucial in establishing, monitoring, and optimizing a contingent workforce program.
The Path to Contingent Workforce Program Success
Starting the journey to optimize a contingent workforce program requires a structured plan. A phased approach ensures that each organization’s specific needs are met. 3 Story Software’s team, with over 50 years of management experience in staffing recommends taking the following steps:
1. In-depth Understanding of Organizational Context
The first step involves gaining a deep understanding of the organization's unique characteristics, staff, and cultural environment. An MSP or consultant, like our partner Hays, can assist in collecting and analyzing this data, laying a solid foundation for understanding the organization’s specific needs and goals. Additionally, during the discovery phase of a VMS implementation, your VMS partner will guide you through the process, helping you uncover critical aspects and metrics of your VMS program. This comprehensive understanding allows you to tailor the workforce program effectively, ensuring it aligns with your business objectives.
Check out our blog on what to look for in a VMS partner.
2. Adaptive Iterative Approach
As the assessment progresses, new insights and data will emerge. A VMS supports this adaptive, iterative approach by providing real-time analytics, allowing the program to evolve and adapt. This ensures that the final program is fine-tuned to meet the organization’s changing requirements.
3. Enhanced Success Rates
Our experience shows that an iterative approach, backed by a VMS, significantly enhances the success rate of a contingent workforce program. Constant refinements based on ongoing findings ensure the recommendations are precisely tailored to the organization’s needs, leading to successful implementation and program maintenance aligned with business goals.
Identifying Opportunities and Gaps
Identifying gaps and opportunities within the contingent workforce program is crucial. Here’s how a VMS can help in key areas:
1. VMS Selection
Choosing the right VMS is critical. Assess available systems to ensure they meet organizational needs. A VMS should offer customization and integration with existing tools. Conduct a Proof of Concept to validate the system before full deployment.
2. Policy and Governance
Assess existing policies and governance structures for contingent workers. A VMS can identify compliance gaps, manage risks, and ensure data privacy. It also helps enforce policies into your workflow that are aligned with industry best practices and legal requirements, establishing clear governance structures.
3. Operational Support
Consider partnering with an MSP (Managed Service Provider) for operational support. An MSP can use VMS technology to streamline processes for onboarding, managing performance, and offboarding contingent workers. They can also advise on technology choices to ensure the VMS supports your program’s goals.
4. Cost Management
A VMS provides visibility into spending on staff augmentation and identifies opportunities for cost optimization. It helps standardize rates, negotiate contracts, and track costs. Establishing KPIs through a VMS allows for effective budget monitoring and control.
Benchmarking for Success
VMS technology offers significant benefits for benchmarking your contingent workforce program against industry best practices. Here are some advantages:
1. Performance Evaluation
Data from your VMS allows you to assess your program’s performance against industry standards, providing insights into its effectiveness.
2. Identifying Strengths and Weaknesses
Benchmarking helps identify areas where your program excels and where improvements are needed. This information is crucial for making informed decisions.
3. Adopting Best Practices
A VMS helps you implement best practices from top-performing programs, enabling you to adopt strategies that have proven successful.
4. Setting Realistic Goals
Benchmarking data allows you to set realistic, achievable goals for your contingent workforce program, ensuring continuous improvement and competitiveness.
Conclusion
Managing a global contingent workforce program is complex, and a VMS is essential for success. By adopting a phased and iterative approach, organizations can thoroughly understand their unique context, identify opportunities and gaps, and define a program maturity model. With a robust VMS in place, a well-managed contingent workforce program can provide a competitive advantage, enabling organizations to access specialized skills, manage costs effectively, and respond quickly to evolving business needs.