What is a Managed Service Program (MSP) in staffing?
An MSP is fundamentally a solution that allows organizations to outsource their contingent workforce either in its entirety or partly.
Commonly, MSPs will either be master vend (a sole provider will manage the program) or neutral vend (a combination of suppliers will own allotted functions/business areas).
An MSP recruitment service enables organizations to be more efficient and generate significant cost savings, increase compliance and reduce risk to your business. Valuable time is released in your Human Resourcing and Talent Acquisition functions to focus on your permanent people strategy.
How can an MSP support my organization?
Managed Service Programme’s support organizations in many different ways, such as greater compliance and improved processes to reduce the risk of legal liabilities.
Programs can generate significant cost savings in the region of 5-20% with a bespoke savings program created and delivered as part of the program.
By outsourcing, you’re gaining expertise to help your organization make more informed decisions when recruiting driving a faster time to hire. Your MSP recruitment provider can support you to devise a strategy that ensures your brand is attracting the best talent in the market.
What are the benefits of MSPs?
There are many benefits to outsourcing your contingent workforce:
Cost Saving Program
Each client will have a bespoke cost-saving program to ensure a significant return on investment.
By outsourcing, you will have the confidence in robust processes and reduced risk to your business.
Your MSP provider should give you clear and precise visibility of spend to ensure you have an accurate picture of the cost of your contingent workforce.
Access to Top Talent
By appointing an MSP provider, you would gain access to their expertise and knowledge not just of our own Talent Centre where we deliver on average 92% of all contract roles directly, but and engaged supply chain managed by your dedicated account team members.
Data Management & Analytics
You don’t just receive month/quarterly dashboards, but we work in partnership with our clients to understand their trends and analyze how we can improve every day.
You will gain an MSP account team dedicated to your organization, but this can be flexible and reduced should your needs change.
Innovation & Technology
A great MSP partner will work with you to understand your organization and create bespoke service offerings to suit.
What does an MSP cost?
An MSP can be priced in various ways, but commonly you would find it in the following ways.
MSP Management fee / Transactional fee
This is where each month you would be charged a set fee for part of the service and customarily incorporated dedicated team members delivery set roles.
When this type of model is implemented, it spreads the risk allowing the provider to offer a slightly lower charge for the other elements of the service.
Fully Transactional fee
A transactional model is an increased risk to the MSP provider, but offers the end client confidence in not having to pay anything should no hires be made. This does, however, mean there is generally an increased charge for the services offered.
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