From advancing your company culture to enhancing productivity, creativity, and customer relations, your workforce is integral to your success story. However, building a winning team requires a purposeful recruitment strategy. You should also adapt to the changing talent landscape as your business evolves. That includes tasking your workforce administration to a managed service provider (MSP). So, what is an MSP in staffing and why is it worth your while?
A managed service provider is an external organization that supervises a client company’s recruitment efforts. MSPs comprise dedicated program managers who collaborate with your company to source and manage temporary workers through your preferred staffing agencies.
When researching what is an MSP in staffing, you’ll probably come across the term Vendor Management System (VMS). This is a software that facilitates seamless data exchange between MSPs, recruiters, and your company. A VMS can help with:
Companies prefer traditional recruitment for several reasons. For starters, in-house talent management leverages your organizational skillsets to provide direct control over hiring costs.
Moreover, internal teams understand your company’s culture and talent needs to ensure that shortlisted candidates are a perfect fit. It’s also easier to make decisions and maintain confidentiality for sensitive roles.
However, traditional recruitment has its setbacks:
Savvy organizations realized they could address the aforementioned challenges by outsourcing the staffing process to agencies. A third-party recruiter can help with the following roles:
MSPs originated from staffing agencies, explaining the similarities in their operations. But although these entities help with talent placement, they are not the same. The first difference is in the scope of their services. While staffing agencies only match candidates with specific roles, MSPs manage your entire contingent workforce, including independent contractors and candidates from different staffing agencies.
Additionally, MSPs provide a holistic staffing approach, from supplying talent to workforce planning and providing analytics. This is unlike staffing agencies that only focus on staffing needs for specific roles and projects. Furthermore, managed service providers maintain long-term relationships with organizations for ongoing talent needs while staffing agencies focus on project-specific needs and filling immediate roles.
Employers with in-house hiring managers may wonder what is an MSP in staffing and why they need one. Even if your recruitment system is running smoothly, ask yourself, “Is my contingent labor quality worth the investment?”
Here’s how your organization will benefit from a managed service provider:
MSPs use advanced tools to screen resumes, conduct assessments, and organize candidate information, saving the time and cost of repetitive tasks. Additionally, they can recommend candidates from their pre-qualified talent pools instead of incurring the expense of hiring from scratch. Managed service providers also support scalability—rather than maintaining a redundant in-house team, MSPs supply talent on demand to keep up with the seasonal labor demands.
The provider will assess your current recruitment strategy and its risk potential. They will then assign compliance experts to implement staffing best practices to avoid the legal consequences and reputational damage associated with violating employment laws.
Vendor management systems have an extensive pool of contract workers with detailed information about their past roles and skills. This way, you access the desired talent within the stipulated timeframes without sifting through multiple job sites or undergoing tedious vetting processes.
Now that you have an idea of what an MSP in staffing is and the value it brings to your organization, let’s discuss whether you need this workforce solution.
Because a self-sufficient program requires a volume threshold, MSPs often ask for a minimum contingent labor spend from employers.
The following questions will help you determine whether an MSP staffing solution works for your company:
If your company’s internal workforce program lacks any of these, you’ll likely benefit from partnering with a managed service provider. You can establish your needs by evaluating your company’s objectives and whether your in-house staffing program can achieve these goals on time and within budget.
An MSP guarantees access to efficient, consistent recruitment processes that can stand the test of time. nextSource understands your unique staffing challenges, from administrative burden to the need for specialized skills. Rather than offering a “one size fits all” solution, our efficient strategies land you the right talent while cutting costs and ensuring compliance. If you still have questions about what an MSP in staffing is or want to leverage the power of this recruitment strategy, don’t hesitate to connect with us today.