3 Key Takeaways From the Vendor Management Systems (VMS) PEAK Matrix® Assessment 2024

As organizations continue to expand globally, large enterprises have a more distributed workforce than ever before. When it comes to the global contingent workforce, Sapient Insights Group has found that 30%-40% of the global labor market is participating in some form of contingent work, with estimates rising to 50% or more within the next few years.

With the growing utilization of contingent workers across the globe, Everest Group's Vendor Management Systems (VMS) PEAK Matrix® Assessment 2024-Global offers insight into the ways a vendor management system (VMS) can help you manage your global contingent workforce. We are pleased with our standing in the report and wanted to share some key takeaways from the PEAK Matrix® Assessment.

Connecting a VMS With a Human Capital Management System to Achieve a Total Talent Management Solution

A deep integration between your human capital management (HCM) system and VMS allows your organization to leverage data from both systems to better understand workforce needs, spend, and composition. These integrations typically automate data transfer as well, increasing data efficacy across your organization. By centralizing your data, your teams only have to enter data into the system once, reducing repetitive work and streamlining the requisition and hiring process. This connection between systems also makes it easier to get a top-down view of your workforce, providing your executives and managers with a better understanding of your workers' location and which systems they have access to, and whether you're meeting local government compliance rules.

Drawing on talent pools formed by alumni, current employees, and contractors makes it easier and faster to identify the right candidate.

Your organization can also leverage these newfound connections to better assess and understand the skills of your full-time and contingent workers. Drawing on talent pools formed by alumni, current employees, and contractors makes it easier and faster to identify the right candidate while also allowing your organization to develop its current workers-whether they're full-time or contingent.

With these connections between two vital systems also comes streamlined processes-from requisition to paying contingent workers-allowing your contingent workforce management team to reduce busywork and focus on the tasks that matter most.

Gen AI and AI Functionality Are Key to Staying Ahead of the Game

As companies continue to identify the uses of Gen AI in their business, VMS solutions have begun looking at how to integrate AI into their systems to provide everything from auto-populating job descriptions to creating statements of work (SOW). AI functionality for candidate matching has also progressed significantly in recent years and offers an opportunity for companies to reduce time to fill on new requisitions.

VMS solutions are also looking for innovative ways to make contingent workers part of total workforce planning and analytics. Bolstered by integrations with an HCM, VMS solutions enable companies to plan, analyze, and model workforce scenarios based on rich datasets from across their HCM and VMS to encompass the entire workforce. A VMS provides valuable contingent worker data that can be used with a growing array of AI business tools, making it easier than ever to get an in-depth look into your organization's workforce needs, costs, and growth that will help your business gain a competitive edge.

Customization, Flexibility, and Configurability Provide Better Tools for Your Business

A VMS solution needs to adjust to your changing business processes without creating additional steps or overcomplicating them. Customizable invoicing templates, rate calculators, and workflows all provide flexibility necessary for an ever-changing market. Being able to easily adjust your workflows allows your teams to work in ways that make sense for them, while giving them the ability to pivot or change as necessary. In addition, a click-to-configure model allows teams to make adjustments themselves, eliminating the need for IT resources and saving time and money.

Being able to easily adjust your workflows allows your teams to work in ways that make sense for them, while giving them the ability to pivot or change as necessary.

Your contingent workforce strategy is also shaped by changing business needs and requires flexibility to keep your organization agile and ready for change. Businesses that embrace agility grow revenue 37% faster and generate 30% higher profits than organizations that don't prioritize agility. Having a VMS that can support your contingent workforce as your business strategy adjusts to current trends, changing compliance laws, and major global events is key to keeping your competitive edge.

These are just a few of the key points Everest Group makes in its report, providing a foundation for what it means to be on the cutting edge of VMS technology. Being named a Leader and Star Performer once again in Everest Group's Global VMS PEAK Matrix® 2024, Workday VNDLY continues to exceed industry expectations and bring value to the global VMS market. With our commitment to providing a VMS solution that is innovative, connects with your overall technology ecosystem, and simplifies important processes such as invoice reconciliation and more, Workday VNDLY continues to rank as one of the strongest global solution providers.

Read Everest Group's Vendor Management Systems (VMS) PEAK Matrix® Assessment 2024-Global to find more valuable insights into the VMS functionality to best support your workforce and how your VMS can put your business ahead of the competition.