Optimizing VMS ROI Through Total Workforce Strategy

A total workforce strategy includes managing the end-to-end lifecycle of both your full-time and contingent workforce. However, achieving a total workforce strategy doesn’t end with simply managing your workers.

A holistic total workforce strategy includes the following components:

• Ensuring your contingent and full-time workforce strategies are aligned
• Leveraging data and analytics for better workforce decisions
• Flexibility and scalability in workforce planning

This is where a vendor management system (VMS) can make a big difference. While it’s designed for managing contract workers, it also offers capabilities that support the components of a total workforce strategy including data collection, cost-controlling measures, statement of work (SOW) management, and more.

Utilizing these capabilities in a VMS can help your business elevate its total workforce strategy, while also realizing a greater return on investment (ROI) on your VMS.

Ecosystem Alignment and Total Workforce Management

Your technology ecosystem offers a key opportunity to both control costs and build a total workforce strategy that works for your business. A VMS that seamlessly connects with other tools in your HR tech stack can help eliminate silos and improve collaboration through easier data collection and operational visibility. Empowering your teams to work together with unified workforce data allows them to work smarter, too.

An integrated VMS and HR tech stack also provides long-term benefits. Your workforce strategy will continue to grow and evolve, making the collected data invaluable whether you’re making plans for next year, or the next five years.

As stated in the Workday VNDLY “Vendor Management System Buyer’s Guide,” “. . . it’s important to think beyond your current requirements and consider your vision for the future. The VMS you select will likely become a critical component in your organization’s evolving workforce strategy.”

It’s important to take a holistic look at the APIs your VMS offers to integrate with your human capital management (HCM) and financial software. A solid connection between these products gives you deeper insights into your workforce costs and makes it easier to identify opportunities for growth. In addition, some VMS solutions surface qualified candidates in talent pools that are shared across the entire organization, reducing the time it takes to fill positions whether they are full-time or contingent.

Data Insights for the Total Workforce

One of the biggest drivers for realizing ROI on a VMS is data. Whether it’s the ability to pull reports on tenure compliance, total costs, or even employee location across the globe, the data that’s gathered by a VMS is invaluable to your total workforce strategy. When paired with advanced invoicing or other similar features, data makes it easier for your teams to adjust their strategies for both full-time and contingent workers.

Having access to this data allows your organization to make more-informed decisions when it comes to workforce planning and management. By analyzing trends and patterns in the data, team members can identify areas for improvement and make adjustments to optimize your workforce strategy. This can lead to cost savings, increased efficiency, and better overall business performance.

The ability to track and manage talent pools and alumni can also help you tap into a network of qualified candidates who are already familiar with your organization. This not only speeds up talent acquisition but also ensures that your teams have the staff they need to be successful.

Utilizing this data across your business is key to optimizing the value as well. Finance, IT, and procurement teams can all benefit from reporting relating to your workforce. By inviting these teams to leverage data from your VMS, you’re increasing the value of the solution you’re using without spending additional dollars.

Adapting to Changing Workforce Demands and Market Conditions

Change management and scalability will help optimize your total workforce strategy and contribute to maximizing the ROI of your VMS. Whether you need to quickly bring on a large number of contingent workers or add a new process to accommodate changing laws, a VMS can easily help with both.

Self-serve configuration capabilities allow you to quickly make changes to your process without having to reach out to your VMS provider or get IT involved, saving time and IT resources in the process.

The ability to quickly scale your workforce strategy is going to be a large part of getting the ROI you’re looking for from your VMS. The ability for your business to adjust your workforce needs at exactly the right time and pivot when necessary is key to maintaining organizational agility. By leveraging capabilities within your VMS to simplify bringing in new contingent workers or provision equipment at a new location, your procurement team can streamline its processes and get it done faster.

More capabilities to look for in a VMS are included in our infographic:

For a full checklist of must-have capabilities, download our “Vendor Management System Buyer’s Guide.”