19 Dec Confidently Compliant: A VMS User’s Roadmap to Risk Free Contingent Labor
From services procurement to end-to-end management of contingent labor, planning around and managing the extended workforce is no small feat, especially when on top of it all, you’re looking to choose a Vendor management System (VMS) that delivers.
Whether your extended talent strategy is actively including contingent labor or you’re just starting to look for ways to actively include this growing cohort into your plans, consideration of workforce compliance is always top of mind for discerning HR professionals.
If you’re not yet engaging with the contingent workforce, your organization is missing opportunities like:
- Expansion of access to highly qualified talent based on skills
- Maneuvering through market fluctuations and employee shortages
- Being able to close workforce gaps quickly
- Broadened diversity opportunities
- Brand recognition
What’s at stake?
Our research shows that the contingent workforce is growing and becoming a dominant subset of many organizations’ workforce. Today, over 50% of organizations workforces comprise of extended labor, and those numbers are predicted to keep increasing.
Coupled with the opportunities above, it’s clear that the time to engage the extended workforce is now. That said, the gravity of government fines and brand damage is not one to be taken lightly.
The #1 thing that you can do to get the most out of the contingent labor at your disposal and stay bulletproof against risk and brand damage is understanding what a future-proof VMS can do for you. Below is a list of VMS must haves that will not only ensure your compliance, but will aide in growing your brand image and reputation.
Common HR compliance issues that make the road to success harder
According to Forbes, some of the most common HR compliance issues include:
- Discriminatory job listings
- Interview questions that are missing oversight
- No security and confidentiality
- Worker Misclassification
- Incomplete documentation
For compliance and brand reputation, make sure your VMS has the following:
1. Centralized storing of data and documentation
Ensure your VMS has clear and well-defined documentation capabilities for storing contracts, vendor-related data, and staying on top of new regulations. This ensures all relevant compliance documents are easily accessible at any time.
2. Integrations with other enterprise systems and regulatory databases
Integrations ensure data accuracy, regulatory check automation, streamline contract management, and provide comprehensive reporting, all vital in ensuring compliance.
3. Easy to configure capabilities that can react quickly to change
Quickly change workflows to keep up with compliance requirements and prevent costly errors.
4. Data visualization and granular control
OOB analytics tools and limitless customization in reporting leads to better decision-making. Additionally, smooth management creates a great talent experience, improving brand recognition.
5. Predictive and prescriptive capabilities with built-in AI
A crucial step to compliance is proper planning. Being able to easily dive into past data and use analytics to help predict trends before they happen is vital.
6. Contract and Service Procurement Management
Vendor contracts SOWs often contain compliance requirements and obligations. A robust VMS can facilitate this effectively, ensuring that contractual commitments align with regulatory standards. It can also provide alerts for contract renewals, ensuring that everything is reviewed and updated in a timely manner to reflect any changes.
7. Vendor risk assessments
A great VMS will have the tools available to help evaluate risk factors in vendor relationships that are customized to your specific needs.
8. Auditing and reporting capabilities that go beyond spreadsheets
OOB reporting capabilities designed by contingent workforce experts ensure that your VMS is created with your needs in mind without overcomplicating reports, Helping you minimize errors and mitigate risk.
9. Process standardization capabilities
Whether its vendor onboarding, performance management, or terminations, standardizing processes allows for faster project completion, faster time-to-hire, and less error.
10. Configurable onboarding capabilities
Ensure compliance with onboarding requirements regardless of labor category, business unit, or geography.
11. Strong access controls and security measures
Creating access controls and security measures that ensure only authorized personnel have access to sensitive documents and data is crucial for compliance and reduces the likelihood of mismanagement and discrepancies.
12. Rate card information that reflects current markets
Organizational reputation is heavily impacted by issues of pay, as it is one of the fastest ways talent can gauge the value your company puts on their work. Providing competitive wages not only improves brand reputation and recognition, it’s also one of the easiest ways to attract top talent through recognition from the workforce you’re trying to attract.
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