Managed Services Programs (MSP) are a business solution where a company outsources the management of their contingent workforce. MSP partnerships have many benefits, including cost savings, process efficiencies and improved quality of hire in temporary workforce management. On average, MSP partnerships can deliver 10-20 percent cost savings in the first year.
The Hudson Talent Solutions talent experts have driven exceptional results in many different MSP partnerships. Based on their expertise, these are the four signs that tell you it’s time to consider an MSP.
1. Lack of talent vendor oversight:
Managing a contingent workforce often means managing multiple talent vendors and agencies. A lack of clarity around the size of the contractor workforce, who is employed, how much they are paid or how long they have been employed opens risks around costs and employment claims. If this resonates, an MSP can provide the solution you need.
Acting as a centralized point of contact, your managed service provider can streamline vendor processes, consistent performance, and reduce costs while providing one source of truth. This frees up time for you to focus on your core business with clarity and better insights into your contingent workforce.
2. Rising flexible workforce costs:
When scaling regionally or globally, managing costs associated with a flexible workforce can be challenging. If you find yourself with increasing costs without clearly understanding where the expenses are coming from, an MSP can help.
The MSP model of your choice will either centralize workforce management with one vendor or let the MSP handle vendor contracts. Your dedicated talent experts also bring expertise in optimizing cost structures and identifying cost-saving opportunities. Engaging a Managed Services Program provider will help you manage and control your contingent workforce costs.
3. Concerns about labor laws and compliance:
Navigating labor laws and regulations can be complex, especially when managing a contingent workforce across different regions. A managed services program can provide the necessary expertise to help you meet legal obligations and ensure compliance.
The talent experts in a managed services partnership bring a wealth of knowledge and understanding of legal requirements. They ensure your contingent workforce is compliant while managing the hiring process end-to-end. This opens up all the opportunities of a flexible workforce while minimizing risk.
4. Changing contingent talent needs:
Does your organization experience fluctuating talent needs due to project-based work, seasonal demands, or business growth? An MSP can offer the flexibility required to scale your contingent workforce up and down as required.
MSPs have access to a vast talent pool of qualified candidates and the ability to source talent promptly. They can help you build a dynamic contingent workforce with access to the right talent to drive your business success.
Is MSP right for you?
If any of the above signs resonate, it might be time to consider a Managed Services Program. Learn more about our MSP solution or speak to one of our talent experts today.
