Managed Service Provider Staffing: What You Need to Know
3 min read
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.
What is a managed service provider in staffing?
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.
What services are typically offered by a managed service provider?
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:
Process design and implementation
On-going processes improvements
Oversee process of sourcing and engaging contingent workers
Review of current staffing agency contracts
Consolidation, management and payment of staffing agency invoices
Providing reporting and analytics that help improve your existing contingent workforce program
Vendor performance management
Issue resolution with agencies and day-to-day program management
Day-to-day management of Vendor Management System (VMS)
What are the benefits of an MSP in staffing?
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:
Access to technology (vendor management system) that centralizes and standardizes the management of staffing agencies and contingent workers.
Improved processes that are efficient, automated and repeatable.
Greater visibility and control over the contingent workforce, allowing for continuous improvement.
Faster and more cost-effective talent acquisition.
Access to contingent workforce expertise that improves program performance.
The implementation of compliant practices that mitigate the risk of co-employment or misclassification.
Spend visibility that ensures hiring managers aren’t overpaying for contingent workers.
Risk reduction due to more robust and consistent contracts
How much does a managed service provider cost?
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.
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.
Contrax has a contingent workforce management solution just for you