Vendor Management Systems Best Practices

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.