M y mission: Educate you on VMS as I, being "the new guy" to this industry, learn about it myself. What better way than a VMS 101 Blog Series!
A little bit about me before we jump in: My name is Louay Bachir. My background is in technology and software marketing and sales (both by education and trade). I am a Colorado native, but I don’t flaunt it with a bumper sticker! I joined IQNavigator in July of 2014. Being new to the company and the industry, I have learned a lot in a short amount of time and am still picking up more each day. There’s a lot to learn in the Vendor Management System (VMS) industry, and I thought it would be helpful to write about the journey for others who are on the same path. So, let’s jump in to the first installment of the VMS 101 Blog Series.
So You Think You Can Dance…With a Contingent Worker?
So you think you can dance with a contingent worker? What about 5,000? If you answered “no,” you may just change your mind after reading this. If you answered “yes,” well, I hope you don’t get your feet trampled!
This blog series isn’t about dancing (sorry if I let you down), but rather, how to understand, manage and control your company’s growing contingent labor program. Think this doesn’t apply to you? Read on!
The majority of companies (including yours, I bet) are seeking substantial growth. Whether organic or through acquisition, with growth comes an increased demand for talent–more and more of which is made up of non-employees. For most companies, an average of 20% of their total workforce is non-permanent, and that percentage is growing year over year.
Mismanaging this group of workers can expose your company to risk, increased expenses and operational inadequacies. All that will work against your primary goal of growth. And managing this on your own? Well, that’s like showing up to the dance in a pair of steel-toed boots!
For example, let’s say your company hires 500 temporary workers for various initiatives. They are housed in different business units in different countries. Without the proper controls in place, you may be overpaying, improperly onboarding and offboarding, sacrificing quality, misclassifying worker type, underutilizing talent, breaking local labor laws, wrongfully giving access to your systems, etc. The list goes on and on!
One missed step could cost your organization millions of dollars. Nobody wants to have to explain this to the executive team or even the media (I wish this was an exaggeration, but this happens quite often). How are the steel-toed boots working out so far? While you may think you’re in control and protecting yourself, you probably don’t know how to recover from a misstep, which will result in negative business impacts.
So how do you prevent a misstep in the first place?
You must connect the business to your temporary labor program. It starts with truly understanding all aspects of your contingent workforce program. Then, you should instill the proper controls to manage the program globally and gain the visibility needed to make intelligent and actionable decisions that directly impact your company’s goals.
A Vendor Management System (VMS) ensures that your company will optimize your investment in your non-employee workforce through:
- Cost savings
- Risk mitigation
- Process efficiencies and automation
- Supplier management
- Workforce quality
- Mobile capabilities
In other words, it will help you put on your dancing shoes and wow the crowd–your stakeholders—across your business.
We will go into more detail on these benefits throughout this VMS 101 Blog Series. I’m looking forward to sharing new insights as I keep my finger on the pulse of the industry. If you have any questions, comments or would like to see a specific topic covered, reach out. I would love to hear from you!