| 3 min read |
Buyers of managed services programs (MSP) are familiar with the foundational benefits, including cost savings, greater contingent workforce visibility and enhanced access to quality talent. But, rationalizing the talent supply chain can help improve performance further. When a national leader in property and casualty insurance partnered with Randstad Sourceright to better manage its flexible talent, the company realized the profound impact an MSP can have on its supply chain strategy.
As part of the longstanding MSP’s continuous enhancement efforts, the company is focused on acquiring the best flexible talent for its business needs. By more effectively grading and managing suppliers through the use of highly robust program data, the insurance giant is able to significantly strengthen the relationship with strategic suppliers and improve the experience for both candidates and hiring managers. The results are faster access to talent and highly satisfied stakeholders all around.
a more effective talent supplier base
Through both standardized and in-depth grading of talent suppliers, the company used data to reduce its supplier base by more than 50%. The results are stronger relationships with those vendors and better talent outcomes.
improved candidate quality
Staffing metrics point to the delivery of higher-quality candidates. Suppliers consistently meet or exceed targets for candidates being selected for interviews (35%), hired (25%) and onboarded (15 days).
greater hiring manager buy-in and satisfaction
Hiring manager satisfaction with the program is at 95%. Satisfaction from talent suppliers has risen to 100% in just two years.
reining in rogue spend
Because the MSP is delivering quality talent more quickly, hiring managers are motivated to get the contingent talent they need through the MSP. This improves overall talent spend.
“Optimizing the supply base lets us focus more on the user experience. Jobs are getting filled faster. The manager feedback is improving. Randstad Sourceright is always analyzing the data and looking for ways to keep improving the program.” — contingent labor and services procurement leader
As an insurance provider that protects millions of consumers, the company requires a highly agile workforce when the business demands resources quickly. That means providing claims adjusters, customer service specialists and other talent when a natural disaster or other event affects a large number of customers. Moreover, the company’s large footprint means it needs to have resources to respond anywhere in the country.
Although the company has had an MSP in place for several years, three years ago, procurement leaders identified an opportunity to enhance supply chain strategy as part of the program’s continuous improvement efforts. Taking the steps to hold suppliers accountable to performance standards and develop strong relationships, the company’s contingent talent leaders have elevated the user experience for all stakeholders — including suppliers, hiring managers and contingent talent.
Working with Randstad Sourceright, the insurance leader implemented a rating system that includes a systematic approach to monitoring and grading all suppliers. This strategy adds greater governance over the supplier base and helps procurement leaders make data-based decisions. With a goal of rationalizing the supplier base, the rating system and supplier rationalization helps the company consistently experience better value and performance.
Suppliers are made accountable for their performance. The system grades them on their ability to provide high-quality job candidates who can qualify for an interview and then be considered for hiring (i.e., submit-to-interview and interview-to-fill performance indicators). The new rating system also provides valuable insights on which suppliers deliver the best value, consistent performance and capability to deliver different skill sets. Clear guidelines inform the ongoing governance of the talent supplier system, helping to build greater trust in the supplier network by providing user performance data.
Insights about supplier performance also help improve MSP adoption among the hiring managers, who are motivated to access talent quickly using top tier suppliers, thereby reducing rogue spend. With greater optimization and transparency of the contingent staffing process, requisitions are better matched to the right talent suppliers, resulting in better candidates presented to the hiring manager.
Through the supplier strategy, the number of vendors was consolidated, which streamlined management of the contingent workforce. Hiring managers have greater confidence in the program because they know only top-performing suppliers will be filling their requisitions. Spend is also more controlled and standardized. For suppliers, hiring managers and contingent talent, the transformation has vastly improved their experience.
”The secret sauce to success is making sure you’re closely aligned to your MSP … making sure you have touch points. We discuss strategy with our Randstad Sourceright team on an ongoing basis — once a week, if not multiple times.” — contingent labor and services procurement leader
learn how to create an effective supplier management strategy
Check out our recent Q&A with MSP expert Twan Peters for additional insights on how to measure supplier performance, rationalize the supply chain and optimize your managed services program. Read "Q&A creating an effective supplier management strategy" now.