Managing Contingent Worker Risk with a Next Generation VMS

Find out how a VMS can help eliminate common risks encountered when using contingent workers.


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The contingent workforce is rapidly growing and as a result, companies are changing the way they manage these critical non-employee resources. Traditionally, Vendor Management Systems (VMS) have helped companies oversee their contingent workforce with a heavy emphasis on improving spend management, but as risk management becomes a higher priority, VMS best practices are shifting as well.

A clear understanding of the contingent workforce landscape and a top-tier VMS are necessary to effectively manage contingent workers.

Common Risks

Depending on the type of employee (contractors, payroll, 1099 or SOW) and the industry, there are several risk factors that must be considered:

  • Are the workers being classified correctly based on their job type?
  • Is the right insurance being provided?
  • What is the onboarding process, ongoing management and off boarding process utilized, and how does that affect classification and compliance?
  • How are background checks and drug screenings carried out?

Using a staffing supplier doesn’t alleviate the risk for hiring companies either. It’s still necessary to verify that employees have proper qualifications such as supplier ACA compliance, proper insurance and drug and background checks.

Solutions Provided by Top-Tier VMS Services

All of these risks highlight the importance of using a modern, market-leading VMS provider. These systems have evolved and do more than just provide greater visibility into the activities and scope of your workforce; they have become an aid in directing behaviors and making smarter hiring decisions. Today’s VMS produces a workflow to properly categorize and onboard employees, and assist in managing services that can fall between the cracks, such as landscaping or security.

Also, top-tier VMS providers integrate seamlessly with existing software. They have evolved from a repository of information to a system that offers predictive analysis and forecasting features that go beyond rear-view glimpses, but rather guide future decisions and behavior. Users have access to consolidated information that is time-stamped and reportable.

Managing your Contingent Workforce with Corporate United

Successful organizations need to have a clear view of their total workforce in order to reduce risk and maximize cost savings. Corporate United has partnered with a leading, independent provider of non-employee workforce management solutions, IQNavigator, to equip our members with a VMS that is dedicated to implementing total workforce management. Contact us to learn more about managing risk with Corporate United and IQNavigator.

This blog was written in collaboration with a representative from our supplier partner, IQNavigator. Erin Moore was instrumental in providing information and guiding this discussion. Erin, IQNavigator Alliance Director, has over ten years of program management, VMS and staffing experience.

Tim Holland: Senior Director - Human Resources Solutions at Corporate United
As a member of the Corporate United's Category Management Team, Tim works with our members, and prospective members, in sharing the value of our contingent workforce programs , helping them to evaluate their needs and challenges, and consults with them to choose the right solutions for their unique needs. Tim offers the CU membership expert guidance resultant of his background as a long time, former executive in the staffing industry. Tim is responsible for our numerous programs in contingent workforce including staffing, 1099 and Payroll Management, Managed Services Providers, and our Vendor Management supplier.