The Added Value of MSPs in Contingent Workforce Management
The Added Value of MSPs in Contingent Workforce Management
From streamlining contingent workforce processes and ensuring compliance to optimizing costs, the staffing managed service provider helps deliver continuous improvement for continued program success.
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What is an MSP in staffing?
A managed service provider (MSP) is a third-party service that helps businesses oversee their contingent workforce programs. By acting as an interface between businesses and their talent suppliers, MSPs facilitate end-to-end management of the entire contingent talent lifecycle. They provide businesses with a range of services, including:
- candidate sourcing
- recruiting
- interview scheduling
- onboarding
- contract management
- invoicing
- payroll management
- business intelligence
- rate standardization
- compliance regulation
How does an MSP work?
MSPs work primarily by unifying the external workforce ecosystem to give businesses complete visibility into their contingent workforce program. They can assume some or total responsibility over managing a business’s contingent workforce by providing human expertise to bolster the right processes. The expert MSP providers become their client’s dedicated talent advisors and consultants who evaluate the program’s needs, helping companies realize their hiring and overall business goals.
MSPs work best when they have access to powerful vendor management system (VMS) technology. The VMS can provide a central technology platform for staffing suppliers, MSP personnel, hiring managers, and candidates where they can interact and perform the day-to-day contingent workforce management activities.
What are the benefits of using an MSP?
Managed service providers benefit all stakeholders involved in contingent workforce management. They relieve hiring managers from manual, often labor-intensive operational responsibilities, help HR departments keep up with the evolving compliance standards, and provide procurement professionals with the opportunity to contain costs. And most importantly, they help businesses secure high-quality talent. Here are some key benefits:
- Streamline and eliminate redundant processes in contingent workforce management
- Increase productivity
- Reduce contingent labor hiring lifecycles and time-to-fill rates
- Enforce compliance with standardized terms and conditions across the supply base
- Drive cost-savings initiatives
- Maintain open, clear communication with suppliers, hiring managers, and candidates
- Improve overall candidate experience through transparent and open communication
- Engage and build talent pools and communities
- Evaluate supplier performance
- Provide direct-sourcing capabilities, including curation
- Oversee supplier management and supplier relationship activities
Should my business use an MSP?
MSPs can benefit both large and small contingent workforce programs. Modern MSPs do not use contingent program spend as a qualifying factor and deliver the same benefits to smaller clients as those with hundreds of millions in annual spend. They analyze your company, assess your contingent labor requirements, and make recommendations for a customized program.
So before you decide to self-manage your contingent workforce program, evaluate your current program and unmet hiring needs by asking the following questions:
- Are our contingent workforce management processes and procedures consistent?
- How well are we ensuring compliance?
- Are we facing risks from infrequent or non-existent auditing, rogue spend, non-standard agreements, misclassification, or co-employment risk?
- Are there missed savings opportunities from the lack of supplier diversity and competition, lack of invoice consolidation, and failure to keep abreast of industry best practices?
- Do our talent suppliers meet expectations in delivering high-quality talent?
- Are we able to obtain quality talent at competitive rates and without delay?
- Do we have communication gaps with our talent suppliers leading to inferior hiring outcomes?
- Can our business use benchmarking and market research data to make intelligent business decisions?
Your future-proof MSP
Technological, industrial, economic, and social disruption is at an all-time high, and businesses need to keep up with the change. To drive stability in this period of rapid evolution, modern MSPs like Prosperix help businesses become agile and resilient so they can navigate through these changes and thrive.
Prosperix Xponential provides businesses with the ability to:
Stay resilient
Grow exponentially and hire at scale across niches, skills, and geographies. Prosperix’s patent-pending VMS network allows you to ramp up hiring by connecting you to a vast network of suppliers and talent pools that are currently inaccessible through other platforms.
Scale up
Prosperix helps you achieve complete workforce visibility with real-time analytics that constantly monitors supplier, program, and candidate data so that you can be sure your contingent program has the exact workforce required to meet constantly-changing hiring needs.
By providing exponential capabilities, we help improve the journey of every stakeholder in the workforce ecosystem — businesses benefit from superior program performance, improved cost savings, and enhanced automation; talent suppliers benefit from democratized access to jobs on our platform, and candidates enjoy an extraordinary hiring and work experience.
Designed with agility, flexibility, and resilience in mind, Prosperix Xponential helps businesses solve contingent workforce management problems holistically while empowering them with the ability to meet hiring needs NOW and into the FUTURE.
Learn more about Prosperix Xponential and our exponential workforce design principles.
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