Smarter Temporary Staffing: What to Look for in a VMS
Temporary staffing remains essential across Europe and the UK, helping organisations manage fluctuating workloads, cover seasonal peaks, and access specialised skills. But today’s dynamic labour market — combined with stricter regulations and rising operational costs — demands a far more efficient way of managing contingent workers.
Manual methods involving spreadsheets, emails, and disconnected systems are increasingly unsustainable. To keep pace, both staffing agencies and employers are investing in vendor management systems (VMS) that modernise temporary workforce management.
Why the Right VMS Makes a Difference
In this blog, we explore why choosing the right VMS for temp workforce management is critical for success, and highlight the key factors to consider when selecting a solution. Further insights on this topic are available in our forthcoming white paper: “How to Choose the Right Vendor Management System (VMS): Expert Tips for Streamlining Your External Resource Management in Europe.”
Why Managing Temporary Staffing Digitally Is Now Essential
According to Eurostat, around 12% of the European workforce — more than 23 million people — are employed on temporary contracts. The UK follows similar patterns, with temporary labour playing a key role in sectors like logistics, healthcare, construction, and technology.
However, traditional approaches to temp staffing often involve:
- High administrative burdens, slowing down time-to-hire.
- Limited visibility into costs and performance.
- Increased compliance risks with regulations like GDPR and the Agency Workers Directive.
- Difficulty scaling operations efficiently.
Without the right technology, staffing agencies and their clients risk inefficiencies that impact margins, service quality, and workforce agility.
This is where a modern temporary staffing software solution — in the form of a VMS — makes all the difference.
What Does a Vendor Management System (VMS) Offer?
A Vendor Management System centralises the full management of contingent and temporary workers. Key functionalities typically include:
- Publishing job requisitions to approved staffing suppliers.
- Tracking candidate submissions, placements, and contracts.
- Automating timesheets, approvals, and invoicing.
- Ensuring compliance with labour laws and GDPR.
- Delivering real-time analytics on workforce activity and costs.
A VMS simplifies every stage of temporary workforce management, providing better control, visibility, and collaboration between all parties.
For staffing agencies — especially SMEs and those specialising in specific industries or job functions — a robust VMS supports scalable growth and stronger client service.
For employers, it means more predictable costs, faster onboarding, and improved compliance assurance.
Key Factors to Consider When Choosing a VMS
Selecting the right vendor management system for agencies or internal teams isn’t just about features — it’s about finding a solution that fits your operations today and tomorrow.
Here’s what to evaluate:
- Scalability
The VMS should support your growth. Whether you manage 100 or 10,000 contingent workers, the system must adapt easily as volumes increase.
- Integration Capabilities
Seamless integration with your payroll, HRIS, accounting, or ERP systems is essential to avoid duplicate data entry and to automate back-office processes.
- Compliance and Data Security
Look for built-in features that support GDPR compliance, agency worker rights, and working time regulations. Certification to standards like ISO 27001 is also a plus.
- Usability for All Stakeholders
The system should be intuitive not only for your internal teams but also for staffing suppliers and temp workers themselves. Mobile access and user-friendly portals can drive faster adoption.
- Reporting and Analytics
Real-time dashboards and custom reports allow you to track key performance indicators (KPIs), forecast staffing needs, manage budgets, and optimise supplier performance.
Why Smaller Agencies and Niche Providers Should Also Invest
It’s not just multinational staffing giants who benefit from a VMS. Independent staffing agencies and SMEs can gain enormous value:
- Faster response times to client demands.
- Lower administrative overheads without needing large back-office teams.
- Stronger compliance controls to meet regulatory requirements confidently.
- Enhanced client loyalty through transparent reporting and better service delivery.
Adopting a modern temporary staffing software solution positions smaller agencies to compete with larger firms on a level playing field, while protecting margins and unlocking growth opportunities.
