The Power of Data: Leveraging a VMS Tool for Strategic Workforce Decisions

Crafting a contingent workforce strategy for your company can feel like solving an intricate puzzle. You need to piece together the right combination of skills, financial resources, and availability to achieve peak productivity. However, a trial-and-error process could hold you back from finding the right solution on your timeline.

You need direction to efficiently optimize your staffing plan. A vendor management system (VMS) can provide real-time data that illuminates the full picture of your workforce dynamics—across facilities and specializations. These insights strengthen your decision-making while freeing operational resources for high-value tasks.

Here are four ways a robust VMS tool—which should be included with any reputable managed service provider (MSP) engagement—powers up your business performance:

Optimizing Hiring Costs

Strong talent acquisition is a crucial component of a comprehensive workforce strategy. When cost-efficiency is your goal, you can’t risk slow, ineffective placements that bog down your productivity and increase your cost per hire.

A VMS tool can offer clarity and transparency into your requisitions. Key metrics—including time to fill and supplier performance—are made available on a user-friendly dashboard, allowing you to assess and optimize your contingent workforce spend. With this visibility, you can ensure your hiring budget and talent strategy stay aligned with your company goals.

Strengthening Workforce Performance

Do you know where your contingent workers can contribute the most value? Gaining real-time visibility into your workforce is the key to understanding their aptitudes and unlocking their full potential.

VMS solutions give you instant access to customized data on employee performance and availability, which you may analyze to make informed decisions around resource allocation. As you identify the strengths and weaknesses in your workforce, you can assign tasks and arrange teams for high engagement, productivity, and quality with the support of your MSP.

The cost savings and revenue growth are often tremendous under this skills-based approach. According to Deloitte, fluid organizations that base workforce decisions on employee capabilities are:

• 49% more likely to maximize efficiency
• 98% more likely to retain high performers
• 107% more likely to place talent effectively

A VMS tool can even simplify long-term forecasting, predicting potential skills gaps before they occur.

Tracking Compliance Documentation

Hiring contingent workers significantly increases compliance obligations for your organization. Reporting requirements and other regulatory standards—which may vary across your locations—can complicate management while exposing you to financial and legal risks.

Partnering with an MSP alone reduces your compliance burdens. Staffing experts leverage documented processes to ensure strict adherence to regulatory requirements, as well as your background check and skills validation needs. With the added support of a VMS, you can track worker statuses, contract renewal dates, certifications, and other documents in one place. The best VMS tools even equip your third-party vendors with platform access to allow for smooth collaboration.

Reducing Administrative Costs

With the aforementioned benefits in mind, it may come as no surprise that a VMS tool can dramatically reduce your time spent on administrative tasks. Processes like data collection, workforce tracking, and compliance management are streamlined, freeing up your HR team from tedious manual efforts. This allows them to shift their focus to more strategic initiatives, such as driving cultural transformation and enhancing employee engagement—key factors that increase the productivity and value of your workforce.

Unlock Your Workforce Potential with PEAK Technical

As vendor management systems become a workforce management standard—particularly for companies with over 1,000 employees—selecting the right MSP will grow critical to meeting your long-term talent needs. The optimal provider should offer a robust VMS platform without sacrificing tailored, industry-specific insights and collaboration with your team.

PEAK Technical offers nearly 60 years of experience working with companies and professionals in the engineering, manufacturing, IT, and professional fields. We adapt our programs to your unique requirements, and our VMS reflects that customization with a dashboard designed to unlock relevant workforce and compliance insights for your team.

Reap the benefits of a quality MSP and VMS tool. Trust PEAK to empower your elite talent to produce their best work.

Gain workforce and procurement visibility with PEAK’s VMS tool.