This Month Only! >> $20 off and a FREE SHRM tote with your membership and code TOTE2018!
Sign up for free email newsletters and get more SHRM content delivered to your inbox.
Is your employee handbook keeping up with the changing world of work? With SHRM's Employee Handbook Builder get peace of mind that your handbook is up-to-date.
Build competencies, establish credibility and advance your career—while earning PDCs—at SHRM Seminars in 12 cities across the U.S. this spring.
#SHRM18 will expand your perspective – on your organization, on your career, and on the way you approach HR. Join us in Chicago June 17-20, 2018
Many providers are retooling to meet clients’ new requirements
Members may download one copy of our sample forms and templates for your personal use within your organization. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organization’s culture, industry, and practices. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRM’s permission. To request permission for specific items, click on the “reuse permissions” button on the page where you find the item.
When the Kohler Company began using more contingent workers following the Great Recession, HR leaders there sought a certain type of vendor management system (VMS) to help manage the shift in workforce strategy. Two top requirements in a VMS were advanced reporting capabilities and an ability to address contractor-related security issues, said David Pittner, a senior HR analyst and head of external labor management with Wisconsin-based Kohler, which makes kitchen and bath products.
In the past, contingent staffing providers used by Kohler might submit reports on the use of their people at irregular times. “We couldn’t consistently and reliably analyze that data at one time across the company,” Pittner said, “and we could do little of the custom reporting we needed on the use and costs of contingent staff.”
Having an accurate count of contractors working in Kohler facilities also was a concern. When a company plant was hit by Hurricane Katrina in 2005, security staff there received a request from the Federal Emergency Management Agency to account for all workers who had been in the facility.
“At that point we could only tell them who our full-time employees were, not who the contractors were,” Pittner said, noting that the local office of the contingent labor provider also was closed at the time.
To address these evolving vendor management needs, Pittner and his team turned to a cloud-based VMS from vendor Fieldglass.
Companies have long used vendor management systems to automate and manage the complexities of their contingent workforce programs, from hiring to onboarding to processing invoices. But as the definition of “contingent” expands to more project-based work, and more organizations employ nonpermanent workers overseas, the capabilities required from a VMS have changed.
Today’s organizations increasingly need VMS software to manage both contingent workers hired as individuals and external companies doing project-related work, said Andrew Bartels, a research analyst with Forrester Research who follows the VMS market. Many also have a greater need to stay compliant with international labor and tax laws surrounding global use of contingent staff.
HR and procurement leaders should use some key criteria if deciding to switch VMS providers or invest in a new system, Bartels said:
In a May 2014 research report, Claire Schooley, a talent management analyst with Forrester, referenced gaps that exist in today’s HR technology between managing permanent and contingent workforces. In particular, Schooley said most applicant tracking systems lack the capabilities to address the contingent workforce, and some HR organizations feel that contingent workers fall outside their core competencies. “Although great strides have been made, more work needs to be done to allow one technology solution to meet as many of the workforce needs as possible,” Schooley wrote in the report.
SHRM OnlineStaffing Management
Keep up with the latest Staffing Management news.
You have successfully saved this page as a bookmark.
Please confirm that you want to proceed with deleting bookmark.
You have successfully removed bookmark.
Please log in as a SHRM member before saving bookmarks.
Please sign in as a SHRM member before saving bookmarks.
Please purchase a SHRM membership before saving bookmarks.
An error has occurred
Recommended for you
Choose from dozens of free webcasts on the most timely HR topics.
SHRM’s HR Vendor Directory contains over 10,000 companies