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Flexible Workforce Solutions (MSP)
Flexible working is a growing trend that can add value to your business, but as much as they can help you, flexible workers come with added complexities. A well designed MSP ensures your contingent workforce works for you.
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What is an MSP in recruitment?
An MSP or Managed Service Programme is when a company outsources all or part of their contingent workforce management. But MSP can also be used as an accronym for a Managed Service Provider, which is the company that is delivering the Managed Service Programme in recruitment. A Managed Service Programme is synonymous with Contingent Workforce Management & Flexible Workforce Management.
Many organisations are now starting to understand the main benefits of using a Managed Service Provider (MSP) for the recruitment and management of their contractor workforce such as; reduced costs, increased visibility and greater compliance. Here are some other reasons more businesses are choosing an MSP solution for their flexible workforce management:
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
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.
Written before the COVID-19 pandemic, this useful guide offers insight to the 12 key components of a successful flexible workforce solution including Technology, Cost Control & Savings and Risk & Compliance Management. With key questions to ask of your organisation listed against each pillar, this guide should leave you with more clarity on the decisions you need to make to inform your flexible workforce strategy.
Learn more about Contingent Workforce Solutions
Three ways a Contingent Workforce Solution can save costs
A Contingent Workforce Solution also known as an MSP (Managed Service Programme) could help you unlock cost savings, provide greater control and more visibility over spend on your flexible workforce. Find out how in this article as we delve into the three main ways a Contingent Workforce Solutions can save costs.View article
How to gain visibility on the location, cost and output of your contractor workforce
Finding Information about the location, cost and output of your contractor population can be crucial when evaluating the performance of your contingent workforce. So how could a contingent workforce solution help your business secure greater visibility on your contractor workforce?View article
How a Managed Service Programme (MSP) for recruitment can increase compliance
Contractor compliance is a big factor to manage on your own; legislative requirements are always changing and one single human error can set you back a long way. So with this in mind, how could a Managed Service Programme (MSP) for recruitment help you?View article
3 ways a Managed Service Programme can help with IR35 compliance
If you're not familiar with the term MSP or Managed Service Programme, essentially it involves outsourcing the management of part or all of your off-payroll workforce.
A Managed Service Programme or MSP could help you manage the upcoming IR35 reforms.
Find out how in our short video.View article