Greensboro Staffing Consultants’ MSP solutions encompass a variety of managed service models to meet each of our clients’ workforce management needs.
Vendor Neutral MSP
In a Vendor Neutral MSP model, requisitions are released to all participating suppliers simultaneously, allowing them an equal opportunity to fill requisitions. If the MSP provider has a staffing division, it may also participate in the delivery of talent, but must adhere to same requisition guidelines as the other suppliers in the program.
Master Vendor MSP
In this scenario, the MSP is responsible for the management of the program and their staffing division has first right to fill a requisition prior to distributing the requisition to rest of the suppliers in the program. The Master Vendor supplier will have a specific time limit to fill a requisition before it is released to rest of the supplier base.
A Hybrid MSP includes elements of multiple sourcing models (e.g. vendor neutral and master vendor) based upon varied client needs. The various sourcing models are organized and delivered to the client by Hybrid MSP provider. Most MSPs are hybrid in nature to ensure that all client talent and program management requirements are met.
Vendor Management System (VMS)
A vendor management system is typically used in conjunction with the models previously discussed (e.g. Vendor Neutral, Master Vendor and Hybrid). A VMS is a web- or cloud-based, procure-to-pay software system that automates procurement and tracking of contingent workforce and supplier management services.
What is MSP?
A Managed Services Provider (MSP), also referred to as a Managed Supplier Program provides a comprehensive contingent workforce management solution and recruitment strategies. An MSP is responsible for managing a company’s entire workforce life cycle including supplier management, requisition management, onboarding, timekeeping, invoicing and payment, contract termination, and offboarding. It will typically partner with a leading vendor management system (VMS) to provide transparent reporting and tracking, allowing companies full visibility into their supplier base and their contingent workers.
In addition to contingent workers, MSPs can manage and track a variety of workforce types including, temp-to-hire, independent contractors (1099s), SOW engagements, direct hire, and gig-economy workers, offering a total workforce solution.
When to Consider Using an MSP?
There are key considerations and recruiting strategies you need to address when considering an MSP to manage your contingent workforce, or as a total workforce management solution. You’ll need to review your goals and assess whether your organization can meet them with your existing internal resources.
As part of your evaluation be sure to consider the following reasons that typically lead companies to engage an MSP provider, including:
The complexity of your existing workforce is increasing rapidly. You are engaging a variety of worker types, including contingent workers, independent contractors (1099s) and SOW workers.
Your internal workforce managers spend an increasing amount of time managing workers, and other worker types. This includes managing and tracking a growing number of staffing suppliers.
Your organization needs clear guidance regarding worker classification regulations and compliance to avoid worker type misclassification, which could potentially lead to litigation.
You need complete visibility into your workforce spend and associated costs and are seeking to centralize your contingent workforce
Your organization wants comprehensive reporting and analytics to make strategic decisions regarding workforce utilization.
Benefits of An MSP Program
If your company has limited visibility to your worker spend and your internal HR team is dealing with a continuously growing list of staffing suppliers, you may benefit from a comprehensive MSP program. The right MSP program will help you streamline your workforce processes, provide you with full program transparency, reduce hard costs and capture soft savings, and help you mitigate risk and be in compliance with worker regulations.
Increased Program Visibility
Having an accurate picture of your contingent workforce is important when measuring your contingent workforce program’s efficiency and true costs. Consolidating your contingent workforce under an MSP will help your company achieve complete visibility into your contingent workforce spend. You will be able to track not only spend, but also time to fill, turnover rate and candidate quality.
Consolidating your contingent workforce program under an MSP helps companies reduce hard costs and capture soft savings. The first step towards cost savings is conducting a spend analysis based on your current staffing supply chain. The information learned during a cost analysis will be used to lower standardize your suppliers’ rates. Other cost saving opportunities available by having an MSP in place include tenure discounts and overtime management.
Supply Chain Management
Managing your supply chain and your contingent workforce go hand in hand with an MSP. An MSP offers a proven model to manage every aspect of your supply chain, including rationalization and optimization processes to help you vet suppliers and to develop standardized supplier rate cards. The benefits of supply chain management under an MSP also include, negotiating terms, processing payments, and quicker talent delivery.
High Quality Talent Delivery
MSP providers have access to a larger supplier base than a company alone and can quickly find high quality talent via their strategic supplier relationships. Your company will benefit from these relationships by consistently receiving high quality candidates that meet your specific skill set requirements. Access to the best talent helps companies remain competitive to reach their organizational goals.
Compliance and risk mitigation are of the utmost importance, especially in the current business landscape, and companies must guard against ever increasing risk and liability when engaging contingent workers. By having an MSP in place companies can leverage the MSP’s compliance and risk mitigation expertise to ensure adherence to regulatory mandates at a local, regional and global level. An MSP can help with accurate worker classification, taxation management and data privacy initiatives.