Despite increasing interest among contingent workforce programs for VMS pricing models that are more aligned to the licensing approach offered by other enterprise software solutions, fee as a percentage of spend remains the predominant pricing model. There are some advantages to this for the CW program: It is simple to administer, and in the same way that the VMS benefits when volumes increase, they equally carry more risk when volumes decrease.

An increasing number of organizations are adopting a combination of fee types within a program as new and different sources of workers are managed within the VMS that mean percentage of spend is not an appropriate model. The “other” category in the accompanying chart includes a combination of fee per FTE in the system and per timesheet processed.


Source: VMS Global Landscape & Differentiators 2022