Change is an ongoing challenge for businesses, and this means getting the best talent is more important than ever. Whether it’s technological advances, shifts in customer behaviour, or the ‘new normal’, your success will depend on having the right people in place.
The use of contingent workers has been rapidly growing over the years, and the demand is set to accelerate. In a recent study by McKinsey, 70% of business leaders said they were planning on hiring more contingent workers after the COVID-19 pandemic than they did before.
The knock-on effect is increased pressure on businesses to manage their expanding contingent workforce. It’s why partnering with a Managed Service Provider (MSP) is becoming a popular option. By using an expert third party to take on the responsibility for your contingent workforce programme, you can gain a better oversight, whilst reducing the demands on your own teams.
Here, we look at some of the main benefits of teaming up with an MSP.
1) Operational and cost control
When you engage an MSP, the decision of what gets managed by them and what stays in-house is completely yours. This allows you to outsource the tasks which are more repetitive and time consuming, whilst still having managerial responsibility for the service. It becomes a win-win situation, as you and your team can focus on things that add greater value to the business, without losing control of what matters.
You will also find significant cost savings by using an MSP. Their pricing models are more predictable (for example outcome-based pricing), and third-party recruitment fees will also decrease.
Finally, your supply chain will become much more efficient, as all contractor and supplier engagement is done through one single provider. This not only saves you time, but many MSPs will reduce the number of suppliers in your network, therefore bringing costs down even more.
2) Global talent pipelines
If your business operates in multiple countries, or if you’re about to expand heavily, your talent pipeline needs to be global. This can be a challenge, and is one of the reasons organisations like to partner with an MSP that also operates globally. They will have the ability to attract and retain the best people in all of your locations, as well as valuable local know-how.
This last point is especially important as each country has its own labour laws and working culture. Rather than you having to get to grips with each one individually, you can allow the MSP to use their on-the-ground expertise.
3) Access to cutting-edge technology
When it comes to recruitment technology, things are constantly evolving. Internal recruitment teams are either not aware of the latest tools, or unable to purchase them. This is because investing in single-use technology is not commercially viable for most businesses.
An MSP on the other hand, will have access to all of these tools and will use it for your talent acquisition needs. Not only does this give you an edge over your competitors, but it means you get the benefits of the technology without having to invest your own capital.
As mentioned earlier, change is a constant challenge, and this means agility is key. When the market shifts, you need to shift with it and adapt your recruitment accordingly. An MSP will have the experience and ability to not only guide you in the right direction, but actually take the actions required. This means that even in highly competitive markets, you can attract the talent that’s best for you, at the exact time you need it.
When it comes to hiring, there can be peaks and troughs throughout the year. One of the reasons businesses look for an MSP is because they can scale the programme up or down depending on their hiring needs. It’s far more difficult to do this if everything is kept in-house, or if you’re trying to work with multiple agencies on a piecemeal basis. But an MSP will see themselves as a partner rather than a supplier, so will always be able to provide that flexibility.
As touched upon earlier, using an MSP allows you to outsource parts of the programme without losing control. Part of this control relates to visibility – you will always want full oversight of your contingent workforce. Most MSPs will provide you with a bespoke Vendor Management System (VMS). This means you can keep a handle on all the key metrics and build a better workforce strategy.
7) Best practice methods
Just in the last few years, many HR teams have had to deal with the complexities of Brexit, IR35 and the COVID-19 furlough scheme. It can become a bit of a bureaucratic nightmare, but partnering with an MSP give you access to experts in all legislative and governance requirements. This gives you the peace of mind that your business is fully compliant. Quite often, the MSP will also offer to train and educate your team on upcoming changes.
8) Employer branding expertise
With so much demand for contingent and flexible workers, you need to make sure you’re appealing to the best talent on the market. This is particularly important in a post-pandemic world, as the needs and expectations of candidates have changed.
A good MSP can work with you, as well as any of your suppliers, to develop a strong employer brand and Employee Value Proposition (EVP). This is an end-to-end process, from research into what candidates want, right through to practical recruitment marketing strategies.
The key takeaway
Engaging with an MSP is a win-win for any business that has a substantial temporary workforce. It provides control without overwhelming your resources, and allows you to access high-class expertise in a cost efficient way.
Finding an MSP that can become a strategic partner is key to attracting, onboarding and retaining quality contingency workers. Get this right, and your business will be well positioned for success.