Top 6 Reasons to Work With an MSP Staffing Provider
Contingent workers are a large part of any industry. In recent times, companies often need to deal with rapid growth or expansion to stay relevant. For this purpose, they frequently need to increase their workforce across various job roles. If your company has seasonal or variable staffing requirements, managing contingent workers can be a tricky and balancing act.
To hire and manage contingent workers, you need a pool of talent that you can tap into whenever you need to hire candidates. However, managing a contingent talent pool and dealing with the process can be time-consuming and complicated for the in-house recruitment team. Many businesses use freelancers, temporary consultants, and contractors.
One of the most cost-effective and flexible solutions is to partner with a Managed Service Provider. It is the perfect way for a company to manage its on-demand workforce. Managed staffing services providers handle the end-to-end recruitment process of contingent laborers. At the same time, it can provide solutions to any company’s temp staffing problems. There is a streamlined source of human resources without any headache when an MSP is integrated.
6 Reasons Why You Should Work With an MSP Staffing Provider
Hiring an MSP is a wise decision, especially when you are consistently handling a contingent workforce. Here’s why –
Cost-effectiveness is a significant reason behind any company hiring an MSP or RPO service provider. Businesses that go through on-demand staffing requirements internally deal with many unexpected additional costs. It is often related to time, compliance, the total number of workers, and supply chain management.
Companies can spend a lot before they even realize it, and by the time they recognize the significance of the additional costs, it is too late. This is not a new problem, and most companies spend many resources managing their contingent workforce. If your company runs on a tight, well-controlled budget, overspending can be a severe problem for the organization.
Working with an MSP can be an efficient solution to this problem. The standard estimate is, working with an MSP staffing provider saves around 10-20% initially. However, as companies and hiring managers keep working with the MSP, soft savings and increased efficiency can boost the saving amount 5-10% more. In the long run, using a tried and tested MSP results in a stable expenditure with a growing profit margin.
Total Compliance and Risk Mitigation
MSP service providers provide customized contingent programs for every organization. These programs are tailor-made for your organization and budget. Using expert consultants and advisors helps companies reduce hard costs. Also, it can help to identify soft saving opportunities and optimize contract structures.
MSP will also negotiate supply rates with suppliers, manage staffing invoices and contracts, ensure compliance, and manage the full-cycle recruitment process of contingent workers, from sourcing to screening, recruiting, and offboarding. It is an all-encompassing process that helps a business.
Suppose you are expanding your contingent workforce program across the states and countries. In that case, MSP will also deal with local law and regulations around the US and abroad, data protection policies, worker privacy compliance, and supplier and worker vetting process.
It is essential to know employment laws, tax regulations, and compliance regarding labor regulations across the state and countries you’re working. It is always not possible for a generic brand to own the resources for the purpose. Hiring an MSP will solve that issue for you. As they are pretty experienced handling the matter, there will be less chance of any technical glitches.
Vendor Managed Network of Suppliers
For most companies, managing the supply of temporary workforce can be challenging, especially when dealing with their workforce network. Top MSP service providers such as QX Global Group are constantly expanding their global pipeline. This step gives them access to a vast network of third-party staffing agencies and suppliers that they can tap anytime to source and hire the best and brightest staff. Top companies such as QX Global Group use Vendor Management System to streamline the process faster.
Hiring top MSPs is suitable for monitoring the business climate and communicating with suppliers to understand the labor demands. Best MSPs track supplier performance metrics and adjust or choose vendors accordingly. MSPs can warn vendors or remove a vendor and bring in a new vendor depending on their performance. It is easier for companies to see through the process because of the provided information and metrics.
One of the best advantages of working with an MSP is the streamlined sourcing, hiring, and management process. When assumes the role of a central staffing conduit; an MSP can eliminate inefficiencies and boost productivity. Also, it can reduce the burden of supervising both contingent workers and permanent employees on your payroll. This process will improve overall employee satisfaction and the quality of an engaged workforce.
MSP staffing companies are experts at operational management such as onboarding, timekeeping, invoicing, and contract termination. Additionally, they will improve the workflow, make better contingent strategies, and maintain a transparent acquisition process. In short, an MSP can uplift the work culture in an organization in a short period.
Low Recruitment and Onboarding Cost
Since MSPs approach workforce management with a streamlined and centralized process, employers can witness a significant cost reduction in the recruitment process and over the entire duration of an employment contract.
