Using contingent labor to bolster your workforce is nothing new. For years, companies in industries of all sorts have been using freelancers, contractors, and other sorts of contingent workers to meet client demands, achieve organizational objectives, and grow.
Managing a contingent labor workforce, especially a large one, isn’t easy. And often, companies don’t have the resources or time to do it. That’s where managed service provider solutions (MSP) come in.
What exactly is an MSP?
A managed services provider is an external company that handles processes and functions related to contingent labor on behalf of a company. An MSP operates as an external arm of your company and manages the end-to-end lifecycle of your contingent workforce needs. And since contingent labor management can be quite complex, having it managed externally is a great option for many companies employing a contingent workforce.
What are the benefits of an MSP?
How can it help with the current labor shortages we’re seeing? Let’s dive deeper into the world of contingent labor staffing solutions and find out how beneficial MSPs can be for companies of all shapes and sizes.
How a Managed Service Provider Can Limit Labor Shortages
With The Great Resignation in full swing, industries of all sorts are seeing labor shortages like never before. And partnering with an MSP can help with that. MSP staffing companies typically work with extensive talent networks, meaning they have a large pool of freelancers and/or contractors to pull from for your business’s needs. When you need extra help, perhaps during a busy season or for a special project or new initiative, an MSP can source and supply the talent you need, fast. In this way, MSPs can be a crucial extension of your existing workforce as you continue to navigate labor shortage challenges.
Another great thing about MSPs as they relate to labor shortages is that partnering with an MSP lets you stay agile. It’s one of the great things about contingent labor in general: You can scale up to meet current demand, always be prepared to overcome fluctuating industry or market conditions, and scale down as necessary. Having that talent pipeline at your disposal when you need it, along with the ability to scale back when you don’t, is a great way to meet objectives without wasting time, money, and resources.
MSP Contributions to Contingent Workforce Solutions
We’ve learned that MSPs help with labor shortage challenges and let your business stay agile to meet fluctuating demands. Contingent workforce management solutions have other benefits, too: You’ll gain access to a vendor management system (VMS), enjoy a better talent pool to choose from, and have procurement and sourcing taken care of for you.
Access to a VMS
Managing a contingent workforce is nearly impossible without the aid of a vendor management system, or VMS. This is a technological system that supports the sourcing, talent acquisition, management, payment, and more in one centralized database. The benefits of using a VMS are well-documented; systems like these help companies to gain insight into and control over the processes used to obtain contract labor, ultimately leading to more efficiency, better compliance, and cost savings.
When you partner with an MSP, you’ll gain access to a VMS automatically. It’s a great benefit of relying on contingent workforce management solutions for your augmented staffing needs.
Enhanced Talent Acquisition Pool
As explained above, MSPs work with a wide range of talent and have an extensive network from which to draw talent. That means you’re getting the best of the best to add to your workforce, and you’ll be able to strategically acquire top talent before your competitors can get to them.
Another benefit of the enhanced talent acquisition pool: It boosts your company’s image among contingent workers, both those that already work for you as a part of the MSP program and those outside of it. Quality talent tends to draw more quality talent—when you’re known as the best employer for freelancers and contractors, you’ll start seeing more interest from great people.
Procurement and Sourcing
Talent procurement and sourcing will improve when you utilize a managed service provider solution. This is due to all the reasons described above; access to a wide range of top talent, improved reputation among the contingent workforce, and access to a VMS system that lets you gain visibility and transparency into your contingent workforce strategy. Plus, it’s a significant cost saving. An MSP will save you money on all sorts of aspects of your contingent workforce management, including finding the best bang-for-buck employees and freeing up your existing HR staff to focus on more valuable objectives.
Contingent Labor Industries That Can Benefit from a Managed Service Provider
There are plenty of industries that can enjoy the benefits that a contingent workforce managed by an MSP provides. Let’s focus on just three: facilities management and hospitality staffing, IT staffing, and manufacturing staffing.
Facilities Management and Hospitality Staffing
The events and hospitality industry has had a tough few years thanks to the pandemic. With things changing on a constant basis, the ability to have agile, flexible staffing is more important than ever in the world of facilities management and hospitality. An MSP can provide that, allowing businesses to scale up or down as necessary and employ contingent labor for peak times or whenever needed.
Information Technology Staffing
Many companies need a large information technology workforce for special projects or busy seasons, perhaps during the holidays or when implementing a company-wide system overhaul. An MSP can provide the talented, experienced IT professionals your organization needs without you having to source and hire them yourself. That allows you to scale up your IT department when needed and scale down when the demand drops. From IT analysts and network specialists to IT supervisors and more, and MSP can source the professionals your company needs when you need them.
Manufacturing Staffing Suppliers
Take a look at the news lately and you’re sure to see a story about supply chain shortages and the way it’s affecting the manufacturing sector. Supply chain issues combined with staffing shortages have made things very difficult in recent times for this industry. And that’s why contingent labor staffing solutions can be such a big help.
A managed service provider can find manufacturing operations the experienced staff they need, from assemblers and packers to warehouse managers and logistics coordinators. That means operational deadlines are met, costs are saved, and production keeps rolling to keep customers happy.
Improve Your Contingent Hiring Strategy With an MSP
Have you considered utilizing the services of an MSP to manage your contingent workforce needs? Remember, the benefits of using such a service are widespread and include:
- Cost savings – find inexpensive and talented contingent labor, and free up your core team to focus on operational objectives
- Increased efficiency – save time and resources by employing contingent labor and having the entire program managed externally
- Access to a broad talent pool – take advantage of the MSP’s wide talent pool to find quality contingent workers before your competitors
- Flexibility – scale up your contingent workforce when you need to, and scale down to save costs when the demand dies down
Learn More by Contacting Anserteam’s Workforce Solutions Team Today
Want to learn more about managed service provider staffing solutions? Interested in exploring these options for your organization? Contact the professionals at Anserteam. Our MSP programs simplify and streamline your contingent workforce strategy; we are your consultative partner end-to-end, managing your entire contingent labor program. We’ll recruit, vet, onboard, evaluate, and manage all staff, and we’ll take care of compliance and risk mitigation as well.
Contact a member of our team today to get started. We look forward to helping your company achieve success through the power of contingent labor staffing solutions.