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Measuring Your Contingent Labour – You Can’t Manage What You Can’t Measure

Managing contingent (non-permanent) labour has become an increasingly difficult endeavour for businesses in recent years. New regulations and employment trends are creating all sorts of challenges for HR and Talent Acquisition professionals. For some businesses, organising their contingent labour and having complete visibility of all non-permanent employees’ sounds like something from a Sci-Fi movie, a long way off in a galaxy far, far away…


The right Vendor Management System (VMS) can be an effective tool to help businesses manage the multiple vendors that they engage with. Most Talent Acquisition and Procurement specialists know that in the recruitment space utilising a VMS can drastically improve the organisation of the hiring process for contingent labour, especially via third party agencies.


If your business is not already using a VMS to organise its supply chain and contingent labour, your internal workforce are likely doing considerably more work than they need to; and what’s more is that your business is paying for it through increased costs and increased risks.


“You Can’t Manage What You Can’t Measure”


Numerous sites/projects, multiple recruitment agencies, varying commercials, a lack of candidate visibility, a lack of auditing process and controls, little to no available reporting or data – all sounds like something out of a scary movie, but for many businesses, it’s just another day at the office.

The below is a visual representation of the communication and dealings of a business with multiple projects and sites with their respective recruitment agencies. No control, no visibility, no organisation.



Your business might be the exception. It might have very strict controls in place to ensure that hiring managers across your business follow a particular process when hiring, onboarding and managing your contingent workforce. However, that doesn’t mean that you can’t do it more efficiently and more effectively.



The right VMS will organise all of the interactions between your business and its vendors, drastically improve efficiency, reduce clerical errors and allow you to capture specific data around costs and vendor performance – resulting in an improved talent pool.


The core benefit of utilising a VMS is ultimately about data. Having reliable and timely information available at your fingertips allows you to make better short-term resourcing decisions and better long-term strategic decisions. If your business relies heavily on contingent labour and is very project-driven, being able to demonstrate control over your labour and costs can also be a unique selling point against your competition when bidding for contracts.


If it were easy – everyone would be doing it…


Introducing a VMS to a business requires introducing change. Some of your hiring managers have been operating with the same approach to contingent labour for years and any attempt at disrupting that can often result in opposition and in many cases resistance. Engaging with your internal stakeholders and getting their feedback as well as presenting them with the benefits specific to them will drastically improve implementation success and ensure overall project success.


For more information about managing your contingent labour or agency supply chain, get in touch with one of our dedicated consultants at Socium MSP.