In a recent blog, Why You Should Partner with a Contingent Workforce MSP, we discussed five reasons why organizations should consider partnering with an MSP to improve the ROI they receive from their contingent workforce program.
For businesses that don’t have the resources to effectively manage their contingent workforce in house, a Managed Services Provider (MSP) can help them gain complete control of their contingent workforce program - brining benefits such as:
If your business has decided that an MSP is the most effective way to manage its contingent workforce program, then you’re probably wondering how you decide which Managed Services Provider to partner with.
In this blog, we take a look at the top five things you should consider when choosing your contingent workforce MSP partner. We hope this article helps you find an MSP that brings true value to your contingent workforce program.
#1 Customizable programs that suit your workforce requirements
Traditionally, MSPs in the contingent workforce were designed specifically for large enterprise organizations with huge contingent workforce budgets. The more a business spent on their contingent workforce program, the more ROI an MSP could bring them.
If your organization only has small contingent workforce volumes, then you’ll want to look for an MSP that offers scalable services to clients with smaller contingent spend. Find a partner that has experience working in more spend-restrictive environments.
#2 VMS implementation
Often when looking for an MSP solution it will seem like Managed Services Providers and Vendor Management Systems are pitted against each other. You’ll stumble on blogs like ‘MSP Vs. VMS’ or ‘Should I Choose an MSP or VMS to Manage my Contingent Workforce’.
In reality, when you partner with an MSP they will always suggest a VMS for your business to implement - VMS software underpins the entire program. Make sure to work with an MSP who hears your company’s unique needs, and then suggests an VMS that works specifically for your processes. In most cases, the easier a Vendor Management System is to use the more effective it is for your team.
#3 Evaluate where the MSP is located and what size operation they run
An MSP’s location and physical footprint dictates how well they can support customers across multiple time zones and borders, so you’ll want to find out what facilities they have and what capabilities are available.
Some MSPs gain popularity because they are large, but that doesn’t necessarily make them right for your business. Remember, an MSP is an extension of your business so you want to work with someone that is transparent and easy to access.
#4 Depth of expertise
Depth of expertise refers to how well the MSP knows the contingent workforce and the specific requirements that your business is looking to fulfill. The better an MSP understands your market and unique needs, the more likely they are to help you achieve your workforce goals.
When talking to an MSP about a potential partnership, try to gain insight into how well they understand your requirements and what expertise they have had with similar clients before. This should include understanding of your job categories, their geographic footprint, the size of their vendor marketplace and the previous contingent workforce volumes that they have managed. An ideal MSP will have experience working, and succeeding, with similar clients to your business.
#5 Reporting is important
To ensure both your organization and MSP are working together to drive real, tangible results within your contingent workforce management program, it’s important that there’a a system in place to measure and report successes.
An MSP should be able to update your business on key performance indicators (KPIs), that show progress within your contingent workforce program - such as improved workforce quality or reduced spend. An MSP will likely report on standard KPIs, as well as custom KPIs that are specifically tailored to your unique business requirements.
Interested in learning more about how an MSP can help your business improve its contingent workforce management? Get in touch with Contrax today. We offer a range of services to help businesses better manage staffing agencies, reduce spend and improve workforce quality.
