As the modern business landscape becomes more competitive, companies are looking for ways to stay ahead of the curve. One effective strategy is to utilize a contingent workforce made up of skilled and flexible non-employee workers.
Yet there are persistent challenges when it comes to contingent workforce management, with the vast majority of businesses failing to gain the visibility and control they need to implement standardized processes that mitigate risk, reduce spend and improve talent acquisition.
A primary solution to address the challenges associated with contingent workforce management is the implementation of a contingent workforce Managed Service Provider (MSP) program.
In this blog, we’re going to explore what exactly a Managed Service Provider Program is and how working with a staffing MSP can help your business achieve improved contingent workforce ROI.
What is a Staffing MSP?
An MSP is an outsourced third-party that manages a company's contingent workforce on their behalf. The MSP uses strategic processes, contingent category expertise and technology to assume primary responsibility for the company’s contingent workforce management program.
Staffing MSPs operate on behalf of the business to administer all processes associated with the sourcing and offboarding of temporary workers (including requisition processing, program performance reporting, supply chain management, billing and approvals and onboarding), as well as managing staffing agency relationships.
Want to learn more about the role of an MSP in contingent workforce management in more detail? Read our blog, What is an MSP in Staffing?
Key Benefits of Working With a Staffing MSP
1 - Get a Tailored Contingent Workforce Program Designed Just For You
Every organization has unique business requirements and goals. An MSP should align with your needs, goals and business culture. The right partner will implement a contingent workforce management solution that is uniquely designed to ensure that your non-employee workforce enables you to achieve your overarching business goals. This could be anything from a robust program that is highly-strategic, to something more simple that focuses on the processes that you can’t handle in house.
2 - Reduced Administrative Burden
Managing a contingent workforce can be a time-consuming and complicated process. Working with a staffing MSP will help reduce the administrative burden on your HR and Procurement teams. Managed Service Providers handle all administrative tasks associated with managing a contingent workforce, including hiring, onboarding, and payment. This frees up time for your internal teams to focus on core revenue-driving tasks.
3 - Cost Savings
By helping your organization gain complete control and visibility of your contingent workforce program, an MSP partner can help your business save money and mitigate excess spend. An MSP will analyze and evaluate the performance of your program, ensuring hiring managers are paying standardized rates, that your business isn't overpaying for non-employee talent, and mitigating the risk of rogue spend throughout your business.
4 - Gain Access to Contingent Category Expertise
Managing a contingent workforce is highly-specialized, requiring category expertise and the appropriate resources. Most organizations do not have the resources in house to implement a highly-strategic contingent workforce program. An MSP will provide the resources and expertise that your business is lacking, at a fraction of the price that it would cost to hire them in house.
5 - Improved Compliance
Staffing MSPs are experts in labor laws and regulations. Managed Service Providers implement protocols, procedures and repeatable processes into your organization's contingent workforce program, ensuring that your business stays compliant with relevant laws. This can help companies avoid costly fines and legal issues, reducing risk and increasing peace of mind.
6 - Technology Expertise
MSPs have a huge amount of experience when it comes to contingent workforce management technology. A Managed Service Provider will help you to implement a seamless Vendor Management Solution into your contingent workforce program, as well as help your business to integrate it with the relevant technologies used for your HR and Procurement processes.
7 - Seamless Contingent Workforce Program Scalability
Finally, working with a staffing MSP can provide your business with increased flexibility. MSPs can help companies quickly scale their workforce up or down based on their needs. This can be particularly valuable for companies that experience fluctuations in demand or need to respond quickly to changing market conditions.
Interested in learning more about how a Managed Service Provider can help you achieve improved contingent workforce ROI? Get in touch with the Contrax team of contingent workforce management experts today.
