More than ever, workforce agility and flexibility are key to your organization’s success in a highly dynamic business environment, but do you have a well-resourced contingent workforce capable of supporting your company’s ambitions? A managed services program (MSP) is an ideal way for employers to procure and administer flexible talent, but with various types of programs available, which one is right for you?
Traditional models typically focus on cost optimization, supply chain management and speed of fulfillment. In many instances, a service provider will distribute requisitions within the employer’s supply chain without considering which work arrangement is the most appropriate. While this is an effective solution for many organizations, the rise of the integrated MSP is enabling human capital buyers to capture even greater value from their contingent workforce.
By adopting a talent-first approach, this model is aimed at transforming both the procurement process and the quality of talent delivered. An integrated MSP is consultative in nature and highly customizable to each employer’s unique workforce needs.
While it creates more value for the practitioner, an integrated MSP is often misunderstood. How can such a program elevate the performance of your contingent workforce, while also simultaneously optimizing spend and access to talent?
Below are seven commonly asked questions and answers from Randstad Sourceright’s executive vice president of integrated MSP, Alp Perahya:
- What is an integrated MSP?
An integrated MSP delivers additional benefits beyond cost savings and efficiencies by focusing on continuously enhancing the quality of talent acquired. Through direct sourcing and dedicated virtual or onsite account management, an integrated program addresses workforce needs in a holistic approach that promotes talent engagement and productivity.
In addition to direct fulfillment, Randstad’s integrated MSP model leverages leading supply chain practices, configurable vendor management system (VMS) technologies and our proprietary talent analytics platform to deliver exceptional workforce insights and best-in-class practices.
- How can an integrated MSP drive value for my organization?
Through direct fulfillment and end-to-end management of your non-employee workforce – including temp and payrolled workers, independent contractors and statement of work (SOW) resources – an integrated MSP removes siloes from your talent strategies. Such an approach enables you to determine the best choice in labor types for meeting your resourcing needs. Deployment of screened and assessed talent is delivered “just in time,” so you always have rapid access to engaged and qualified workers. This results in optimized talent utilization, significant cost savings, faster hiring times and broader access to human capital.
- What are the tangible benefits of an integrated MSP vs. traditional MSP?
When measured against MSP benchmarks published by Staffing Industry Analysts, integrated MSPs administered by Randstad Sourceright achieve markedly better results, including:
– decreased time-to-fill by 11 days
– a client satisfaction rate that is nine times better than the industry average
– a 11% higher average talent satisfaction score
– a 36% average reduction in negative attrition
A faster time-to-fill and a reduction in attrition also correlates with higher productivity and a greater economic benefit for the employer.
- How does an integrated MSP achieve these benefits?
A critical component of an integrated MSP hinges on the consultative and hands-on nature of the program. On-site account managers advise hiring managers on how to identify the precise resources needed to fulfill work requirements, instead of requisitioning talent based on historical or pro forma practices.
The account manager is also a critical link to talent and develops close relationships with those placed directly or through specialty suppliers. Program managers also advise employers on governance and strategy to ensure the program is aligned to the most critical business imperatives.
- Is my organization large enough to justify an integrated program?
Employers often believe the size of their contingent workforce budget doesn’t justify an MSP, but they often fail to include various other non-permanent labor expenditures made by their organization.
A common mistake is not including IT services procurement, freelancers and independent contractors within the contingent spend analysis, which can easily total more than most organizations’ general staffing needs. An integrated MSP often includes IT statement of work (SOW) and independent contractor (IC) engagements within scope to optimize cost effectiveness and compliance.
- Do I need to give up my strategic suppliers?
While an integrated MSP puts the focus on 100% fulfillment of requisitions regardless of source, strategic suppliers are also recognized as being critical to effective and timely delivery of specialized talent.
Under an integrated program, key relationships are identified, retained and nurtured, while others are rationalized. This ensures that better access to specialty skills is always maintained. These key supplier relationships are also regularly evaluated on talent quality, adherence to program goals and targets, and asked to support initiatives around diversity and veteran hiring.
- How can an integrated MSP leverage data to enhance program success?
The collection and analysis of contingent workforce data are essential to optimizing talent utilization. By building a robust technology stack on an analytical platform, such as Randstad Sourceright’s proprietary TalentRadar platform, an integrated MSP is able to determine not only the right types of work arrangement needed for a project, but also the optimal rates and talent supply for a particular market and sector to ensure rapid fulfillment with high-quality talent. This results in lower rates and overall spend while increasing quality.
As organizations face greater challenges in an evolving world of work, the need for efficient, rapid and cost-effective access to high-quality talent is more urgent than ever before. Achieving business value through an optimized contingent workforce is one of the most expedient ways to gain this competitive advantage.
Transforming your talent strategy, however, requires significant investments in expertise, processes and technology. An integrated MSP can accelerate your path to workforce agility, all without the overhead and management distraction required to build such capabilities internally, not to mention absorbing the unseen underlying costs. Furthermore, you are assured of gaining leading best practices, a program tailored to your needs, on- and off-site support and a robust enabling technology stack.
Ready to take control of contingent workforce management for your organization? Take the next step, contact us today.
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