overcome the unexpected.
be ready for any contingency with flexible talent.
Being prepared for any contingency is a competency every organization must have to survive in today’s exceptionally challenging times. Never before have businesses experienced such headwinds churning across the global economy, and human capital leaders are being called on to provide leadership that will empower their workforce to respond accordingly.
And for all the contingencies that may come their way, forward-thinking talent leaders will consider more flexible talent in their recovery efforts, according to Staffing Industry Analysts. Facing a global economic crisis sure to linger for some time, many executives are adopting this approach as a way to accelerate recovery and growth. Has your business considered how contingent staffing strategies can help you pivot in the months ahead?
If so, you are also aware of the challenges associated with contingent talent — from compliance requirements to workforce visibility to spend management. There is no question that with more contingent talent utilization, complexity rises, and more of your time is needed to effectively manage temporary staffing, statement of work (SOW) engagements, payrolled talent, independent workers and freelancers.
Are you prepared, then, to make significant investments in time, expertise and spend to accommodate the growth of your contingent workforce?
There is a better alternative to making significant internal investments: an externally provided managed services program (MSP). A customized MSP can help you gather all of the resources needed to operate effectively and efficiently, freeing you to focus on developing the right talent strategies aligned with your business. More importantly, having an external managed services provider delivers the agility and flexibility your company must have to achieve growth and greater market share.
Want to learn how an MSP can prepare your organization for the business challenges ahead? This MSP playbook will show you how you can benefit from managed staffing services, how to build your business case, and what steps can help you implement a successful talent model. Read on to learn more.
Does your contingent workforce management strategy need improvement?
- Does our company often face delays in acquiring important temporary skills needed to drive business deliverables?
- Are we able to determine the number of flex workers in our organization at any given time?
- Is there visibility of contingent staffing spend throughout the entire workforce?
- Are there mitigation measures in place to ensure independent contractor compliance?
- Are our management systems capable of delivering robust analytical insights?
how MSP works.
An MSP may cover the entire life cycle of all or a portion of an organization’s contingent workforce program, including supply chain management, contingent talent attraction, onboarding, timekeeping and invoicing, and contract termination and offboarding. This comprehensive approach enables the service provider and client to monitor all aspects of engaging flexible labor. Under an MSP, the service provider may provide some or all of the following:
- review and make recommendations on contingent workforce strategy
- enhance quality of flexible talent acquired
- leverage technology to drive automation and efficiency
- deliver analytics tools and services for greater business insights
- develop and enhance workflows
- develop and nurture talent pools
- support talent marketing across all worker types
- direct sourcing and fulfillment of requisitions
- review and optimize the supply chain
- negotiate discounted rates with suppliers
- provide day-to-day administration and operational management
- drive continuous process and business improvements
- manage statement of work contractors and services procurement workflow
By leveraging a better process, innovative technology and subject matter expertise of the service provider, MSP buyers readily ensure a consistent and transparent contingent talent acquisition process. Companies can better focus on attracting the best talent rather than on tactical tasks, with the MSP helping to directly fulfill requisitions, create analytics insights and manage the supply chain, among other important functions.
Employers also can turn to MSPs to mitigate risks and assure compliance with all applicable regulations. For instance, an MSP can help ensure flexible workers are not misclassified as contractors if they actually qualify as employees. Inaccurately determining employment status can lead to regulatory fines, back taxes and brand issues.
The MSP models
MSP programs typically fall into one of three categories: master vendor, vendor neutral and hybrid. Over the past few years, however, unique models have emerged as part of an integrated talent solution. One key driver of the trend is direct fulfillment, which allows employers to engage talent through a human cloud, its own contingent talent pool or a recruitment function within the MSP.
In a vendor-neutral MSP, all suppliers are given an equal opportunity to fill a role. In a master vendor program, the master vendor is given preference to first fill a position and must release it to the other suppliers if it can’t do so within a specified time limit. A hybrid model contains elements of both.
What does an MSP cost?
A significant benefit of managed services is the cost advantage. Typically, MSP and vendor management system (VMS) providers charge a management fee, but some programs are paid by the suppliers in the form of a transaction fee. Managed service providers typically establish rate cards at the time of implementation to ensure suppliers don’t pass their fees back to the client. The transaction fees alone may more than offset the management fees, but the client may also choose to pay for part or all of the fees.