The staffing industry has changed dramatically over the past few years. As organizations utilize an increasing number of contingent workers, they also increasingly rely on a growing number of staffing agencies to fulfill job requisitions.
But managing contingent workers and staffing agencies isn’t easy. It requires a highly-strategic and company-wide program that ensures you have visibility and control over your contingent workforce program. When implemented successfully, a contingent workforce program will ensure your business is getting the best return on investment for the money you spend.
Unfortunately, most organizations don’t have the resources, time or expertise to implement a strategic contingent workforce program. The result is rogue spend, poor hiring decisions, fragmented processes and a complete lack of visibility that prevents program improvements.
For companies that don’t have the means or willpower to implement their own program, outsourcing the management of their contingent workforce to a managed service provider can help significantly.
Let’s take a look at what a managed service provider is in the staffing industry, and how partnering with one can help you realize dramatically improved contingent workforce results.
A managed services provider, also known as an MSP, in the staffing industry is an external organization that implements contingent workforce management solutions on behalf of a business.
An MSP combines repeatable processes, contingent workforce expertise and technology solutions to support an organization’s contingent workforce management program - helping them to gain visibility and control over contingent workers and better manage their staffing agencies.
There is a broad range of services that a managed service provider staffing can offer. MSPs can both help organizations to build a contingent workforce program from scratch, or drive continuous improvements within a mature program.
An MSP program can alleviate the pressures placed on your HR and procurement teams by managing your contingent workforce program, ensuring it is efficient, repeatable, cost-effective and accurate. An MSP typically customizes and implements a program that reflects your company’s specific needs.
Typical managed service provider services include:
If you manage your organization’s contingent workforce, then you’ll know just how complicated it can be. In fact, the last majority of companies have fragmented programs in place that lead to no standardization for how vendors are sourced and paid, rogue costs run rampant through the business, and the organization has absolutely no visibility or control over their contingent workforce as hiring managers engage vendors on their own terms and at their own rates.
This is all a side effect of having no company-wide, or strategic program in place. HR, procurement and hiring professionals are all left confused over how to engage, source and manage both contingent workers and staffing agencies.
Outsourcing these processes to an MSP, however, will ensure your organization is able to implement an effective and successful contingent workforce program that drives results.
Here are just a few of the key ways businesses benefit from a managed service provider staffing:
There are a variety of ways in which a managed service provider may charge your organizations. In most cases, MSPs are priced as either a percentage of contingent workforce spend or a price per transaction fee.
However, in some cases managed service providers may charge based on a fixed fee or even a performance-based pricing model in which the savings are shared.
Selecting the right managed service provider is crucial for the success of your contingent workforce program. This section will outline key considerations to keep in mind when choosing an MSP, such as:
Expertise and industry knowledge: Evaluate the MSP's experience and understanding of your industry to ensure they can effectively meet your unique requirements.
Technology capabilities: Assess the MSP's technology solutions, including what vendor management system they recommend, to ensure it aligns with your needs and supports efficient program management.
Scalability and flexibility: Consider the MSP's ability to scale their services as your business grows and adapt to changing workforce needs.
Service level agreements: Review the MSP's service level agreements (SLAs) to ensure they guarantee performance, responsiveness, and accountability.
Compliance and risk management: Verify that the managed service provider has robust compliance protocols in place to mitigate legal and regulatory risks associated with contingent workforce management.
Client references and testimonials: Seek feedback from existing clients or ask for testimonials to gauge the MSP's reputation and satisfaction levels.
To help readers maximize the value they derive from their partnership with an MSP, provide actionable best practices and tips. Some suggestions may include:
Establish strong communication channels: Foster open and frequent communication with your MSP to ensure alignment, address concerns, and share feedback.
Collaborate on program strategy: Work closely with your MSP to develop and refine a strategic contingent workforce program that aligns with your business goals and objectives.
Regularly review and optimize processes: Continuously assess and improve processes in collaboration with your MSP to drive efficiency, reduce costs, and enhance outcomes.
Leverage data and analytics: Utilize the reporting and analytics capabilities offered by your MSP to gain valuable insights and make data-driven decisions.
Foster a strong partnership: Treat your MSP as a strategic partner, fostering a relationship built on trust, collaboration, and shared goals for long-term success.
Are you interested in learning more about how a managed services provider can help you enhance the ROI of your contingent workforce management program? Get in touch with Contrax today.
