As companies look for ways to manage their contingent workforce more efficiently, many are turning to managed service providers (MSPs) to handle their contingent workforce programs.
In this blog, we'll explore the best practices for implementing an MSP contingent workforce program so that your business can ensure it partners with the best third-party provider possible to improve contingent workforce management ROI.
By following these best practices, your company can optimize its contingent workforce program, reduce costs and improve workforce quality to better help your organization achieve its business goals.
Understanding an MSPs Role in Contingent Workforce Management
A managed service provider is a company that manages and provides staffing services to businesses. MSPs specialize in the management of temporary and contingent workers - which consists of individuals who work on a contractual basis, rather than as permanent employees. They can be freelancers, consultants, or contract workers.
Implementing an MSP contingent workforce program can bring many benefits to a company, such as:
✔️ Cost savings: MSPs can negotiate rates and manage the contingent workforce, resulting in lower costs.
✔️ Compliance: MSPs can ensure compliance with labor laws and regulations.
✔️ Flexibility: MSPs can provide a flexible workforce to meet the changing demands of the business.
✔️ Increased productivity: MSPs can manage the contingent workforce, allowing the company to focus on its core business.
✔️ Improved quality: MSPs can provide access to a pool of qualified and experienced candidates.
Best Practices for MSP Contingent Workforce Implementation
1 - Define the Scope and Objectives of Your Contingent Workforce Program
Before implementing an MSP contingent workforce program, companies need to define the scope and objectives of the program. This includes identifying the business needs that the program will address, as well as determining the types of workers required. For example, a company may need contingent workers for short-term projects, or to address seasonal fluctuations in demand.
It is important to clearly define the scope and objectives of the program to ensure that it is aligned with the company's overall business goals. This will help to make sure that the program is effective and provides value to the company.
2 - Evaluate Potential MSP Partners
Once the scope and objectives of the program have been defined, companies need to evaluate MSPs based on their experience, track record, and ability to meet the company's needs. This includes assessing their technology, processes, and reporting capabilities.
When evaluating MSPs, it is important to consider their ability to provide quality candidates, manage the contingent workforce effectively, and ensure compliance with all relevant labor laws and regulations. Companies should also consider the MSP's experience in their industry and their reputation in the market.
3 - Understand Your MSP Agreement
After selecting an MSP, companies need to negotiate contracts that clearly define the services to be provided, the fees, and the terms of the contract. The contract should also outline the roles and responsibilities of both the company and the MSP, and establish a process for resolving any issues that may arise.
During contract negotiation, it is important to ensure that the contract is flexible enough to accommodate changing business needs, while also protecting the interests of both parties. This will help to ensure that the program is successful and provides value to the company over the long term.
4 - Program Implementation
Once the contract has been signed, the program can be implemented. This involves setting up processes for onboarding and offboarding contingent workers, as well as ensuring that the MSP has access to the necessary systems and tools.
During program implementation, it is important to ensure that all parties involved are aligned and that the program is being executed according to plan. This may involve regular communication between the company and the MSP, as well as ongoing monitoring of program performance.
5 - Work With Your Contingent Workforce MSP to Achieve Continuous Program Improvements
After the program has been implemented, it is important to strive for continual improvement. This includes monitoring program performance, managing relationships with the MSP and contingent workers, and ensuring compliance with all applicable laws and regulations.
Ongoing program management also involves regular communication between the company and the MSP to ensure that the program continues to meet the company's evolving needs. This may involve making adjustments to the program as needed, or identifying opportunities to further optimize the use of the contingent workforce.
Interested in learning more about implementing an MSP contingent workforce program? Get in touch with Contrax’ team of contingent workforce management experts today, and learn how we can help your business achieve improved contingent workforce ROI.
