Businesses, no matter their industry sector, spend an inordinate amount of time trying to source and hire talent. These staffing processes are known to be costly and risk-prone, especially at smaller organizations without a large HR department. In fact, many companies undertake these hiring efforts and find that many ultimately result in failure.
For many companies, partnering with a managed service provider in staffing offers an opportunity to optimize their hiring process. This approach helps these businesses save money while boosting their chances of hiring the right candidate. After all, staffing MSPs specialize in recruiting, letting their client partners focus on managing their business. As such, they provide similar benefits to organizations as other managed service providers in information technology.
So let’s take a closer look at the concept of managed service providers in the area of staffing. We cover the significant benefits they offer to businesses of all sizes, including ones lacking HR resources. Use this information to craft a staffing strategy that helps your business reduce costs while boosting its operational efficiency. After all, your competition might be adopting a similar approach.
What are Managed Service Providers in Staffing?
As noted earlier, businesses leverage managed service providers to effectively outsource any number of internal corporate functions. We highlighted the fact that MSPs tend to be popular in the technology world. Companies rely on these providers to manage Cloud-based infrastructures, databases, and even software applications.
Many technology MSPs saw their clients quickly transitioning to remote working during the COVID-19 pandemic, highlighting one important benefit. Businesses with on-premises data centers found it more difficult to maintain productivity levels with a remote staff. MSPs in staffing provide similar advantages to modern companies’ hiring processes. Outsourcing your company’s staffing role to experts in the field allows your company to optimize its talent acquisition efforts.
Like their tech industry cousins, staffing MSPs offer their clients with significant benefits. A managed service provider in staffing provides businesses with previously vetted candidates ready to make a positive impact. This effectively streamlines the staffing process, while also reducing the inherent risks whenever trying to hire talent.
Remember, despite rumors of a recession, the current job market still favors candidates. When trying to find qualified talent on its own, your company generally spends significant time and resources. If this effort results in failure, all those expenses effectively become sunk costs. Partnering with an MSP staffing company needs to be considered by any business with regular hiring needs. Once again, organizations with small HR teams also benefit from this approach.
How Much Does a Staffing MSP Cost?
Note that partnering with a managed service provider in staffing offers significant cost savings to companies. We already mentioned the significant costs and risks of engaging your company’s internal staffing process. Simply eliminating that risk helps it enjoy a better ROI on its staffing spend. Your company also enjoys improved productivity with managers not wasting their time conducting multiple rounds of interviews!
Your business typically pays a recurring fee to its staffing MSP partner, providing cost certainty to the staffing process. The ultimate amount of this fee depends on the level of service provided by the MSP. Depending on its needs, your business might opt for a fixed rate or a variable pricing strategy.
Determine the final cost by multiplying this rate by the hours the MSP team works over a certain period. Note that the number of hours worked by an MSP in staffing may also be fixed or variable. This pricing approach offers a measure of flexibility to any business. It also provides the ability to easily scale the size of your team as needed.
When researching potential staffing MSP partners, ask for proposals from multiple providers, allowing you to compare rates. In addition to the base fee for staffing services, some staffing providers also charge a technology fee. Additionally, an “onboarding” fee for new clients might also be charged. Consider these extra costs before making a final decision on which managed staffing services provider becomes your partner.
The Benefits of MSPs in Staffing
Let’s detail a few of the major benefits of partnering with an MSP in staffing that go beyond cost savings. Remember the reduction in expenses gained by improved productivity and lower risk when working with a staffing MSP? Expect to gain other meaningful advantages when adopting this staffing approach.
These additional benefits let you find talented professionals more easily or help your business maintain its regulatory compliance. The latter case especially matters if you want to take advantage of a contingent workforce. That staffing strategy also offers significant cost savings to businesses compared to always hiring full-time employees.
Use these benefits as food for thought if still deciding on a partnership with a staffing MSP. When you combine these advantages with saving money, the decision ultimately becomes easier.
MSPs in Staffing Improve Program Visibility
Managing an internal staffing process remains difficult for any business, especially those without a large HR team. Working with a staffing MSP provides your leadership with the critical metrics to analyze the effectiveness of the program. You gain visibility into your current staffing spending level, the time to fill open positions, and quality of placement.
These and other useful data points help managers track the entire staffing process, informing any future hiring plans. Since the best staffing MSPs are experts in this field, they know what metrics work best for your analytics. Leverage their insights to forge a more efficient and effective staffing process.
MSPs Mitigate Contingent Workforce Risks and Compliance
If your business already leverages the benefits of a contingent workforce, you understand the importance of regulatory compliance. No business wants to deal with potential fines and tax penalties for a failure to comply. This scenario remains an important reason why partnering with an experienced staffing MSP makes perfect sense.
Managed staffing service providers boast useful experience when it comes to dealing with a complex array of laws. This knowledge base provides some peace of mind to your organization related to staying on the right side of regulations. It especially matters if your contingent workforce resides in multiple states with their own unique laws.
Find Better Talent with a Staffing MSP
As experts in talent acquisition, partnering with a staffing MSP ultimately improves the quality of your candidate pool. Additionally, they help with any short-term needs like closing a skills gap on an important project. Trying to source technology professionals with skills in machine learning or cybersecurity remains costly and difficult. Partnering with an MSP staffing company remains a wise choice for sourcing the specific talent your organization needs.
How to Choose a Managed Service Provider in the Staffing Industry
Understanding the benefits gained from a staffing MSP partnership helps drive your company’s decision-making efforts. So now let’s look at a few strategies for choosing one as a partner. You need a detailed analytical process not dissimilar to deciding between two excellent candidates for your open position. A data-driven approach ultimately results in your team making the right choice.
Evaluate the VMS Implementation Time
You want to partner with a staffing MSP to access talent as quickly as possible. So make sure you frame a few questions on the topic when vetting different providers. This includes the implementation time for the vendor management system used by the MSP. After all, if it takes 2-3 months to go live, your business might struggle finding talent in the interim.
Your chosen provider needs to work with your internal stakeholders to manage any onboarding issues. This includes potentially migrating any vendor data from your existing supplier base into the staffing MSP’s new system.
Determine the Staffing MSPs Ability to Match Specific Talent Needs
As noted earlier, sometimes your business needs to quickly fill a specific hiring need. Your chosen MSP partner needs to fully understand the typical candidates your organization hires. This issue becomes especially important when considering the complex job requirements in technology.
For example, when needing candidates with experience training machine learning models, be sure your MSP understands the underlying technology. This approach ensures they provide the talent that truly meets your business requirements, including soft skills.
How is Staffing MSP Performance Measured?
As highlighted earlier, tracking the performance of your staffing MSP ensures you enjoy a strong ROI. So be sure to frame a few questions on the metrics provided by the MSP. Once again, look for data on time to hire, quality of candidate, and overall efficiency.
After choosing an MSP staffing company, work with them to determine any other KPIs to measure performance. Working together on this task helps build trust between your organization and its new staffing vendor.
Partner with the Top MSP in Staffing Today
When looking for an experienced staffing MSP, connect with the experts at Anserteam. As one of the top managed service providers in Texas, we help optimize your organization’s hiring process. Schedule a meeting with us to discuss your current and future staffing needs.