Optimising contingent workforce strategy with MSP

As the composition of workforces continues to evolve globally, organisations are embracing hybrid models that blend permanent employees with contingent labour. This strategic shift not only offers employers the flexibility to address current and future skills requirements but also unlocks a range of advantages.

But managing this hybrid approach is not without its challenges. This is where MSPs – managed service programmes – come into play. In the world of recruitment, managed service provider or MSP refers to the full programme management of hiring contingent workers into an organisation and managing all aspects of their employment.

Typically, this is an end-to-end process that includes the process of searching, hiring, onboarding, compliance, contractual management, payrolling and off-boarding of contingent workers. MSPs support a comprehensive contingent workforce strategy, ensuring seamless integration and operational efficiency.

As businesses sharpen their focus on productivity, the implementation of an MSP can be a transformative solution. Ultimately, it allows organisations to channel their time and resources into core business priorities, delegating the complexities of managing their contingent workforce strategy to the capable hands of the MSP.

Common challenges that signal the requirement for MSP services

One of the main driving factors for a shift towards an MSP model is around the ever-evolving labour market and the never-ending changes to legislation and associated risk if you get it wrong. If you employ contingent labour, how you organise and manage those skills in a compliant way is becoming increasingly complex, leaving organisations with two choices: either they continue to plough resources into managing it themselves or outsource it to an MSP. Outsourcing ensures a smoother and more compliant contingent workforce strategy, critical in today’s regulatory environment.

Rising costs and lack of visibility around spend and trends are other triggers that frequently come into play, particularly where organisations are reliant on multiple suppliers to provide the talent they need.

One of the major benefits an MSP brings is technology. Technology to manage all aspects of contingent labour – from compliance through to transparency and centralisation of costs. Investing in this technology can be costly; requiring resources to implement and manage it effectively. MSPs already have this technology within their toolkits, so it’s a turnkey solution, ultimately saving you time and money while enhancing your contingent workforce strategy.

The final challenge organisations frequently face is around scarcity of talent and the increasing fragmentation of the talent market. Particularly, the demand for technology skills remains exceptionally high and identifying candidates with these exact skills can be costly. MSP providers excel in collaborating with organisations to address their present and future skills requirements. Through their extensive networks, they uncover alternative talent pools to meet future demand, which is a critical component of a robust contingent workforce strategy.

Two businesswomen sharing ideas on contingent workforce strategy during a meeting in the office.

The key to successful implementation

Deciding to implement an MSP into your business is essentially a recognition that change is needed, and as such should be approached as you would any other change management programme.

Paramount to its success will be the engagement and buy-in from hiring managers. Without their commitment, realising the full benefit becomes challenging. This is something we see time and again at Flexhuis and is the reason why we have designed a 12-week change and engagement programme, complementing our broader implementation plans. Our approach centres on the hiring manager community, supporting and engaging them through new ways of working and building the trust that will ultimately ensure it is successful.

This all starts with alignment. Alignment with the hiring managers to really understand their needs and then design the MSP around those needs. Simplicity is also essential, stripping away complexity and making it easy for hiring managers to engage in the programme. A solid contingent workforce strategy can only succeed when hiring managers are fully aligned with the goals of the programme.

Next, we assemble an implementation project team which consists of our experienced implementation team and individuals from within the organisation itself – for example the contract manager who acts as the single point of contact for the MSP and the business. Once implemented, the contract manager usually continues to manage the relationship with the MSP, but at Flexhuis we also set up a Steering Committee. This Steering Committee reviews the programme, acting as a point of escalation if necessary as well as driving innovation.

Benefits of partnering with an MSP

Partnering with an MSP ultimately helps free up time and eliminates the manual aspects often involved in managing contingent labour. By their very nature and experience, MSPs have developed efficient processes and have the right tools in place to support those processes, allowing your talent acquisition teams and hiring managers to focus on other business priorities. This forms a vital part of any forward-thinking contingent workforce strategy.

Data is another key advantage of having an MSP on board. Data underpins much of an MSPs approach. They continually analyse data, reporting on key themes such as time to fill, costs and challenges around specific role profiles which help you make more informed workforce planning decisions. Also, through this data they can identify areas for improvement to drive an even better candidate experience and further enhance your employer brand and ability to attract contingent talent.

Finally, it’s about mitigating risk. MSP providers should be on top of current and future employment legislation. They should proactively consult with you on any upcoming changes so that you have time to adapt before they come into force. Importantly, they ensure compliance throughout the supply chain, ultimately protecting your business and strengthening your contingent workforce strategy.

The implementation of an MSP is a strategic shift that enables organisations to delegate the intricacies of contingent workforce strategy, planning, management, and compliance to dedicated MSP providers while allowing them to focus resources and time on other key business priorities.

Find out more about Flexhuis’ MSP solution or contact us at hello.uk@flexhuisglobal.com

August 31, 2023

Optimising contingent workforce strategy with MSP

Common challenges that signal the requirement for MSP services

The key to successful implementation

Benefits of partnering with an MSP

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