MSPs provide timely, cost-effective, and on-demand staffing solutions to companies they partner with for better productivity. MSPs control the cost by scaling the supply to suit individual organizations and their needs during each period.
Analytics and Measurable ROI
Most companies often do not have the expertise or personnel to interpret, collate, and analyze the potential workforce-related data generated from the day-to-day business. Partnering with an MSP will change the scenario by providing easy access to business intelligence.
An MSP will provide critical insights related to contingent workforce performance, spend analysis, budget forecast, cost control, and efficiency issues and opportunities. It is an all-in-one solution for the companies, especially for those who struggle with a limited budget and can not develop a separate wing for the very purpose.
Top MSPs deliver immediate return on investment by scaling down on-demand workforce recruitment and managing cost. MSP customized contingent programs will react to shifts in your recruitment needs. It is vital to note that, according to several reports, their demand has been growing over the years at 12% since 2014.
Why MSP is a better option for IT Industry
IT companies often need contingent workers in bulk which makes MSP a viable recruitment option. Top IT companies are constantly innovating and evolving, and they often need a massive workforce to deal with such requirements. If top Silicon Valley companies need a contingent workforce, they can partner with Manpower or other similar companies. However, even for RPO service companies, it cannot be easy to supply contingent workers consistently on a large scale.
This reason is why MSP becomes a viable solution to companies requiring many contingent workers consistently, and it is often IT companies that require maintaining such a workforce. Even before the pandemic, the IT industry needed remote workers, and MSP solved that problem. With a massive talent pool under their finger, they can tap into the pool and provide the necessary workforce to IT companies.
Managed IT Service Providers have a global talent pool, and they manage a supply chain with staffing firms around the globe. Because of this, they can provide staffing support to companies around the world. While RPO providers can provide a workforce locally, MSP can provide contingent and remote workers at a much faster rate. This facility can ensure greater efficiency and better uptime, which is not affected in any crisis that is not global.
MSP uses technology to streamline the process and hire faster and better quality candidates than any in-house team. The main reason behind their success is the hundreds of staffing firms under their grip. They can source and hire efficiently without depending on a particular vendor. If a vendor is underperforming, MSPs can easily replace them with a new vendor that provides better-suited candidates for your company. While top Silicon Valley companies and top RPO companies only reach out to the leading staffing firms, MSP prioritizes faster and higher quality recruitment by leveraging staffing firms worldwide.
How and Why MSP Market has Better Penetrated US Geography
Most of the top MSP companies are based in the USA, UK, and Japan. Almost 40% of the MSP industry businesses are situated in the USA. Japan and the UK each contribute 20% of the MSP business.
The workforce in the USA is more comfortable with remote working and contingent working. A large number of freelancers, contingent workers, and remote workers are from the USA. UK and Japan sit right next. The lifestyle of the candidates and American candidate values are the main reasons behind MSPs penetrating the market in the US better than anywhere else in the world. Even before the pandemic, when the “new normal” was not here, candidates in the USA preferred remote working and freelancing.
Why MSP Recruitment is One of the Future Aspects of Better Recruiting
Even before the pandemic hit us, and industries had to get used to the “new normal” circumstances, MSPs delivered contingent workforce around the world using multiple vendors situated worldwide. While the IT industry already had the concept of remote working, many industries didn’t. At least it was not on a big enough scale to be noticed.
However, after the pandemic, companies had to get used to the “new normal,” which has become an inseparable part of any industry. Workers are finding remote working a better option, while companies are witnessing a boost in productivity. The pandemic will eventually go away, but remote working is here to stay. It is allowing a better candidate experience, increase in productivity, and flexibility of time.
With remote work becoming the new normal, it is safe to say that MSP recruitment is one of the future aspects of better recruiting. MSPs allow companies to reduce operation costs, save in-house workforce, save time, and find better-suited candidates worldwide. These perks will enable the business to direct the resources towards the core competencies. An MSP can ensure that remote work for a brand can continue, that too, with participation on a global scale.
Choosing an MSP for your organization can be confusing. Before partnering with an MSP, you must consider your challenges and problems and make sure the MSP understands your issues before providing their solutions. QX Global Groups offers MSP solutions to businesses in the US, helping them scale and streamline their contingent workforce management and recruitment service delivery capability.