A vendor management system (VMS) offers more than just managing the external staff hiring process. It can also be deployed as the foundation for a talent strategy. We aim to assist organisations as an ‘integration partner’ in successfully implementing this in practice.
Talent strategy is key
To maintain access to candidates in today’s competitive job market and in the future, a talent strategy is a necessity. Every organisation has an idea, a plan to find and attract external talent from the job market. However, in practice, this often encounters implementation problems, notes Eric Noorlander (Commercial Director, Nétive VMS).
‘We frequently observe during implementation that the strategy is not shared at all levels within organisations. HR and Procurement, for instance, may have different motivations. It’s possible that Procurement, driven by a cost-saving mandate (efficiency), may feel more responsible for the success of that mandate than for achieving the ultimate goal – optimal access to all talent.’
‘What is often lacking is the integration of the subprocesses within an organisation,’ says Chris Neddermeijer (Solution Architect, Nétive VMS), drawing on years of experience and expertise gained in VMS system implementations.
Insight and overview in data
To make an organisation’s talent strategy successful, internal support, good process design, and the use of the right tools (technology) are essential.
Nétive VMS can contribute significantly to this. ‘By using the VMS as a central hub (platform), the performance of various subprocesses can be integrated,’ states Neddermeijer. It all starts with insight into data. By making the performance of each subprocess clear, you create an overview of the output. Information on retention, career development and mobility, but also on inflow and throughput, much of it can be extracted from the VMS.
Instead of having to search for all this internal data in six different places internally, the integrations with the VMS ensure that everything is connected, like an ecosystem. It then serves as the foundation for the talent strategy. By presenting all performances clearly, you establish connections between the subprocesses. This way, you achieve a better (demand) for new or existing talent and succeed as an organisation in finding and attracting talents in a timely manner.
Four advantages in using a VMS for executing the talent strategy:
- using the VMS as a central hub helps overcome integration problems between traditional HR and procurement processes
- the VMS provides access to talent sources (useful data, information) and leads to better communication and decision-making
- the VMS encourages the creation and monitoring of a consistent company culture, making it easier to achieve the joint talent/TTM strategy
- based on data from the VMS, you measure the performance and ROI of activities and initiatives, improving the hiring strategy
Integration partner for talent strategy
The VMS is excellent as a tool (platform) to enable the execution of the talent strategy. Nétive VMS sees itself clearly playing a role as an integration partner for organisations working on a talent or TTM strategy. Because successful implementation depends not only on the software package but also on correctly setting up internal processes.
Involve a VMS provider as early as possible in defining and implementing the strategy.
Neddermeijer also has an important piece of advice for organisations looking to establish Total Talent Management (TTM) or a talent strategy: involve a Vendor Management System (VMS) supplier as early as possible in defining and executing the strategy. If the strategy is not well-thought-out, issues may arise during the implementation phase, as experienced by Nétive VMS. Strategy and operation go hand-in-hand.
Step-by-step towards Total Talent Management
‘We don’t promise to offer a single solution for a Total Talent Management (TTM) strategy. However, we are a crucial component in executing a talent strategy — translating a plan into automation and implementation,’ says Noorlander.
Therefore, an organisaation doesn’t necessarily need to have a fully developed TTM strategy to begin working on a talent strategy. In practice, few organisations have reached that stage, as Neddermeijer acknowledges. ‘We take the client’s strategy as a starting point and collaboratively work on it step-by-step. This involves progressively connecting more systems (modularly) and, through the necessary change management, gradually following the path that leads to realising the strategy.’