Importance of Efficient CWM Practices
When managed effectively, contingent workers can provide several benefits such as increased productivity, higher cost savings, and faster talent deployment. To achieve these benefits, enterprises have started to establish formal CWM programs in-house or with the help of managed service providers (MSPs).
Today, successfully implementing a CWM program requires taking into account many diverse players, including hiring managers, human resources, IT, MSPs, procurement, staffing suppliers, talent acquisition, and talent. Moreover, the growing involvement of business leaders in talent-related decision-making makes it imperative to examine their key challenges and requirements, as well.
In order to address stakeholder considerations, enterprises first need the appropriate technology stack to seamlessly monitor, manage, and pay the contingent workforce. Most importantly, stakeholders require tools that have end-to-end compliance capabilities with internal and external labor rules and regulations. As a result of this need for digitalization, the role of a company’s CIO in implementing new CWM technologies that align with overall business goals has become increasingly important.
VMS as the Primary Source of Truth for CWM
VMSs have long been the core technology to streamline and manage the contingent workforce. These systems facilitate a range of activities, including:
- Creating and approving requisitions.
- Distributing requisitions to suppliers for candidate submission, onboarding, and compliance.
- Submitting and approving time and expenses.
- Facilitating billing and invoicing.
In this highly disruptive market, some VMS providers have quickly adapted to changing enterprise requirements with next-generation technologies, deep analytics, and stakeholder-centric approaches. Most VMS providers now serve all extended workforce segments, including temporary workers, services procurement/statements of work, independent contractors, freelancers, and gig workers.
VMS and HCM Integration—a Catalyst for TTM
As TTM gains prevalence in the market, many VMS solutions are focusing on seamless integration with other enterprise technologies, especially HCM systems, to provide a comprehensive workforce view and a unified platform for effectively sourcing, hiring, and managing both permanent and contingent workers.
By integrating VMS deeper into the core HCM foundation, data can seamlessly flow between the two systems. Performance management, learning, and development are also unified. Most importantly, this eliminates the need for separate systems and manual data entry, saving time and reducing errors. The result is improved visibility, reporting and analytics, significantly lower costs, and reduced compliance risks—all leading to better overall efficiency, collaboration, and communication.