The transition towards greater use of externally-sourced workers has gained momentum in recent years. As a result, today’s business leaders need to find successful ways to strategically manage their contingent workforce program.
In this blog we take a look at what both MSP and VMS staffing solutions are, how they apply to your contingent workforce program, what benefits they can bring your organization and how to decide which is the best fit for your business.
What is an MSP
A Managed Service Provider (also known as an MSP) is an outsourced provider that manages either all, or part of, your organization's externally-sourced workforce program. They are responsible for the end-to-end management of your contingent workforce, from procurement, to staffing agency management, workforce planning and onboarding.
With significant industry expertise, a Managed Service Provider has in-depth knowledge, specialized processes and advanced technologies that allow them to strategically manage your company’s contingent workforce.
An MSP brings your business:
Best-in-class Expertise for managing the contingent workforce category and staffing agencies.
The ability to find quality candidates quickly.
More strategic contingent workforce management processes that reduce rogue spend and improve visibility.
Standardized processes, contracts and rates across your entire company.
More time for your internal team to focus on full-time employees and core business functions.
What is a VMS?
A VMS, or Vendor Management System, is a software system that helps businesses facilitate the procurement and management of contingent workers and staffing agencies internally.
Operating as a cloud or internet-based system, a VMS solution ensures organizations are able to automate and centralize the processes around contingent workforce and staffing agency management - such as sourcing, onboarding, time entry, approval and payments.
The benefits of VMS software include:
The ability to monitor and track vendor performance with visibility into metrics such as time-to-fill, time-to-submit and workforce turnover.
The consolidation of all staffing vendors into one centralized platform.
Better documentation to ensure compliance.
Improved visibility and control over your contingent workforce program.
The automation of contingent workforce management processes, leading to greater efficiencies.
What’s the right option for your business?
When looking for a solution to better manage their contingent workforce program, most companies think that it’s a case of choosing between either a VMS or MSP solution. In fact, there are huge benefits of combining both VMS and MSP solutions.
MSPs and VMS solutions aren’t inherently different. They bring the same visibility, control and process improvements to your organization’s contingent workforce management program. The main difference is that a VMS is typically for internal management, while an MSP is the process of outsourcing your contingent workforce program to a third party.
While you can get great results with either one solution, combining the two, however, can help your business realize the additional benefits that come with a completely strategic contingent workforce management program.
In most cases, an MSP will help your business choose, implement and run the right VMS system based on your company’s own unique externally-sourced workforce requirements. They’ll then help you with the on-going management of your VMS to ensure that you are optimizing the results from both your MSP program and VMS software.