In the initial wave of Vendor Management Systems (when these solutions were typically known as “eProcurement for staffing”), simple automation of core requisition and supplier management processes was enough to drive functional value to the procurement- or HR-led contingent workforce programs of that era. As the corporate world evolved, however, businesses realized that the sharp uptick in external talent utilization meant that these workers were becoming not just a bigger piece of the total workforce, but also a more critical one as well. Today, more high-priority projects are led and managed by extended workers than ever before and the percentage gap between FTEs and contingent talent continues to shrink.
In 2023, leading enterprises are diving headfirst into this new era of talent and work, having been:
- Transformed by a global pandemic, massive worldwide disruptions, and the Future of Work accelerants (e.g., remote work, DE&I, conscious leadership, workforce flexibility, etc.) that resulted from this unique era.
- “Rebooted” in such a way that omni-channel talent acquisition has nearly become table stakes rather than a “nice-to-have” element of greater workforce management.
- Reimagined to reflect an innovative convergence of various new elements of work, including flexible work models, a reliance on open talent, advanced workforce management automation, and a “power shift” to workers after several decades of leadership-level authority.
These dramatic industry changes means that legacy VMS systems are no longer powerful enough to manage an evolving external workforce. For example:
- The rampant growth of the extended workforce, which will approach 50% of all talent in 2023, means that more innovative platforms are required to handle the increased utilization of extended talent.
- The ways in which businesses need to blend HR, procurement, and talent acquisition capabilities to thrive in the year ahead translates into the need for technology that appeals to and harnesses these three critical functions, and;
- The transformation of work and talent via Future of Work accelerants must be powered by agile automation and next-generation functionality.
Extended workforce platforms blend the power and tactical value of traditional VMS solutions with next-generation functionality that supports more dynamic attributes of workforce management, such as direct sourcing, total talent intelligence, total talent acquisition, and an overall “candidate-centric” approach that speaks to both procurement and HR/talent acquisition users. Extended workforce platforms expand the power of VMS technology by offering more talent-oriented solutions that augment how a business manages nuanced, Future of Work-led aspects, such as DE&I, talent communities, services procurement, the candidate experience, the hiring manager experience, etc.
Future of Work Exchange research finds that enterprises currently leveraging extended workforce management technology have not only been enabled with many of these accelerated elements of the new world of work and talent (particularly DE&I support, remote work support, direct sourcing, total talent intelligence, etc.), but have also experienced these robust advantages over their peers that are not currently utilizing this type of agile automation.
