Does your organization employ a high volume of contingent workers? If so, a Managed Service Provider (MSP) can offer significant advantages. An MSP is an outsourced provider that manages either all or part of the contingent worker recruitment for an organization, delivering substantial cost savings and process improvements.
In today’s market, it can be difficult to keep track of all the different laws across jurisdictions, payment processes, and other complicated employment operational tasks. An MSP can manage the entire contingent labor life cycle from requisition through invoicing and payment, leaving your HR team free to focus on core competencies and internal employees.
Consider these five benefits of using managed staffing services:
One: Save Costs
Are your costs rising because your organization doesn’t have a cohesive process for hiring temporary workers? Perhaps you scrambled to find qualified workers during the height of the pandemic, and now you aren’t sure you’re paying the best rates. Managing contingent workers isn’t cheap and keeping up with all the different costs can add up quickly.
When your organization uses a high volume of temporary workers from multiple staffing companies, it can be difficult to pinpoint where you’re losing money.
Count on an MSP to reduce costs by:
Providing strategic solutions
An MSP is well-versed in its field, providing strategic solutions to keep costs low. They work with multiple vendors and are aware of the market rates. Their insight into the market incentivizes vendors to keep talent costs low, leveling the playing field level for companies like yours.
Improving communication
An MSP is a centralized hub for managing contingent workers, creating clear communication channels, and reducing costly inefficiencies. An experienced MSP can streamline processes, providing consistency across departments and roles.
Reducing onboarding costs
Onboarding and training costs decrease when you partner with an MSP who offers those services.
Delivering advanced technology
Most MSPs can provide superior analytics through Vendor Management System (VMS), software designed to track and report key data on your contingent workforce. This information can be used to cut costs and manage vendor performance.
A VMS can provide insight into:
- Supplier management
- Headcount tracking
- Order distribution
- Consolidated billing
- And more
Two: Risk Mitigation
Keeping track of ever-changing labor and employment laws can be difficult – especially if your company operates in multiple states. Should your contract worker in North Carolina get more PTO than your temp-to-hire employee in Georgia? It’s essential to know compliance standards in every area you are doing business. Tax, labor regulation, contingent workforce legislation, and employment laws vary widely across states and counties. Your risk multiplies when you are hiring a high volume of temporary workers. It can be challenging for a staffing firm to keep track of it all.
The best course of action is often to let the experts guide you. By using managed staffing services, you’ll minimize risks, such as:
- Incorrect worker verification and credentialing
- Inaccurate reporting of income
- Mishandling of workers’ comp claims
Staffing MSPs can also help you negotiate the tricky waters of 1099 and independent contractor classification, ensuring no red flags are raised with the IRS.
Three: Better Quality Employees
Not having enough workers—and not having the right workers—is expensive. An MSP continuously evaluates your need for contingent workers and gets the right people in the right roles before your business comes to a screeching halt. Your managed staffing services provider has the experience to identify the best talent for your organization, ensuring a robust supply of qualified workers waiting in the wings.
By putting consistent sourcing and screening processes in place for your organization, an MSP will streamline your recruiting process, delivering good quality contingent workers that can have many benefits for your organization, including:
Improved retention
Retaining good employees is challenging these days. Working with an MSP can fill vacancies with qualified workers faster, keeping your core team happier, less stressed, and more likely to stay with the company. Your MSP will know how to keep your contingent workforce happy, too. They understand what motivates their workers and can provide benefits and bonuses tailored to appeal to their employees.
New sources of talent
Fishing in the same old talent pool and coming up with empty lines? Your employer brand may be incredible, but that doesn’t mean it will attract the contingent workers you need to adapt to rapidly changing demands in today’s market. Your MSP provider will have new sources of talent to mine and will know how to entice them to work with your organization.
Higher productivity
When you’re using multiple staffing vendors, they likely have different cultures, safety plans, and screening processes. Consolidating your temporary workforce through an MSP with consistent screening standards can help you employ a more cohesive, safer, and highly productive team.
Four: Increased flexibility and consistency
Recruiting has been incredibly challenging for the last several years, and now employers face the possibility that they may be overstaffed—something that seemed impossible only a few short months ago.
Because nothing is ever certain, employers must stay ready for anything. One way to prepare for the unexpected is by using the managed staffing services like those provided by D-1, you get support in developing a strategic plan that includes flexible staffing, long-term temps, temp-to-perm candidates, and other staffing services that help you maximize profits and productivity.
You’ll be able to relax and enjoy peace of mind when an MSP on-site management team offers 24-7 service and will help you stay ahead of any talent gaps or employment needs before critical staffing issues emerge.
Five: Single Point of Contact
An MSP acts as a single point of contact for temporary workers and employers, streamlining the communication process on both sides.
Communication Is Essential To Job Satisfaction For Many Contingent Workers
Imagine starting a new job and not knowing who will answer your questions—or worse, asking multiple people and never getting a straight answer! Using an MSP creates a single point of contact for temporary workers. Instead of getting the run around when they have questions, candidates can form a bond with one contact, ensuring they feel their concerns are being heard and addressed.
Your Managed Staffing Services Provider Knows Your Business
As a single point-of-contact for your staffing vendors, your MSP will become familiar with your business, delivering exceptional talent and handling any issues that arise. Instead of having to juggle invoices from multiple staffing companies, you’ll receive one invoice. When you have questions, they can usually be resolved with one phone call, saving valuable time. As your strategic workforce partner, an MSP will work to provide the best talent, streamline processes, and increase profitability for your organization.
Looking for a strategic staffing plan to help your company keep up with changing times? Partner with an MSP and leave all your worries behind. We’ll help you get ready—and stay ready—for anything.
Ready To Partner With A Top Staffing MSP?
If you are ready to partner with an MSP to manage your contingent workforce, partner with D-1 Managed Services, a division of Accurate Staffing. Contact us today to learn more about the ways we can help you streamline your workforce.