#1. Generating an All-Around Savings
Businesses from every industry strategize how to earn the greatest return on any investment. One of the greatest benefits of MSP programs is their ability to generate all-around savings.
Many businesses contemplate the value of employing full-time employees to run their contingent workforce operations. With the costs of onboarding, training, and sustaining multiple salaries with benefits, the capital involved may not justify the investment.
However, when your business partners with an MSP, you are assigned a dedicated team of contingent workforce management experts who are credentialed to help your company in multiple avenues. Therefore, for the cost of hiring one, two, or several in-house contingent workforce managers, you could generate a higher ROI and pay less for a team of outsourced MSPs.
#2. Boosting Program Visibility
One challenging component of managing contingent workforces is generating a clear viewpoint into enterprise spending, especially when you have a substantial amount of contingent labor. As a result, your business can quickly lose sight of key metrics associated with this significant part of your organization’s workforce.
However, another benefit of partnering with outsourced Managed Service Providers is gaining clarity on all important metrics and data including but not limited to:
Level of spending
The time-to-fulfill requests
Overall placement quality
To assist in program visibility, MSPs oftentimes leverage vendor management systems (VMS) to serve as the single system of record for end-to-end program tracking. This significant amount of data can now be turned into meaningful reports that help reveal trends and assist in overall workforce decisions.
#3. Enhancing Supplier Management
In addition to all-around savings and boosting your overall program visibility, an additional benefit of MSP programs is the ability to enhance supplier management. An MSP effectively alleviates the burden of supplier contract management by creating an additional layer of contractual distance between your company and contingent workers.
When partnering with a reputable MSP , your organization gains instant access to a directory of highly qualified contingent workforce service providers without the process of vetting and contracting them. This frees more time for you to strategize on generating growth and stability for the company while also minimizing exposure to rogue supplier agreements.
#4. Creating A Streamlined Process
Not only do MSPs enhance supplier management, but they also facilitate greater agility within your entire organization. They work to build intelligent workflows that minimize inefficiencies when dealing with the wide range of tasks associated with the contingent workforce. These tasks involve vendor management, candidate sourcing, candidate onboarding, time entry/approvals, and program-wide invoicing.
It becomes obvious why 75% of Fortune 500 companies have formal contingent workforce programs. Outsourcing programs to an MSP will help ensure that businesses attract the right talent, at the right time using best practices developed by industry experts.
#5. Monitoring Compliance Assurance and Risk Protection
Although crucial to the successful operation of both businesses and contingent workforces, some companies fail to monitor their compliance with state and federal classifications and other relevant human capital mandates. As alternative work arrangements become more common across nearly all industries, businesses now face increased risk and liability in areas regarding employment classification, payroll provider compliance, and taxation. Failure to classify properly can result in fines and back taxes.
MSPs benefit businesses with their external expertise on compliance, best practices, and insights on local, regional, and global regulations and best practices. Not only can they support classification efforts, but they also help with taxation management, data privacy initiatives, and vetting continent workers.
Monument Consulting: A Highly Rated MSP
At Monument Consulting, we understand the importance of managing your contingent workforce in the most optimized and efficient manner. Therefore, our team uses the industry’s leading vendor management systems to streamline our managed service provider programs. Additionally, we offer contingent workforce management consulting services to share our expertise with your staff on how to operate your contingent workforce at maximum efficiency.
Are you looking to connect with Monument Consulting? Contact us today to ask about our contingent workforce consulting or managed service provider (MSP) services!