Are you using contingent talent to build a flexible workforce, reduce costs and access quality talent? Then you’ll know just how important it is to implement an effective contingent workforce management program.
But managing a contingent workforce program isn’t easy. It requires category expertise, highly-strategic processes, the right resources and a program that the entire organization has bought into. Most companies simply don’t have the means to implement such a program.
Instead, many companies will turn to a third-party expert - known as a Managed Staffing Provider.
So, what is an MSP in staffing?
A Managed Service Provider, or MSP, is an outsourced third-party that uses strategic processes, contingent category expertise and technology to assume primary responsibility for a company's entire contingent workforce management program.
Used to meet a company’s contingent workforce requirements, an Managed Service Provider administers all processes associated with the sourcing and offboarding of temporary workers, independent contractors, freelancers, gig workers and permanent employees sourced through staffing agencies, as well as the ongoing management of those vendors.
An MSP takes on the responsibilities of processes such as requisition processing, program performance reporting, supply chain management, billing and approvals, onboarding, compliance and much more.
What are the benefits of working with an MSP?
Companies that hire contingent workers often don’t have the capabilities, resources, expertise and know-how to implement a strategic contingent workforce management program. This results in a lack of visibility and control that leads to rogue spend and low workforce quality.
Typically in this scenario, hiring managers source and acquire contingent workers on their own terms and through staffing agencies of their choice, leaving procurement and HR teams completely unaware of how many contingent workers the company hires and how much is being spent.
To address this, businesses partner with a Manage Service Provider to plan, build and implement a highly-strategic contingent workforce management program that improves the ROI they realize from their non-employee workforce.
An MSP brings market expertise, technology recommendations (in the form of vendor management systems), compliance best practices, and rigorous processes that enable them to build a highly-effective contingent workforce program for the business.
Organizations that work with an Managed Service Provider benefit from:
In addition, an MSP will also implement a Vendor Management System into the company’s contingent workforce program to centralize all data, giving them complete visibility into their non-employee workforce.
Is an MSP right for your business?
There’s no doubt that acquiring top talent is difficult right now. The contingent workforce offers a way to beat those challenges and access a range of benefits as well, including improved business flexibility, reduced workforce costs, greater agility and enhanced scalability.
To achieve those benefits, the implementation of a contingent workforce management program is crucial.
While large businesses and enterprise organizations might have the resources and expertise to design and implement their own programs in house, the large majority of organizations can benefit dramatically by working with an MSP that brings:
Are you interested in learning more about the benefits of a Managed Service Provider?
Get in touch with Contrax today. Let’s discuss how our innovative MSP programs can help your business gain improved ROI from its contingent workforce.
