Firstly, let’s run over a brief definition of what an FMS (Freelancer Management System) could be – quite simply in business terms it means sourcing your contingent workers directly rather than them being supplied through vendors. How does this then fit in with my VENDOR management system (VMS), if there’s no Vendor?! Well, there is a vendor and in simple terms, the FMS becomes the Vendor replacing the agency supply chain, or at least offering your organisation a way to “Direct Source” first, before using your vendors as a back-up.
The benefits of using an integrated VMS/FMS approach are numerous, but for me, it seems the biggest win is building out that engaged talent pool; for every vacancy you place on the VMS, the FMS could direct source and store ALL the applicants that are interested in that vacancy, so when future vacancies come up, your talent pool may already contain people that match and can apply automatically. As time goes on, your talent pool becomes significant in size and is more able to deliver across multiple areas of your programme. It’s proven that direct applicants (especially referrals) tend to enjoy longer tenure, and are often of a higher quality than vendor sourced. With measurable data points on re-utilisation, how soon before the system can decide who you should hire, based on all your previous hiring patterns?
It’s still early days for FMS’s and I like to think of Elevate as sitting squarely in the onsite contractor space. We’re used by organisations that are looking to bring in Contingent talent for longer periods of engagement, 3-12 months typically, often within IT or specialist skills areas. We don’t supply remote workers in other countries based on ‘star’ system validation. How do you know whether the validator has anything in common with your organisations values, and thus whether that 1-5 star validation is relevant to you? We also don’t expect customers to pay for their workers on a Credit Card or upfront either, the model is essentially the same as vendor sourced staff, monthly consolidated invoice, all time and hours either stored in the VMS or Elevate.
And, we’ve yet to touch on cost reduction; typically anywhere from 35-80% reduction on vendor spend. You do the maths on how much that could save your programme, and what kind of bonus that might mean for your team!
On September 23rd, I’ll be exploring these topics above on a webinar with Bryan Pena and Peter Reagan of ‘Staffing Industry Analysts’. The webinar is entitled Contingent Workforce Technology – What defines state of the art and why does it matter? if you’re an SIA buyer, be sure to tune in by signing up below.