the vms shuffle: how to match a vms to your contingent ... · if you continue to have trouble with...

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30 April 2014

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The VMS Shuffle: How to match a VMS to your

contingent workforce programme requirements

Moderator:

John Nurthen, Executive Director Global Research

Speaker:

James Waite, Director Contingent Workforce Strategies & Research, Europe

The VMS Shuffle

©2014 by Crain Communications Inc. All rights reserved.


The VMS Shuffle

How to match a VMS to your Contingent

Workforce Programme requirements and

move away from a VMS that has chosen a

different path


Contingent Workforce Industry Macro Trends

2005 2012

11%16%

Contingent % of workforce

$2.0+ Trillion spent globally on contingent work

2012% of large companies

74% VMS

66% MSP

2014

18%

Source: Staffing Industry Analysts


2013 VMS & MSP Customer Experience

Vendor

Management

Systems – not

everyone's “cup

of tea”…

n=number of individuals responding

m=number of companies represented among responses


Overall Net Promoter Score


The CW Optimization Roadmap


• 6 contingent workforce solution elements to calibrate talent

management:

– Stakeholder Alignment

– Technology Architecture

– Supply Ecosystem

– Compliance Complexity

– Talent Sensitivity

– Aggregate Labour Market

• Together, the 6 elements create a holistic view of the

complex diversity within contingent workforce management

Internal

Elements

External

Elements

CW Solution Elements


The Critical Role of a VMS

• A VMS has a critical role in managing what really matters in a

Contingent Workforce Program:

1. What are we paying for our contingent workforce and is it the right

amount?

2. Are my key stakeholders and internal customers satisfied with

contingent work talent, output and fit?

3. Is our CW programme able to scale to handle future growth and/or

contraction?

4. Who are the contingent workers on the premises and how long

have they been here?

5. Who supplies the talent and what is our legal relationship with

those companies?

6. What might someone sue us for and what are we doing to protect

ourselves?©2014 by Crain Communications Inc. All rights reserved.

The Key Issues of a VMS

• Cost of VMS participation

• VMS workflow or processes that do not encourage supplier

performance

• Poor communication & feedback on VMS quality

• Restrictions of an added technology layer

• Lack of VMS training and/or VMS skills & experience

• Talent quality issues due to badly formed sourcing model

• Unrealistically high expectations on ROI for a VMS

• Disgruntled stakeholders & Hiring Managers


The ROI Drivers of a VMS

• Ability to measure Talent quality

• Cost savings through bill rate standardisation

• Visibility & cost control over rogue spend

• Business Intelligence & Data Analytics Tools

• Improved CWP process and greater automation

• Increased visibility and business intelligence

• Supplier Performance Metrics, SLAs & KPIs

• Mitigated risk through compliant fulfilment processes

• Comprehensive solutions spend management

• Consolidated Invoicing


The Role of a VMS in Measuring Quality

©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts

The Role of a VMS in Measuring Talent Quality

• A successful VMS should provide easy & reliable access to

key Talent Quality Metrics:

– Percentage of assignments that engagement managers would rehire

the contingent worker as a contingent worker if able

– Percentage of assignments terminated by engagement manager

prior to scheduled end date due to performance

– Percentage of assignments terminated by contingent workers prior

to scheduled end date

– Percentage of contingent workers converting to employee status

– Net Promoter Score (NPS) for engagement manager satisfaction with

contingent workers


The Role of a VMS in Measuring Supplier Quality

• A successful VMS should provide easy & reliable access to

key Supplier Quality Metrics:

– Percentage of assignments on boarded after engagement

manager request date

– Percentage of submittals resulting in hires

– Percentage of assignments terminated by engagement

managers prior to scheduled end date due to

performance

– Percentage of contingent workers converting to employee

status

– Percentage of assignments terminated by contingent

workers prior to scheduled end date©2014 by Crain Communications Inc. All rights reserved.

