A Vendor Management System (VMS) is the backbone of any contingent workforce management strategy. These systems have evolved in the past decade to become a vital solution in the contingent workforce space and a solution to manage all aspects of the contingent labor including helping companies stay compliant.


In fact, organizations that do invest in a VMS are 80% more likely to be compliant than organizations not using a VMS. As the task of keeping compliant with the management of independent contractors becomes more complex, organizations that invest in a VMS will have a clear advantage.

One way that these solutions help organizations stay compliant is by giving them the visibility, insight and data around their workforce in order to comply with federal, state and local policies. They not only help organizations handle the proper classification of employees but can provide the capabilities needed for organizations to stay compliant in the long-run.

Once compliance is in check, these organizations are also more likely to improve business results. Consider the following:

  • Organizational Efficiency: VMS users have increased total organizational efficiency 70% or more than non-VMS users.
  • Greater Visibility: When organizations leverage a VMS, they have greater visibility into their contingent labor.
  • Improved Performance: Organizations using a VMS are more likely to meet or exceed goals and objectives by 53% compare to organizations that do not.

Investing in a VMS system can have a dramatic impact on an organization’s ability to stay compliant and drive business results. Organizations considering these solutions should evaluate providers that demonstrate deep domain expertise in the contingent arena, have a proven track record to helping companies improve efficiency and stay compliant, and stay committed to customer satisfaction.

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