In today’s economy, employers large and small are striving to cut costs while increasing flexibility. As a result, more and more are relying on a contingent workforce. Such a workforce enables them to keep overhead low and still access the people they need, where and when they need them.
In fact, according to a recent U.S. Department of Labor survey, approximately 30% of the American workforce (or 42.6 million people) are in contingent positions. Likewise, in a report on trends shaping the next decade, software company Intuit estimates that 40% of the workforce will be contingent by 2020.
While contingent workers offer companies a host of benefits, finding the right professionals and effectively managing them – all while staffing needs fluctuate throughout the year and new demands arise – can pose a challenge to employers.
That’s where Managed Staffing Providers (MSPs) come in.
In essence, MSPs oversee all aspects of the procurement of contingent workers, including the selection of staffing vendors and measuring each one’s effectiveness. But is working with an MSP right for you? If you’re not sure, here are five reasons to consider it:
Reason #1: Knowledge of the right staffing vendors.
An MSP firm strives to offer you a complete and efficient workforce solution by leveraging relationships with multiple staffing companies. As a result of these relationships, they know which staffing vendors are right for which needs. For instance, if you’re looking for an applications developer for a project lasting six months, your MSP will know which staffing vendors have the best-fit capabilities to help you.
Reason#2: Faster access to workers.
In addition, an MSP firm can work faster. Most companies have a hiring process that can last anywhere from 60 to 90 days. MSPs, on the other hand, can create a requisition and have a contingent worker on board in just a few weeks.
Reason #3: More competitive rates and cost savings.
By consolidating the buy, your MSP firm enables you to enjoy more competitive rates and associated cost savings. MSPs are also regularly evaluating rates and comparing them across the marketplace to give you access to the best buys.
An MSP firm can save you money in the long-term too in the form of higher quality workers and satisfied hiring managers.
Reason #4: A single point of contact for all staffing needs.
Rather than dealing with dozens of staffing companies, you can look to one MSP firm to manage all your staffing needs.
Another benefit of this type of relationship is that you pay the MSP directly; your MSP provider then distributes payments to the various staffing vendors. As a result, you don’t have to deal with contracts and invoices from multiple vendors.
Reason #5: Accountability and transparency.
It is the job of your MSP to manage multiple staffing vendors and measure their effectiveness according to your standards and requirements. MSPs typically use a Vendor Management System (VMS) to create detailed metrics on each vendor. They can therefore show you which ones are performing well and which are not.
Partnering with a reputable MSP provider can be your key to managing and maximizing your company’s use of contingent labor. Not only can they save you money, they can also help you leverage a wide range of talent and measure the performance of each staffing vendor, all while complying with regulations.
Ready to explore the use of an MSP?
Contact CSSvSource. As an experienced MSP firm, we can manage all aspects of your staffing function, so you can focus on other priorities. Contact us today to get started or learn more.