What is a Managed Services Provider (MSP) Staffing Solution?
2 min read
Are you looking for a way to better manage your contingent workforce and the staffing agencies you use to source external workers? If so, you might be considering outsourcing this process to a MManaged Service Provider (MSP).
An MSP is an outsourced contingent workforce management solution that’s implemented by an external organization. Through industry expertise, process and technology, an MSP will design, build and implement a program that manages the entire talent life cycle (or any specific aspect you choose) of contingent workers - from acquisition to payment.
Operating as an external arm of your organization, an MSP manages all contingent workers - including gig, temporary/contract workers, freelancers, temp-to-hire and independent contractors - as well as taking on the role of vendor management of staffing agencies.
Why do companies use MSP staffing solutions?
The contingent workforce is growing exponentially in recent years, and there’s a few reasons why. Companies today need to be more agile than ever before, they need to be quicker and they need a new way to get around the staffing shortages affecting so many industries.
Yet while the contingent workforce offers businesses these benefits, it must be managed properly. A poorly managed contingent workforce will only lead to a complete lack of visibility into vendor performance, rogue spend and program inefficiencies.
That’s where a managed services provider comes in. An MSP alleviates the burden of contingent workforce management away from the actual business itself, implementing a strategic process that provides companies with complete visibility and control over their contingent workforce.
What services does a staffing MSP offer?
A managed services provider helps a business streamline and gain visibility and control over its contingent workforce by gaining insight into costs, improving program efficiencies and process, enhancing the staffing agency management process and ensuring compliance. MSPs also improve a company’s ability to hire top talent, quickly.
An MSP does this successfully through the combination of contingent workforce program expertise and technologies such as a Vendor Management System (VMS).
MSP program services typically include, vendor management, the process management of externally-sourced employees, building pools of high-quality contingent candidates, analysis on the performance of the program, and process creation.
Is a managed services provider right for your organization?
It can be difficult to know whether a managed services provider is right for your business. That’s because the vast majority of contingent spend is unaccounted for in the average business, and most companies don’t even know how many contingent workers are in their organization.
In fact, this is the reason you should be using a MSP. If you don’t have a solid contingent workforce program in place, it’s likely that your business is suffering from rogue costs and fragmented vendor practices that are impacting your bottom line.
Reasons to engage an MSP provider
You want to work with a highly-skilled, experienced and knowledgeable contingent workforce expert.
You want to access high-quality talent, faster.
You want to better control costs across hiring managers and staffing agencies.
You want to better document your contingent workers to ensure compliance.
You want access to insightful reporting that helps you improve the future performance of your contingent workforce program.
You want to centralize your entire contingent workforce program with standardized processes and rates.
Reasons not to engage an MSP provider
You do not want to outsource your contingent workforce management program to a third-party.
You haven’t sold the benefits of an MSP program to all of your stakeholders.
Your contingent workforce spend isn’t high enough to justify outsourcing.
Most MSPs require organizations to have a minimum amount of contingent worker spend. We have built a flexible vendor-neutral approach that allows our clients to choose the specific pieces of their externally-sourced workforce program that they want to be managed.
By providing as much flexibility as possible, we are able to offer managed service staffing solutions to organizations which are typically priced out of other MSP options.