External Workforce Management

Focus on external employees

In today's working world, the boundaries between internal and external employees are becoming increasingly blurred. Half of the entire workforce budget is already spent on external employees. As an HR manager or executive, you are often faced with the challenge of finding clear answers to questions about transparency and compliance in the external workforce.

A centralised software solution can map many of these issues clearly and transparently and can be flexibly integrated into company processes. In our Specialist articles External workforce: Who is responsible for external employees? , we dive into the selection of the right vendor management system (VMS) and show you the potential benefits.

Functions and benefits of a VMS solution

A VMS solution consists of various modules that enable a wide range of functions. The basic functions include

• Mapping various forms of external labour relations: From staff leasing and services to outsourcing and work contracts.
• Supporting processes for the recruitment and management of external employees: This covers the entire range of recruitment and support.
• Contract mapping, Time Management and invoicing: These functions ensure accurate recording and management of working hours and financial transactions.
• Clear administration and reporting: For efficient personnel planning and management.
• Control and monitoring of specific compliance requirements: To ensure that all regulatory requirements are met.

Implementation of a VMS solution brings your company numerous advantages in the management of external employees:

• Digitisation of existing processes: Implementation of a VMS digitises existing processes, making handling more efficient.
• Leaner and more transparent processes: A VMS allows you to introduce efficient and transparent processes that facilitate traceability and control.
• Enhanced data reporting and sharing: Important data can be captured, analysed and shared across the company.
• Adaptability to organisational change: VMS provide flexibility as business needs change. Authorisation processes can be quickly adapted or redefined with just a few clicks.

Analysing and selecting the VMS solution

The selection process for the right vendor management system (VMS) begins with a careful analysis of your current situation. Firstly, you should clarify the goals you want to achieve with the introduction of a VMS. Based on these goals, you can analyse them in more detail and clarify questions about the population, stakeholders and areas of application. The following sample questions will help you to take the most important considerations into account.

1. Goal definition

• What specific results do you want to achieve through the implementation of the VMS?
• How should the situation change after the introduction (e.g. increased efficiency, transparency, digitisation)?
• How should the recruitment processes for external employees be harmonised?
• Should responsibility for the recruitment and management of external employees be centralised or divided up according to specific criteria?

2. Population

• How large is the population of external employees and how will it develop in the future?
• In which areas and for which services do you need external support?
• How do you plan and manage the external workforce?

3. Stakeholders

• Which stakeholders are involved (e.g. HR, procurement, finance, operational business)?
• What conflicts, concerns and fears do the stakeholder groups and individual users have?

4. Area of application

• Is the use of a VMS profitable in view of the size of the company and the associated costs (licences, implementation costs, etc.)?
• Can the VMS solution be customised to existing processes or does it only offer standard processes?
• Can process optimisation be targeted and implemented with the VMS?
• Should new processes be introduced as part of the implementation?
• Are there company guidelines (compliance, policies, etc.) that also apply to external resources?

Conclusion

The responsibility and competences for the management of external employees are closely linked to the use of a VMS solution. It is therefore important to analyse both topics jointly and holistically. The size of the company, the population of external employees, the existing competences and the expectations of a VMS play a key role in determining the choice of a suitable product.

A common criticism is that a software does not bring the hoped-for benefits and is therefore not used by the users. It is therefore crucial to involve specific user groups in the company in the process at an early stage.

The market offers numerous VMS options that differ in terms of user interface, handling, flexibility, configuration options, connection to peripheral systems and costs for licences and implementation. A careful analysis of the initial situation in your company is therefore essential in order to make an informed decision based on your criteria and requirements.

HR Campus is at your side as a strong partner to help you focus on the overarching goal of efficient management of external employees. We support you in analysing your initial situation, implementing the right VMS solution and offering support to help you successfully achieve your goals.

Sources

• https://www.onlinewhitepapers.com/human-resources/the-forces-reshaping-how-work-gets-done/
• https://t2informatik.de/wissen-kompakt/softwareeinfuehrung/
• https://www.techtarget.com/searchsap/definition/vendor-management-system-VMS
• https://www.sap.com/swiss/products/acquired-brands/what-is-fieldglass.html