Did You Know? Managed Service Providers Empower Companies by Delivering Insights Through Analytics - nextSource

In this “Did You Know” series, we’ll explore many ways that a Managed Services Provider (MSP) in the contingent workforce space can help your business – from streamlining processes to gaining better insights into your analytics.  

Let’s face it – managing a workforce program that combines permanent workers with temporary employees can be more complex and challenging than managing employees. Many an organization has taken on contingent (a.k.a. temporary) workforce management in-house, only to find it overwhelming, time-consuming, and open to risk. This is where Managed Service Providers (MSPs) specializing in contingent workforce solutions come into play.  

When building a business case for partnering with an MSP, one of many factors is their ability to not only provide transparency and data, but to read between the lines to deliver actionable analytics. By harnessing the power of analytics, MSPs can help mid-market companies optimize their workforce strategies, reduce costs, and improve overall performance. 

Here are some ways analytics can serve your company:  

Comprehensive Workforce Visibility

One of the primary benefits of partnering with an MSP is gaining a holistic view of your contingent workforce. Through advanced analytics, MSPs provide mid-market companies with: 

• Real-time dashboards to visualize key metrics and trends at a glance 
• Detailed worker profiles to access comprehensive information on skills, experience, and performance 
• Spend analysis that breaks down costs by department, project, or worker category 
• Utilization tracking to monitor how effectively contingent workers are being deployed across the organization 

By consolidating data from various sources and presenting it in an easily digestible format, MSPs enable mid-market companies to make informed decisions about their workforce strategies. 

Predictive Staffing and Demand Forecasting

Analytics-driven MSPs go beyond historical reporting to help companies anticipate future workforce needs. This proactive approach includes: 

• Seasonal trend analysis such as identifying ebbs and flows of patterns in workforce demand throughout the year 
• Project-based forecasting that helps estimate staffing requirements for upcoming initiatives 
• Skills gap prediction which enables managers to anticipate future talent shortages and plan accordingly 
• Market rate projections that can forecast changes in labor costs to inform budgeting decisions 

Armed with these insights, mid-market companies can strategically plan their contingent workforce needs, ensuring they have the right talent in place at the right time and at the right cost. 

Performance Optimization and Quality Improvement

MSPs leverage analytics to help companies maximize the value of their contingent workforce. Key areas of focus include: 

• Worker performance metrics that track individual productivity levels 
• Quality scorecards to assess the caliber of work delivered by contingent staff and suppliers 
• Time-to-productivity analysis which measures how quickly new workers are onboarded and become fully effective 
• Retention and turnover insights that identify factors contributing to hiring manager and worker satisfaction as well as worker longevity

By continuously monitoring these metrics, MSPs can help mid-market companies identify top performers, address quality issues, and implement strategies to improve overall workforce effectiveness. 

Cost Control and Savings Opportunities

For mid-market companies, managing costs is crucial. MSPs use analytics to uncover savings opportunities and optimize spend: 

• Worker rate benchmarking is used to compare contingent worker rates against industry standards 
• Vendor performance and rate benchmarking analysis is important to evaluate suppliers based on cost, quality, and responsiveness 
• Overtime and utilization optimization can quickly identify areas of inefficiency and overuse 

These insights enable companies to make data-driven decisions that balance cost considerations with workforce quality and productivity. 

Compliance and Risk Management

Navigating the complex regulatory landscape surrounding contingent workers can be challenging for mid-market companies, especially when legislation is constantly evolving at the Federal, state, and local levels. MSPs use analytics to help mitigate risks through the following: 

• Worker classification audits to ensure proper categorization of employees vs. independent contractors  
• Tenure tracking to monitor assignment lengths to comply with co-employment regulations 
• Certification and credential management that tracks and verifies required qualifications 
• Diversity and inclusion metrics that measures and improves workforce diversity initiatives 

By proactively identifying and addressing compliance issues, MSPs help mid-market companies avoid costly penalties and legal complications. 

MSPs equipped with robust analytics capabilities offer mid-market companies a powerful tool for optimizing their contingent workforce strategies. By delivering actionable insights across various aspects of workforce management – from visibility and forecasting to performance optimization and risk mitigation – Managed Service Providers enable these companies to make informed decisions, improve efficiency, and drive business success while avoiding risk. 

As the contingent workforce continues to edge up to nearly 50% of the workforce, partnering with an analytics-driven MSP can provide mid-market companies with the competitive edge you need to thrive in an increasingly complex and fast-paced business environment. By leveraging data-driven insights, your company can build a more agile, cost-effective, and high-performing workforce that adapts to changing market conditions and drives long-term growth.