Thursday, December 10, 2009

How Much Can VMS Really Save You? Recently, the Staffing Industry Analysts (SIA) put out a report on how much Vendor Management is saving companies that have adopted VMS as a management solution for contingent labor. According to the SIA "The results were based on findings from the 2009 Contingent Buyer Survey, conducted in September 2009, and reflect the opinions of buyer respondents from 171 large (1000+ employee) companies." Again, the report is only available to paying members of the SIA but I've listed some interesting findings from the report below. What was most interesting to me about the report was how much the overall savings on contingent labor costs was underestimated by buyers that do not use VMS systems as an agency management solution. According to the SIA report: Contingent workforce buyers who have not implemented VMS greatly underestimate the savings achieved by its adoption. Among such non-VMS users, the median projected savings from implementation was 5%--half the savings reported by those who had actually implemented VMS. Roughly a third of non-VMS users had “no idea” how much VMS would save; an additional 11% thought it would save neither time nor money, and 13% more thought it would save time but not money. The median estimated savings of contingent buyers working with a VMS model was 10%. Buyers reported that in the first year of implementation VMS saved a median of 10% of contingent workforce spend. However, buyer perception of savings varied widely, from 0% to over 25% savings. Almost all buyers—85% of them—thought VMS saved...
Top Healthcare Staffing Stories of 2009 and Predictions for 2010 Over the next few weeks both of my sons have birthdays and I plan on spending some down time with my family for the holidays. Therefore, this will be my last post until the new year. I thought I'd use this post to highlight some of the big events that affected the healthcare staffing industry in 2009 as well as make a few predictions about the industry for 2010. (is it 'twenty-ten' or 'two thousand ten'?) What the healthcare staffing industry looked like in 2009: Major downturn in spending on healthcare temporary staff. The biggest news in 2009 for the healthcare staffing industry was undoubtedly about the downturn in the economy. My second blog post ever was on the reasons hospitals were spending less on healthcare agency staff. The down turn in the economy even made people start asking the question: "is there still a nursing shortage?" From there, leading economists confirmed that not only was the economy bad but that it will take awhile for it to improve and return the healthcare staffing industry to pre-2009 levels. And finally, the Staffing Industry Analysts informed us that the nurse travel industry decreased by 44% this year and we saw this downturn reflected in the revenue loss reported by major public healthcare staffing companies. Widespread adoption of healthcare vendor management. In 2009 hospitals gave a big vote of confidence to vendor management as the preferred model for agency management. VMS has matured in the industry and delivered on its promise of...

Jason Lander

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