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What is an MSP in recruitment?
A Managed Service Programme is when a company outsources all or part of their flexible workforce management.
Why should you consider a flexible workforce solution?
Here are the main reasons more businesses are choosing an MSP:
Demand consistent, pre-agreed and fair charges for an excellent service and the best flexible workers. Allow your MSP partner to uncover hidden costs
Know your flexible workforce. Use the latest technology to get real-time access to worker data; including spend profile, assignment length and much more
Protect your business from inferred employment, tax risk and worker regulations; both now and as legislation develops in the future
Design & implement efficient processes across the whole flexible worker assignment lifecycle, to make life simpler for all of your internal stakeholders, and a better flexible worker experience
Ever felt like your suppliers aren’t giving you much support with your flexible workforce challenges? Work with a dedicated team who will help you evolve your flexible workforce management practices
Remove the hassle and risk of managing the performance and compliance of your agency supply chain, whilst retaining access to your best-performing suppliers
Through MI & reporting, give your business the power of demanding improvement in the service you receive, as well as the volume & quality of the workers provided
Continuously improve your flexible workforce management, based on what your business needs. Gain access to the latest innovation and bespoke consultancy services
Implement a tailored delivery model that suits your unique requirements. Take a look at some of the main MSP models you can choose from below
Types of MSP
There are a range of models available, depending on your unique requirements:
A Master Vendor (MV) involves having a clearly preferred 1st tier vendor(s), usually the solution provider or a related company, source 60%-95% of your requirements.
The 1st tier is typically given a lead time to focus exclusively on your flexible worker assignment posts, using their enhanced knowledge of your business to find you the right candidates. The remaining 5%-40% of requirements are then sourced by a ‘2nd tier’ of external agencies, which are collaboratively selected from existing and new suppliers to support your business.
A Neutral Vendor (NV) involves having a completely neutral supply chain, with no party being offered extended lead times or a greater level of partnership.
Roles are released to all agencies at the same time, usually via technology, and there is a ‘first past the post’ model in place, creating a competitive environment.
There can also be ‘tiers’ within a NV model, with qualification to a higher tier being based on performance.
A Hybrid model basically means selecting whichever delivery model is best suited to a particular skill, geography or unique situation, such as unusually short timeframes.
Hybrid models are typically used where the complexity or variety of the skills required means that an agile approach is needed to ensure full delivery.
For example, you may wish to utilise the benefits of a single engaged partner as a MV for a particular skill or geography, whilst utilising a NV model for another. Mature MSP suppliers should be able to accommodate this.
A Contingent RPO essentially means the supply of contingent labour comes via Client branded sourcing activity and client dedicated recruiters.
Contingent RPO models are mostly utilised where clients have a very strong attraction brand and are keen to own the intellectual property of the candidates details.
A supply chain (as per Master Vendor) is still likely to be utilised to supplement the client branded sourcing activity.