The Role of a VMS in Capturing Incentive &

Discount Data

0% 10% 20% 30% 40% 50% 60% 70% 80%

Revenue Share

Gain Share

Statutory Discounts

Fees at Risk

Tenure Discounts

Overtime Discount

Early Payment Discount

Volume Discount

Conversion Discount

Percent of Buyers Reporting Use of Selected

Discounts/Incentives with Suppliers/MSPs

Source: Staffing Industry Analysts, Buyers Survey ©2014 by Crain Communications Inc. All rights reserved.

Role of VMS in Supporting a Sourcing Framework


Role of VMS in Supporting your Strategic Focus


Evaluating VMS General Capabilities

©2014 by Crain Communications Inc. All rights reserved.Source: Staffing Industry Analysts – 2013 VMS MSP Service Differentiators

VM

S 1

VM

S 2

VM

S 3

VM

S 4

VM

S 5

VM

S 6

VM

S 7

VM

S 8

VM

S 9

VM

S 1

0

VM

S !

!

VMS Technical Stability & Agility

• The industry standard for VMS is SaaS

– Multi-tenant architecture

– Scalability through multiple machine installation

– Multi-version support for different clients

– Customisation (look & feel, parameters, functionality)

• Key benefit is Accelerated Feature Delivery:

– The VMS is hosted centrally, so an update is decided and executed by the

VMS provider, not by customers.

– The VMS application only has a single “root” configuration, making

development testing faster.

– The vendor has access to all customer data, expediting design and regression

testing.

– The VMS provider has access to user behaviour within the application

(usually via web analytics), making it easier to identify areas to enhance.


VMS Technical Adoption Areas to Consider

• VMS SaaS latency (response times)

• Limits to customisation

• Limits to Workforce Analytics Tools

• Language, currency & new country support (and localisation)

• Data governance regulations

• Switching from one VMS SaaS vendor to another

• New version adoption

• Internet connection speeds

• Data Security & Data Escrow


VMS Technical Adoption Areas to Consider

Rich Functionality

Complex Architecture

Bespoke 3rd Party SW

Custom Integrations

High Visibility

Specialised Training

Unique Data sets merges with Logic layers

Advanced Compliance

Solutions

Low VMS Fee


VMS Migration Areas to Consider

• You may be migrating to a VMS SaaS:

– Consider why a VMS SaaS would be right for your CWP

– Are you clear on the benefits expected?

– Are business requirements, both strategic & tactical, considered?

– Do you understand the true cost of VMS SaaS adoption?

– Are you able to design solid SLA and enforce it with the VMS Vendor?

– Do you understand the implementation approach and stages?

– Are you aware of post-implementation work you may be required to

carry out?

– Are you aware of any storage capacity limits?

– Are licensing issues dealt with in the VMS contract?

– What Support is offered by the VMS Vendor?

– Are you aware of internet browser limitations?©2014 by Crain Communications Inc. All rights reserved.

Key Project Phases for VMS Adoption

• Each Phase should have a plan, budget, resources, scope,

quality criteria & risk assessment;

• Emphasis placed on: Stakeholder Alignment; Technology

Architecture; Supply Ecosystem; Compliance Complexity;

Talent Sensitivity; and Aggregate Labour Market.

VMS

Adoption

Programme

Initiation

VMS

Strategy

Definition

VMS

Programme

Award

VMS

Construct,

Implement

& Adoption

VMO/MSP

Programme

Delivery

VMS

Programme

Continuous

Improvement


Changing the Way You Use the VMS

• A VMS does not replace sound process & practice

• See the VMS from your Supplier PoV:– We don’t always receive detailed job descriptions, required and desired skills, details on cultural fit

and specifics on compensation and benefits

– We don’t have access to the managers to whom the positions report to ask questions and discuss

important details

– The client does not always provide detailed feedback about submittals

– The client appears to be using the VMS system in a manner to increase labour intensity

– The customer changes the designed and communicated hiring process, using the VMS

– The hiring process does not appears to be fair, reasonable and workable, especially when

compared with how you normally do business outside of a VMS

– My recruiter activates required to do the work is not reasonable when compared to potential

profits

– The Supplier primary contact is not reliably responsive to calls and e-mails

– This business opportunity may not to be sustainable over the weeks, months and even years ahead

– The client is not open to feedback when their VMS process is not working effectively?

