After countless attempts at self-managing your contingent labor program, you've decided to take the leap and bring on a professional. You know the right Managed Services Provider (MSP) will need to seamlessly integrate with your company, have relevant industry experience, and make financial sense. But how do you know what you really need from an MSP partner?
An MSP is an organization engaged by a company to manage its contingent labor processes and associated vendor supply chain. MSPs manage the talent acquisition process, contribute to non-employee onboarding and offboarding, and oversee vendor compliance and performance. The MSP is, in essence, the engine behind most managed staffing programs. Understanding how your MSP program will operate is equally as important as who you'll ultimately select.
When choosing your MSP, there are some basic factors to consider and others that are more complex. To start, you'll need to understand how much contingent labor is currently costing your organization. This is unique to each company and is partially driven by the number of contingent workers and suppliers. Before engaging an MSP, you'll want to know how purchasing decisions are made for the various segments of flexible labor and what controls are in place to manage the program.
The early stages of your MSP program are typically focused on transactional successes, such as cost reduction, establishing processes and procedures, and evaluating vendors. Over time, however, the focus should shift to more strategic aspects of how non-employees enter the company and how these workers are managed and engaged.
When you begin searching for an MSP partner, you want to evaluate both your program and the provider holistically. Since most MSP programs are long-term commitments, it's important to do your research.
To help you assess whether one MSP is a better fit than another, here are six things you should look for in a provider.
Many companies rely on several providers to manage contingent workforce programs: one for staffing, one for payroll, one for RPO, and so on. Selecting one dedicated partner that not only provides MSP services but also offers a variety of additional solutions creates a single point of contact.
By streamlining communication and enabling the provider to gain visibility into multiple aspects of your workforce spending, the right partner can help your organization save time and money. A single provider with a full range of services can offer a more comprehensive solution.
Your provider should have relevant industry experience. The best people to manage your contingent labor needs are those who have worked in your industry and understand its unique challenges. Don't be afraid to ask potential providers about the credentials of the team you'll be working with, including their recruiting expertise and knowledge of contingent workforce laws and compliance requirements.
A credible provider understands that your organization's needs and circumstances are unique. There is no one-size-fits-all approach. Your MSP partner should research your company, evaluate your contingent labor requirements, and make recommendations for a tailored program.
To determine whether your investment is paying off, your strategic partner should benchmark productivity, analyze staffing patterns, report on efficiencies, and recommend improvements. Understanding their reporting capabilities upfront will enable you to measure the program's success and establish benchmarks for future stages.
Make sure you're working with a well-established company that has a history of success and financial stability. Ask for client references and consult HRO Today's Baker's Dozen rankings for top-ranked MSP providers.
The ultimate goal for any potential partner should be to establish a strategic alliance in which your organization's success and long-term vision are central to the relationship. A strong alliance is built over time and advances the goals of everyone involved.
An MSP can deliver immediate cost savings, but the real measure of success is finding a partner that will evolve as your program's priorities and business needs change over time.