What is an MSP and does your business need one?

79% of businesses reported that their external workforce is a key factor in enabling business performance. Yet, in a recent study, it was found that just 10% of companies do enough to get the full value out of their contingent workers.

So how can organizations get the most out of their external workforce? Look no further than a Managed Service Provider (MSP).

When you partner with an MSP you’ll not only get access to the most qualified talent available, but will develop a customized process for managing your contingent employees, complete with lower staffing costs, regular compliance checks, and the latest technology.

What is an MSP?

A Managed Service Provider is an innovative contingent workforce solution where a third party fully manages and supports a company’s temporary, direct-to-hire, and gig workers. The MSP assumes all or a portion (depending on business needs) of an organization’s HR functions for these workers, from recruitment, to onboarding, to keeping detailed logs of employee headcounts.

A staffing MSP will deliver a streamlined (and rigorously designed) process for finding and retaining external workers. This includes helping your business stay compliant with all current labor regulations and providing analytics on your external staff, helping you to drive data-backed decisions about your workforce.   

How does an MSP work?

When your business partners with an MSP, you’ll gain a team of experts to both manage and optimize your external staffing program. This team will use technology such as a Vendor Management System (VMS) to provide streamlined workforce solutions to provide the following:

• Increased visibility and access to top talent
• Lower hiring costs
• Regulatory compliance checks
• Risk mitigation
• Talent supply chain solutions
• Flexibility and scalability of the workforce
• Market intelligence and predictive analytics
• Performance management

When do you know you need an MSP?

While all businesses can benefit from a Managed Service Provider, there are signs your company needs an MSP to optimize day-to-day operations. Aside from needing qualified talent quickly, if your organization is experiencing issues with labor compliance, workplace accidents, cooperating with different vendors, or employee retention, a staffing MSP can help.

Here are some questions to ask yourself if you’ve been thinking about partnering with a staffing MSP:

• Are we finding and hiring temporary, direct-to-hire, and gig workers in the most cost-effective way?
• Do we have a system in place to mitigate risks and check compliance?
• Are we effectively using technology to report and analyze the efficacy of hiring a contingent workforce?
• Do we have a process to vet and review talent suppliers and other vendors?

If you answered “no” to any of these, an MSP can be beneficial to your business.

Can an MSP save you money?

More than one-third of workforce spending is on contingent workers. An MSP can help you lower costs associated with your external workforce, allowing more money to be put into developing your business. Here’s how a staffing MSP can save you money:

1. Lower hiring costs

It costs an employer an average of $4,129 for every new hire. A staffing MSP has direct access to staffing suppliers and talent communities, meaning your company won’t need to spend money on job advertisements and time spent interviewing. 

2. Less downtime

It’s no secret that time is money. And if your business can quickly add external staff, you’ll be able to complete projects faster, and take on more tasks/ projects.

3. Scalability

Is your business looking to grow? A staffing MSP will work with you to make sure the right systems are put in place to allow for scalability and increased production. 

What is a Vendor Management System (VMS)?

One of the greatest benefits of working with a staffing Managed Service Provider is the tools that come with it. With an increasing reliance on contingent workers, organizations must gain insights into who is working for them, when, and at which rates, in order to make smarter business decisions. This is where a Vendor Management System (VMS) can help.          

A VMS is a cloud-based software that MSPs use to take care of the vendor management process from start to finish. A staffing MSP will use a VMS to find external workers, monitor KPIs, keep track of employee headcount, report on compliance, and more. Popular Vendor Management Systems include Beeline and SAP Fieldglass.

Why partner with Adecco?

91% of executives believe the need for external workers will grow over the next three years. Now’s the time to put a program in place for contingent staff with the help of an experienced MSP. With more than 60 years of experience, Adecco has both the knowledge and VMS technology necessary to help your business stay ahead.

Through our client-based approach, we put your organization first, offering not one, but two MSP teams (an account management and an account delivery team) dedicated to providing the best workforce solutions. Our Adecco MSP program has developed over 500 customer solutions using 25+ VMS tools, helping more than 140 companies effectively manage their contingent employees.

Are you ready to transform your external workforce? Check out our Managed Services Provider page to read case studies about businesses we’ve worked with, or speak with one of our staffing experts to find the right solution for you.