– Having carefully thought about and answered these questions, we are not excited about this VMS

opportunity…


Considerations When Going Global with a VMS


The VMS Request For Proposal (RFP)

• A well written RFP for VMS Vendor proposals:

– Enables VMS respondents to clearly understand the technical &

functional requirements and needs of your CWP

– Allows VMS respondents to more accurately price their proposal and

submit higher-quality proposals

– Can help minimise proposal ambiguity, which can delay the VMS

initiative or cause you to select the wrong Vendor

– Contains specific CW programme information, goals and

requirements that will enable bidders to respond with contextual

responses

– Will contain clear unambiguous mandatory requirements from the

VMS Vendor


The VMS RFP – Mandatory Requirements

• VMS Vendor financial Stability

• Ability to execute all VMS Vendor Services

• Information on 3rd Party Relationships may requested

• VMS must be accessible via the internet & reside on secure

servers, a clear x-browser support matrix must be provided

• Website encryption must be provided and specified

• VMS Vendor must agree to convert all existing historic data

in the current VMS

• Contingent labour will not be provided to the Client by the

VMS Vendor or by a staffing company owned by the VMS

Vendor

• VMS Vendor offers hosted software (SaaS)©2014 by Crain Communications Inc. All rights reserved.

The VMS RFP – Technical Features (Examples)

• Provide a High-level diagram illustrating how the VMS is

architected – specifically object relationships

• What platform/language is the system code written in?

• What type of database(s) does the VMS support (include

versions)?

• How does the system architecture promote performance?

• How slow is the slowest page you have running in

production?

• How are errors handled within the application?

• Which elements of your application’s design best

exemplify its ease-of-use qualities?

• What ease-of-use issues do users complain about most?


The VMS RFP – Technical Features (Examples)

• When do you foresee this application’s next major re-

architecture initiative beginning and ending?

• Describe your software development lifecycle (SDLC)

• How are users added to the system and who has access

to perform this function?

• Can users be de-activated and re-activated?

• How are roles and permissions defined in your system?

• Provide a list of permissions and a description of their

enabling capacity

• How are access rights and permissions assigned to a

user role? Who typically performs this function?

• Can Client users have access to user management

tools? ©2014 by Crain Communications Inc. All rights reserved.

The VMS RFP – Focus Areas for Selection

• Project based Requisitioning (SOW)

• Does the VMS have the ability to electronically

create, submit, and respond to requests for project-

based (SOW-based) engagements?

• Can the VMS issue project-based requisitions?

• Can the VMS handle other types of services

procurement?

• Does the VMS allow for payment terms based on

milestones or deliverables?

• Does the VMS have the ability to track consultant

replacements?


The VMS RFP – Focus Areas for Selection

• Other Focus areas to concentrate on when selecting a VMS:

• Purchase Order Functionality

• Approvals & Notifications

• On & Off-Boarding functionality

• Timekeeping & Expense handling

• Invoicing & Payment

• Reporting

• Interfaces & System Integration opportunities

• VMS Hosting Specifications

• Implementation & Post-Implementation Support

• Costs & Pricing Model

The quality, completeness and specificity of your VMS RFP often

determines the success of the entire procurement process ©2014 by Crain Communications Inc. All rights reserved.

Next Webinar

Sponsored by

Big data…Bigger decisions

Wednesday 28 May 2014

7am PST/ 10am EST/ 3pm GMT/ 4pm CET

Contingent Workforce Strategies Summit

13-14 May 2014 | Lancaster Hotel | London

www.cwssummitwe.eu

the vms shuffle: how to match a vms to your contingent ... · if you continue to have trouble with...

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