Post on 03-Nov-2014
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Take Charge
Best Practices for a
Contingent LaborVendor Management
System (VMS)
Copyright© 2008 All rights reserved. ATR International, Inc.
11% of the current US workforce are contract employees.
Let’s look at where we are
Best Practices for a Contingent Labor VMS
11% of the current US workforce are contract employees.
Let’s look at where we are
Best Practices for a Contingent Labor VMS
That’s 15 million people!
These 15 million contract employees are valuable assets to the companies that utilize them.
Best Practices for a Contingent Labor VMS
Contract Employees Provide
Best Practices for a Contingent Labor VMS
Best Practices for a Contingent Labor VMS
◦ Flexibility
◦ Immediate productivity
◦ Quick on-boarding
◦ Expertise
◦ Risk mitigation
◦ Candidate pipeline ◦ development
◦ Reduced downtime
◦ and much more
Contract Employees Provide
But There are Problems
Two-thirds of CFO’s do not know:
Best Practices for a Contingent Labor VMS
1. How much their companies are spending on contract labor, or
2005 study conducted by Staffing Industry Analyst, Inc.
Two-thirds of CFO’s do not know:
2005 study conducted by Staffing Industry Analyst, Inc.
2. how many staffing suppliers
they are utilizing.
1. How much their companies are spending on contract labor, or
Best Practices for a Contingent Labor VMS
In the post-Microsoft
“perma-temp” era*,
managing and tracking the
process of acquiring
contract labor has become
critical.
*U.S. Court of Appeals for the Ninth Circuit, Vizcaino v. Microsoft, May 12, 1999
There are Legal Issues
Best Practices for a Contingent Labor VMS
And There are Massive Administrative Burdens
Best Practices for a Contingent Labor VMS
Best Practices for a Contingent Labor VMS
But the VMS promise is to simplify all this.
Enter VMS
Best Practices for a Contingent Labor VMS
VMS = Vendor Management System
Best Practices for a Contingent Labor VMS
VMS is software that facilitates the
filling and tracking of contract staffing
requirements.
Best Practices for a Contingent Labor VMS
Issues Addressed by VMS
Best Practices for a Contingent Labor VMS
Too many staffing vendors
Massive administrative burden
Unauthorized expenditures
Inability to budget and forecast
1099 compliance risk management
But There are Still Problems
Best Practices for a Contingent Labor VMS
According to Staffing
Industry Analysts, the
satisfaction rate among
VMS customers is “below
average.”
• The restrictions of an added layer
• Under-trained or under qualified VMS staff
• Speed is emphasized over quality
• VMS fees born by the staffing firms
• Reduced quality of candidates due to cost • pressures
Why is Everyone so Unhappy?
Best Practices for a Contingent Labor VMS
(more)
Information provided by the National Association of Computer Consulting Businesses (NACCB)
Best Practices for a Contingent Labor VMS
• Vendor neutral means a company doesn’t know who • their top vendors are
• VMS is often used as a barrier to communication
• VMS should augment the staffing process, • not replace it
• Fill ratios avg. 15:1 for VMS and 4:1 for non-VMS
Why is Everyone so Unhappy?
So how do you implement a successful VMS?
Best Practices for a Contingent Labor VMS
Best Practices for a Contingent Labor VMS
There are best practices you can follow.
Best Practices for a Contingent Labor VMS
Some VMS Best Practices
◦ Include the hiring manager, staffing vendors and VMS staff in planning a VMS program.
◦ Provide a means for responsive communication between the hiring managers and the staffing firms.
◦ Encourage quality over speed.
◦ Track program performance and share it with vendors.
ATR International, Inc. is a leading supplier of contract labor.
There is much more to learn about best practices for implementing and using a VMS. In fact, too much to put in a slideshow. This is why we offer our free whitepaper to anyone who requests it.
Proper VMS implementation is critical to the health and success of contingent staffing.
For more information about VMS Best Practices, please login to our Resource Center for a free copy of our whitepaper.
We look forward to helping you.
Best Practices for a Contingent Labor VMS
Copyright© 2008 All rights reserved.