Businesses with smaller contingent workforce programs often leave the management of their contingent workforce to a person, or perhaps a small team, that wears many hats.
Typically, the management of contingent workforce will fall under the realm of either HR or procurement. However, here at Contrax we frequently find that businesses with smaller contingent workforce programs simply don’t have the resources, time or contingent expertise to implement an effective program.
While keeping contingent workforce management in house may seem like a good idea for people looking to save money, it’s not always the best idea.
In fact, when businesses don’t implement effective contingent workforce management programs they suffer from a lack of visibility and control that impacts the cost and success of their entire program.
The good news is that organizations (even those with smaller contingent workforce volumes) no longer need to go through the pain of trying to manage their contingent workforce management program themselves.
They can get all the help they need from a Managed Services Provider (MSP).
Firstly, what is an MSP contingent workforce program?
In general, managed services is the practice of outsourcing the responsibility for maintaining, and anticipating need for, a range of business processes and functions that improve the operations and ROI of an organization.
The aim of an MSP is to lower costs, while at the same time bringing more value to a specific business process.
When it comes to the contingent workforce, a Managed Services Provider is an outsourced partner that manages either all, or part, of a business's contingent workforce management program.
Typically, a contingent workforce management MSP will take on the responsibility of managing a company’s entire contingent workforce management program. This will include everything from building the overall workforce strategy and sourcing staffing agencies, to onboarding contingent workers and billing.
When businesses work with an MSP to implement an effective contingent workforce management program, they will realize benefits such as:
MSPs aren’t just for enterprise companies with large contingent workforce volumes - they can benefit all businesses!
Traditionally, MSPs were designed for large enterprise companies with vast amounts of contingent spend. The higher the spend, the more an MSP could save a business and the more ROI they brought to them.
But MSPs are no longer just for companies with high contingent workforce spend.
In fact, an article from Staffing Industry Analysts states: “In the past, many companies worried that annualized spend of less than $20 million did not warrant - or could not sustain - a full MSP [or] VMS solution. To some extent, that was true, and so these companies managed their programs in-house through their procurement and/or human resource teams.
“Today, innovative MSP/VMS service providers are able to deliver the benefits offered through these programs within more spend-restricted environments. This is accomplished in a number of ways, including shared program management staff and scaled technology platform.”
The evolution of MSPs means they’ve evolved their services to be scalable to organizations with smaller contingent workforce volume. Contingent workforce Managed Services Providers can now offer the same benefits to companies with less than $10m contingent workforce spend, as they can to a business with more than $20m.
So, what are you waiting for! Get in touch with Contrax today to find out how our innovative MSP service can help improve your workforce quality and save you money - no matter how small or large your contingent workforce volume is.
Book a meeting with our team today to find out more.
