The contingent workforce presents unique challenges for managers compared to traditional employees. In fact, most organizations don’t have the resources, technologies or expertise in place to manage this category of workers effectively.
To help, many organizations turn to a managed service provider (MSP) for assistance.
Managed services is the practice of outsourcing the responsibility for maintaining a range of processes and functions within a business. This helps organizations to improve their operations, access specialized experts and reduce their expenditures through the cost avoidance of directly-employed staff.
In this blog article, we take a look at what you need to know about working with a managed service provider to help manage all, or part, of your contingent workforce program.
How a managed service provider works for your contingent workforce
A managed service provider for the contingent workforce category is an organization that provides comprehensive support and management services for the entire source-to-pay process and management of the contingent workforce.
MSPs will typically take as much, or as little, responsibility away from your company’s contingent workforce program as you want them to. This can range from managing your entire contingent workforce program, to managing just one aspect that you are particularly struggling with.
The primary responsibilities typically include day-to-day execution/management of your contingent workforce strategy, vendor management of staffing agencies and overall consolidation of invoicing and payment to suppliers.
However, MSPs can complete a range of services on behalf of your contingent workforce program, including:
- Managing the lifecycle of an open job
- Screening contingent workers
- Oversight of time entry, approval and invoicing
- Negotiating contracts with staffing agencies
- Evaluating staffing agency performance
- Cost management
- Risk mitigation
- Implementing effective, and repeatable, processes
- Centralizing contingent workforce data
How a managed service provider can enhance your contingent workforce program
Partnering with a managed service provider enables organizations to streamline their contingent workforce management processes, reducing the time and effort required to source, onboard, and manage both contingent workers and staffing agencies.
A managed service provider will use their expertise and experience to put repeatable processes in place that ensure the successful management of the staffing agencies that you use to source contingent workers.
With an MSP handling all (or some) aspects of contingent workforce management, your team will have the time it needs to focus on core business activities.
Here are some of the top benefits of working with an MSP:
✔️ Cost effectiveness: The biggest cost savings from an MSP comes from better management of the contingent workforce program. MSPs can manage and monitor contingent workforce spend to ensure that there’s no rogue spend within your program and that staffing agencies aren’t overcharging. In addition, they can also negotiate lower rates with suppliers.
✔️ Strategic management: An MSP will put processes in place to ensure complete visibility and control over your company’s contingent workforce. This will include access to data on the number of contingent workers, how much they cost your business and staffing agency performance. Data will be used to optimize their workforce and make informed decisions that drive continual improvement such as quality of hire or vendor performance.
✔️ Improved compliance: To help your business de-risk, an MSP will ensure that all contingent workers comply with local, state and federal employment laws, and that the organization is protected against any legal liabilities associated with the hiring of contingent workers.
A managed service provider for the contingent workforce is a valuable resource for organizations looking to optimize their contingent workforce program to save money and improve the quality of their non-employee workforce.
An MSP can provide your business with cost savings, increased visibility and control and greatly enhance risk mitigation. By taking these responsibilities away from your internal team, your business can focus on its core competencies that drive growth.
Interested in learning more about how your contingent workforce program can benefit from a managed service provided? Book a meeting with Contrax today. We have a range of solutions to help you better manage your non-employee workforce.