The use of nontraditional staffing is growing at an unprecedented rate. In fact, 77 percent of executives, according to the 2020-2021 CXC Contingent Workforce Global Trends Report, believe freelance and gig workers will “substantially” replace full-time employees within the next five years.
Yet, despite this, most organizations are still struggling to implement effective contingent workforce management practices into their business. Resulting in a complete lack of visibility and control over nontraditional staffing processes and costs.
There are two solutions that organizations can use to improve how they manage their contingent workforce program - MSP and VMS. But these are two very different things that, when combined, can provide your business with a huge number of benefits.
In this blog, we take a look at what both an MSP and VMS are, what their role in contingent workforce management is, how they benefit your organization and how they can be used together for a seamless contingent workforce program.
What is the role of an MSP?
A Managed Service Provider (MSP) is an outsourced contingent workforce organization with deep expertise, who will take over the entire responsibility of your organization’s contingent workforce management program.
That means an MSP can help you set up your contingent workforce program, manage staffing agencies, measure staffing vendor performance and complete all of the processes associated with your externally-sourced workers - from hiring, onboarding, contracting, offboarding, timesheets and approvals, payments, reporting and analytics and so much more.
By taking over the responsibility of your contingent workforce management program from your HR or procurement teams, an MSP will free your company up to work on core business functions that drive growth and profitability.
What is the role of a VMS?
A vendor management system (VMS) is a platform that allows your organization to facilitate, automate and consolidate all of the processes and data associated with managing both your staffing vendors and your external-sourced workers.
A VMS acts as a system of record for your company’s contingent workforce and external-sourced permanent employees. By centralizing all staffing agency data and processes on your VMS, you’ll be able to seamlessly source, manage your supply base.
This consolidation gives your organization complete visibility and control over staffing agency spend, and frees up your time to work on core business functions that drive true business improvement.
What are the benefits of combining MSP and VMS?
When you engage an MSP to manage your contingent workforce management program, they will typically help your organization find and implement the right Vendor Management System (VMS) solution for your company’s requirements.
This combination of managed services provider and vendor management system is hugely beneficial for your organization. In fact, a partnership with an MSP and the use of a VMS will completely revolutionize your contingent workforce program.
Here are a few benefits your business will realize from the MSP/VMS combination:
Do you want to learn more about MSP and VMS solutions, and how they work hand in hand? Get in touch with Contrax today. Our team of highly-skilled and experienced contingent workforce professionals would love to answer your questions.