Over the next five years, contingent workers are expected to make up 60% of the average workforce. Yet, many businesses are struggling to efficiently and cost-effectively manage their existing levels of non-permanent workers. As restrictions, budgets and competition for talent tighten in readiness for the new year, we’re taking a look at the benefits of MSPs and whether your business is ready for one.
A managed service programme (MSP) is a contingent workforce solution, where a resource management company assumes end-to-end responsibility for your temporary, contract and non-permanent workforce.
These responsibilities typically include:
An MSP differs from recruitment process outsourcing (RPO) because it focuses on your non-permanent workforce only. However, both can be used together to create an efficient and highly effective resourcing model.
Aside from taking a significant amount of work and hassle off of your hands, there are many other strategic benefits of using a managed service programme. These include:
MSP providers are experienced at finding, engaging and hiring the best talent for the job. Established MSP providers have access to large contingent talent pools that you may struggle to infiltrate yourself, and have experience in initiating conversations and building interest in a variety of positions.
Being able to scale your workforce up in response to demand, and back when things go quiet is one of the main advantages of a contingent workforce. An MSP helps you to operate at maximum performance and profit by giving you immediate access to the top temporary talent.
The experience of an MSP provider extends to engaging a contingent workforce in the most cost-effective way possible. This includes reducing the time to hire, understanding and negotiating market rates, standardising rates and fees, and using data to identify areas for cost savings and increased efficiencies.
There are many regulations to comply with when engaging a contingent workforce – the latest being the updated IR35 regulations. An MSP provider assumes all responsibility for reducing your risks and ensuring compliance, helping you to avoid liability.
And last but certainly not least, visibility. By having someone experienced with sole responsibility of your non-permanent workforce, you gain better visibility and control, with access to important metrics. For example, by using a vendor management system, you can better understand what skills you are paying for, and this information can help to inform future workforce, succession and talent planning.
Together, these benefits can help HR teams to focus their time and attention on other tasks that generate greater business value.
Many businesses question whether they’re ready or big enough for an MSP. However, as you can see, the benefits of MSPs apply to any business engaging a contingent workforce.
In particular, if you’re struggling to proactively manage your non-permanent workforce, drive cost savings, deliver metrics, respond to business demands or mitigate risk, then an MSP can undoubtedly help.
If you think an MSP could deliver value to your business, then your search for an MSP provider should look for the following:
If you’d like to know more about managed service programmes and how Omni RMS can help, book in for a consultation today.
RPO, or Recruitment Process Outsourcing, is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider.
In traditional hiring, organisations typically manage recruitment processes in-house, from sourcing candidates to onboarding. This often requires significant time, resources, and expertise from internal HR teams or hiring managers. However, traditional hiring methods can sometimes struggle to keep pace with changing talent demands, especially in industries facing skill shortages or rapid growth.
RPO offers a holistic and strategic approach to talent acquisition. RPO providers like Omni act as an extension of an organisations brand, assuming responsibility for recruitment activities such as candidate attraction, sourcing, screening, assessment, and even onboarding. By outsourcing these functions to specialised experts, organisations can benefit from industry knowledge, resources, and technology to give access to the best talent at pace.
One of the key differences between RPO and traditional hiring lies in the level of specialisation and scalability offered by recruitment RPO providers. RPO partners often have dedicated teams of recruiters who specialise in specific industries or skill sets, allowing them to access niche talent pools and identify high-quality candidates more efficiently. Additionally, RPO solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs, whether it’s scaling up recruitment efforts during peak periods or adjusting to changing market conditions.
Recruitment Process Outsourcing (RPO) can significantly enhance your Talent Acquisition strategy by providing specialised expertise, scalability, and strategic partnership. Here’s how:
Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. These experts possess in-depth knowledge of the labour market, industry trends, and sourcing techniques, allowing them to identify and attract high-quality candidates efficiently. By leveraging their specialised expertise, RPO partners, like Omni, can access niche talent pools and ensure high-quality people for your organisation.
Scalability: One of the key advantages of recruitment RPO is its scalability. RPO providers can quickly scale recruitment efforts up or down based on your organisation’s hiring needs. Whether you’re experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can adapt to accommodate your changing requirements. This flexibility ensures that you have the right resources in place to meet demand without overburdening your internal HR team or sacrificing recruitment quality.
Cost-Effectiveness: RPO recruitment can offer cost savings when compared to traditional hiring methods. While there may be an initial investment in outsourcing recruitment to an RPO partner, the long-term benefits often outweigh the costs. RPO can help reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for your organisation.
Strategic Partnership: RPO goes beyond transactional recruiting by forging a strategic partnership between the RPO partner, like Omni, and your organisation. At Omni, we become an extension of your employer brand and we work closely to understand business objectives, culture, and talent requirements. This collaborative approach allows RPOs to tailor recruitment strategies that align with your organisation’s goals. By working as an extension of your HR team, RPO providers can provide valuable insights, leading practices, and innovative solutions to help achieve talent acquisition objectives.
Recruitment Process Outsourcing (RPO) is a strategic approach to talent acquisition where organisations outsource some or all of their recruitment processes to an external provider, like Omni. The partner is known as the RPO provider and assumes responsibility for various aspects of the recruitment process, including candidate attraction, candidate sourcing, screening, assessments, interview coordination and onboarding.
Recruitment RPO is about leveraging specialised expertise, technology, and resources to streamline the recruitment process and improve hiring outcomes. Rather than relying solely on internal HR teams or traditional recruitment agencies, organisations partner with RPO providers to access a broader range of talent to enhance efficiency and drive better results.
The specific services offered by RPO providers can vary depending on the needs and preferences of the organisation. That’s the beauty of RPO. Some organisations may opt for end-to-end RPO, where the RPO provider manages the entire recruitment process from start to finish. Others may choose to outsource specific elements of the recruitment process, such as candidate sourcing or interview scheduling, while retaining other aspects.
There are several key advantages:
Access to Specialised Expertise: RPO providers have dedicated teams of recruiters who specialise in various industries, roles, and skill sets. This expertise allows them to identify and attract high-calibre talent more efficiently than internal HR teams or traditional recruitment agencies.
Scalability: RPO recruitment solutions are highly scalable, meaning they can quickly adapt to fluctuating hiring needs. Whether your organisation is experiencing rapid growth, seasonal fluctuations, or project-based hiring spikes, RPO can flexibly adjust to accommodate your changing requirements.
Cost Savings: RPO can offer cost savings compared to traditional hiring methods. By outsourcing recruitment processes to an external provider, organisations can reduce time-to-fill, cost-per-hire, and turnover rates, resulting in overall cost savings for the business.
Strategic Partnership: RPO recruitment goes beyond transactional recruiting by fostering a strategic partnership between the RPO provider and the organisation. At Omni, we work closely with our organisations to understand their organisation’s objectives, culture, and talent requirements, allowing us to tailor recruitment strategies that align with the organisation’s goals and values.
