The benefits of MSP for contractor management
Could MSP be the flexible solution you’ve been searching for?
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.
What is a managed service programme?
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:
- Selection, recruitment and management
- Strategic workforce planning
- Reporting, monitoring and advising
- Legal compliance.
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.
What are the benefits of a managed service programme?
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.
Tip: try a contingent workforce solution calculator to see if an MSP could save your business money.
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.
Is an MSP right for you?
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.
How to choose an MSP provider
If you think an MSP could deliver value to your business, then your search for an MSP provider should look for the following:
- A proven track record of delivering successful MSPs for other businesses;
- A contingent workforce assessment to analyse your current processes;
- Access to qualified talent pools, industry knowledge and sector benchmarking;
- A user-friendly vendor management system that reports on the key metrics; and
- A partnership approach to resourcing transformation.
If you’d like to know more about managed service programmes and how Omni RMS can help, book in for a consultation today.