Regardless of what type of business you’re running, one of the key elements for success is, and will always be, your workforce.
Managing a workforce effectively is paramount – especially as a business continues to grow and evolve over time. Keep in mind that human resources and administration take time and effort. With that evolution, your human resource administration must also evolve with the right attention and effort applied. Without the increased effort, it can be difficult to scale efficiently and cost-effectively.
Thankfully, MSPs are one option to help handle a business’ administration of staffing concerns. But what is an MSP in staffing? What do they have to offer, and why are they worth considering? The answers to these questions are straightforward, but you have to keep a few key things in mind to determine whether this is the right move for you.
What is an MSP?
Also commonly referred to as a managed services provider, an MSP is a third-party organization utilized to more effectively manage a business process. Specific to contingent workforce programs, an MSP will increase your company’s day-to-day operations, allowing the entire process to flow effortlessly. An MSP can immediately enhance technologies associated with your contingent workforce program, support vendor management, increase reporting capabilities, and increase compliance. Contingent workforce is more critical than ever as organizations continue to evolve, and the implementation of an MSP can help ensure a company is successful in its growth.
The Advantages of an MSP in the Staffing Industry
A managed service provider in the staffing industry manages an outsourced contingent labor program for a business. An MSP brings with it an array of different benefits that cannot be ignored. Chief among these is the level of market expertise they bring with them.
For Example, if a business is entering into a new territory, they may not be familiar with the specifics they need to succeed. This is particularly common when a business enters a new country for the first time. There are unique labor laws, tax considerations, and compliance and licensing issues that a business needs to be aware of. It can be unrealistic to maintain this knowledge in-house, but with an MSP you can get instant access to people who already do.
Another major benefit that MSPs have to offer involves increased process efficiencies. Managing a contingent workforce can quickly become a full-time job when it comes to elements like human resources and administration. This can cause issues down the line, since organizational leadership already has a lot on their plate to focus on. An MSP can step in to streamline and centralize existing processes – providing full visibility of, and data around, these processes. This allows leaders the flexibility to focus on their business needs.
But for many organizations, the biggest advantage of an MSP has to do with the program scalability that they offer. With the right MSP and contingent workforce, businesses can ramp up and ramp down contingent labor resources as-needed. They become more agile than ever before, allowing them to enter new markets quickly and leave just as fast should the need arise.
Additional benefits of an MSP include but are not limited to:
- Technological expertise. An MSP will be well-versed in all the latest contingent workforce related IT tools and VMS technologies. An MSP brings expertise in the integration and implementation of these systems.
- An MSP can make sure that an organization’s handling of their workforce and other activities remains compliant, avoiding potential fines and other penalties down the road.
- Visibility into spending. Organizations will have more visibility into their spending in a way that uncovers their true return on investment in all areas. This in turn allows them to better understand where cost management opportunities lie.
How to Determine if Your Business Should Use an MSP
While many of the benefits of an MSP partner are hard to ignore, that doesn’t mean this is the right move to make for all types of businesses. Every organization is unique unto itself. After all – what works for one isn’t necessarily the best fit for another, and MSPs are absolutely a part of that idea.
Generally speaking, if you’re feeling like your own internal contingent workforce program isn’t effectively managing costs and doing what it can to eliminate risk, bringing in an MSP is likely the way to go. The same is true if you don’t already have a rigorous process in place for vetting and reviewing the people who are applying for available positions.
Without a type of vendor management system (VMS) that gives you a bird’s eye view of the enterprise, managing a contingent workforce can become overwhelming. If your business is struggling to handle compliance, spend policies, risk mitigation, or immigration tracking – an MSP can help you address all of these concerns and more. If your business resources are being impacted by the volume of your contingent workforce, turning to an MSP may be right for you.
What is the Cost and How is the MSP Fee Paid For?
The cost of a fully managed MSP can vary depending on the level of service, geography, and contingent workforce types the MSP is helping to manage for you. The cost and payment method will be negotiated prior to work starting.
In some scenarios, the Client will pay the full MSP fee for all services that are rendered (Client Funded). In other scenarios a portion of the MSP fee will be paid by the Client and a portion will be paid by the Vendor (Hybrid Funding). In a final scenario, Clients can choose to have an MSP fully funded by vendors (Vendor Funded) with a small % withheld on each vendor invoice.
Ultimately, it depends on which model works best for you and your program.
The Monument Consulting Approach
All told, an MSP in the world of staffing can act as an essential part to any organization. Not only are you tapping into a team of trusted professionals who can assist with everything from procurement to human resources and everything in between, but they also bring with them consistent and efficient processes that will stand the test of time.
At Monument Consulting, we tailor our approach to the unique needs of each client. Rather than insisting on some type of “one size fits all” process that doesn’t really exist, we take the time to learn about your business and its needs – all so that we can do whatever it takes to help you accomplish them in the most efficient way possible.
If you’d like to find out more information about what an MSP is within the context of staffing, or if you’re just eager to begin your own journey right away, please don’t delay – contact Monument Consulting today.