be more agile with an MSP
With digitalization and globalization continuing to drive business strategies, like many of your peers, you are likely challenged with finding the skills needed to complete your company’s transformation. For many organizations, the solution is increasingly clear. Contingent talent can help you address key workforce gaps, support company goals and drive innovation. As a result, companies that adopt this approach are becoming more agile and effective. It’s no surprise that Staffing Industry Analysts (SIA) predicts the use of contingent labor among U.S. employers will grow from 22% to 29% by 2026.
But even as organizations grow their flexible workforces to become more agile, there is a cost to this approach: increased complexity. Employing a talent population that includes diverse work arrangements requires more resources and attention to considerations such as compliance, cost tracking and supplier management. In fact, SIA research shows that the percentage of time contingent workforce managers spend on contingent talent responsibilities has increased from 16% in 2004 to 74% in 2017. As a talent leader, you probably know firsthand how demand for your time has risen over the last few years.
To reduce this burden, a growing number of organizations are adopting managed services programs (MSP), where an external service provider handles the management and administration of a company’s contingent workforce. Although cost efficiency is often one of the first reasons that companies consider an MSP solution, those that implement this talent model realize many other benefits that drastically improve contingent workforce planning overall.
For example, MSPs add visibility to the contingent workforce program, mitigate risks associated with regulatory and internal compliance, provide greater access to talent and enhance supply chain performance. All of these benefits contribute toward a common goal: helping employers deploy the right talent at the right time. Let’s take a closer look at the ways in which an MSP can help your company become more agile.
1. enhanced program visibility.
One of the biggest challenges with managing a contingent workforce is getting a clear line of sight into spend across the enterprise. This affects a company’s ability to measure program performance accurately.
With an MSP in place, companies benefit from having clarity on important metrics such as level of spend, time to fill, quality of placement (through turnover data and manager satisfaction surveys), program participation and more.
2. compliance and risk mitigation.
As alternative work arrangements become more common, businesses face increased risk and liability. With an MSP talent model, companies benefit from external expertise on compliance best practices, and insights on local, regional and global regulations and processes that tightly adhere to important mandates.
For instance, one of the most important contingent workforce related considerations is employment classification. Failure to classify properly can result in fines and back taxes. Not only can your MSP partner support classification efforts, but they also help with taxation management, data privacy initiatives and vetting suppliers and workers.
3. access to top talent.
Randstad Sourceright’s 2018 Talent Trends research finds that 62% of human capital and C-suite leaders say getting the skills they need is one of their top concerns. MSPs can address this issue by optimizing the supply chain and ensuring access to a variety of skills.
Through supplier rationalization, MSPs can also help you build more strategic relationships with vendors to ensure a higher quality of talent.
4. supply chain efficiency.
Many companies struggle with their talent supply chain. Some have dozens, if not hundreds, of suppliers throughout the organization, making management especially difficult. Ensuring all suppliers adhere to policy and processes can be a logistical nightmare, especially as so many are administered individually by hiring managers.
Vetting and negotiating terms, standardizing rate cards, processing payments and other functions all require tremendous effort as well. An MSP talent model uses proven processes and technologies to create a more efficient, transparent and accountable supply chain.
5. talent branding expertise.
Employer branding strategies have long been considered essential for attracting permanent hires; however, as companies and talent turn to flexible work arrangements, a holistic employee value proposition (EVP) that also accounts for the contingent workforce is critical.
Your MSP partner can work with you — and suppliers — to develop a highly configurable strategy that maintains consistency with your overall brand framework, while targeting and attracting highly skilled contingent talent to your organization.
6. predictive analytics & data management.
Workforce data and business insights are now more important to organizations than ever before, yet many lack the technological infrastructure or subject matter expertise to leverage this information. The evolution of MSP has led service providers to invest in more sophisticated predictive analytics and easy-to-use reporting dashboards.
This gives you the ability to identify issues occurring around skill needs, spend habits, supplier performance, fulfillment efficiency and other important metrics. Some talent analytics platforms can also help your hiring managers make decisions on which types of talent are best for their needs, based on historical analysis of availability of skills.
7. improved flexibility and scalability.
In today’s dynamic business landscape, companies must respond quickly to changing market conditions; a highly flexible workforce can help you do this. Because MSPs work with an extensive supplier base, your provider can find alternative sources of skills when your existing supply chain is unable to deliver.
Your program can also be scaled up or down quickly when business needs change, or replicated at a different location or market to provide a consistent experience for hiring managers throughout the organization.
8. innovative technologies and practices.
Because MSP providers constantly invest in their delivery infrastructure, as a client, you benefit from the newest tools and process refinements. For example, you can get access to emerging HR technologies, such as human cloud platforms, also known as freelancer management systems (FMS), that help companies easily engage with independent talent.
You can also benefit from collaborative customer review sessions where you work closely with your MSP partner and suppliers to ensure access to the best talent. Some partners also provide access to management portals that facilitate communications and processes among all parties.
the many advantages of MSP.
Companies often turn to an MSP talent model based on a specific pain point, but as programs mature, many have discovered that MSP programs can enhance and often transform other areas in their contingent workforce programs, resulting in better delivery and utilization of talent to create a competitive business advantage.
Get additional insights on how an MSP talent model can transform contingent workforce management. Access our MSP Playbook for practical case studies and tips on how to select a talent model and provider, change management, and program evolution.
read the complete MSP series:
- #1 making the business case of MSP
- #2 eight benefits of MSP beyond cost savings (you are here)
- #3 change management strategy that drives success
- #4 how to work with your MSP provider to get the best results
- #5 are you ready to expand your managed services program?