May 16, 2024
As the composition of workforces continues to evolve globally, organizations are embracing hybrid models that blend permanent employees with contingent labor. 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 programs – come into play. In the world of recruitment, managed service provider or MSP refers to the full program management of hiring contingent workers into an organization 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.
As businesses sharpen their focus on productivity, the implementation of an MSP can be a transformative solution. Ultimately, it allows organizations to channel their time and resources into core business priorities, delegating the complexities of managing their contingent workforce 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 labor market and the never-ending changes to legislation and associated risk if you get it wrong. If you employ contingent labor, how you organize and manage those skills in a compliant way is becoming increasingly complex, leaving organizations with two choices: either they continue to plow resources into managing it themselves or outsource it to an MSP.
Rising costs and lack of visibility around spend and trends are other triggers that frequently come into play, particularly where organizations 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 labor – from compliance through to transparency and centralization 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.
The final challenge organizations frequently face is around scarcity of talent and the increasing fragmentation of 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 organizations to address their present and future skills requirements. Through their extensive networks, they uncover alternative talent pools to meet future demand. This is an area they continually invest in and one area that can be hard to replicate organically.
The key to successful implementation
Deciding to implement an MSP into your business is essentially recognition that change is needed, and as such should be approached as you would any other change management program. Paramount to its success will be the engagement and buy-in from hiring managers. Without their commitment, realizing 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 program, complementing our broader implementation plans. Our approach centers 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 designing the MSP around those needs. Simplicity is also essential, stripping away complexity and making it easy for hiring managers to engage in the program.
Next, we assemble an implementation project team which consists of our experienced implementation team and individuals from within the organization 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 program, 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 labor. 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.
Data is another key advantage of having an MSP on board. Data underpins much of an MSPs approach. They continually analyze 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.
The implementation of an MSP is a strategic shift that enables organizations to delegate the intricacies of contingent workforce planning, management, and compliance to dedicated MSP providers while allowing them to resources and time on other key business priorities.
To find out more about Flexhuis MSP solution click here or contact us at hello.usa@flexhuisglobal.com