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Businesses in multiple industries leverage managed service providers (MSP) to handle various internal processes and functions. The advent of Cloud Computing led to many technology-related MSPs entering the field, managing pieces of their clients’ technical infrastructures. Software as a Service (SaaS) and Infrastructure as a Service (IaaS) provide two examples of this approach.
Managed service providers in staffing also exist, helping companies with their talent acquisition and contingent workforce management needs. The benefits of this approach remain numerous, especially for businesses with small HR teams. Company leadership benefits from focusing on running their business, as opposed to managing a risky staffing process. Let’s further examine staffing MSPs and the benefits they offer organizations of all sizes, including yours!
Introduction to Managed Service Providers (MSP)
As highlighted above, MSPs provide a specific service to their business clients. Adopting this approach helps companies save money, improve their budgeting efforts, and focus more on managing their organization. Most of these services are typically delivered using the Cloud, as well as other channels.
The growth of the MSP concept originated in the technology world, as noted earlier. Businesses use technical MSPs to manage software, network infrastructures, databases, and so much more. Adopting this strategy allowed many organizations to shed costly on-premise data centers and server farms.
Businesses save money letting the experts handle these parts of their technology footprint. This approach allows company leadership to focus on managing the business, as noted earlier. It leads to a healthier balance sheet as well as fostering growth and business success.
The Role of Managed Service Providers in Staffing
Staffing MSPs effectively modularize expensive and costly staffing processes for their clients. These companies boast well-honed and efficient processes for sourcing, screening, and onboarding talent. As a result, the find candidates in a faster and more cost-effective manner compared to any internal staffing process.
Managed staffing service providers especially help businesses with a large number of contractors and temporary professionals. Their contingent workforce management services leverage modern vendor management systems to optimize client operations. This strategy ultimately helps MSP clients improve efficiency and their subsequent profitability.
An MSP in staffing takes the time to understand their clients’ operational approach and company culture. When presented with a talent need, they quickly find professionals with the right skills, experience, and cultural fit. Their clients focus on running their business, with the knowledge their talent needs are managed by industry experts.
Key Benefits of Partnering with Managed Service Providers
Now, let’s examine some of the most important benefits of a staffing MSP partnership. Use these insights to differentiate between different managed staffing service providers. It ultimately helps you make the right decision on an MSP partner.
Streamlined Contingent Workforce Management
As noted earlier, the top staffing MSPs serve as experts in the process of contingent workforce management. This especially helps when your company must quickly add professionals to meet seasonal demands or finish a critical project. Their talent acquisition approach is simply much faster and more effective compared to your internal staffing processes.
These managed staffing providers also handle everything from analyzing résumés to ensuring tax and payroll compliance. Considering the differences in tax laws, this becomes especially beneficial for businesses with locations in multiple states.
Enhanced Efficiency with Vendor Management Systems
A modern vendor management system (VMS) remains a critical piece for top-shelf staffing MSPs. These tools – typically Cloud-based – help manage talent suppliers, ensuring a diverse and talented candidate pool. They also provide your company leaders with visibility into your entire contingent workforce.
Strong reporting and analytical capabilities also inform your internal managerial and planning processes. It plays a key role in improving or maintaining your company’s operational efficiency.
Cost Savings and Improved Budgetary Control
Simply stated, a partnership with a staffing MSP offers your business the opportunity for significant cost savings. This is especially the case when compared with an expensive and risk-prone internal staffing process. Reducing the risks and extra costs of a hiring mistake definitely helps your balance sheet.
Additionally, expect more control over your corporate budgeting process. The strong reporting and data analytics capabilities of a VMS help plot a course to long-term success.
Access to a Broad Network of Talent
Experienced staffing MSPs boast large candidate pools, making them the perfect partner for businesses with contingent talent needs. We already mentioned how leveraging a top-shelf vendor management system helps with building and maintaining these talent networks.
The bottom line remains simple. Fast access to contingent talent helps businesses stay nimble, with the ability to quickly scale their headcount. This just might be the most critical benefit gained by a partnership with a managed staffing services provider.
Compliance and Risk Mitigation
We previously noted businesses with locations in multiple regions struggle with compliance with labor laws affecting their contingent workforce. The risks of fines and tax penalties require this issue to be a major focus at these organizations. However, this task tends to overburden companies with small HR teams.
Partnering with a staffing MSP serves to alleviate these concerns. Simply stated, these firms boast a deep understanding of labor laws across all jurisdictions of their clients.
Scalability and Flexibility in Workforce Solutions
We already talked about the importance of partnering with staffing MSPs with large talent networks. Once again, it helps provide their clients with the scalability they need for success. Challenging projects or sudden periods of high workloads simply become easier to manage.
The best managed staffing companies offer their clients a variety of workforce solutions. This flexibility helps these businesses foster new growth, leading to long-term success.
Strategic Insights and Reporting with MSPs
Once again, vendor management systems help staffing MSPs provide clients with useful data analytics and reporting functionality. As a result, they glean the actionable insights necessary to thrive in a constantly evolving business world. These largely Cloud-based applications also leverage AI and machine learning to power their analytical engines.
Having this information at your fingertips remains an important part of successfully managing a business with a contingent workforce. When vetting potential staffing MSPs, ask pointed questions about their reporting and data analysis services.
Gaining a Competitive Edge with Managed Service Providers
Now, let’s examine a few benefits offered by a staffing MSP partnership helping businesses successfully compete in today’s economy. Leverage this information for additional insights when comparing potential MSP partners. In short, make sure your chosen managed staffing services provider offers these benefits.
Accelerated Hiring and Onboarding Processes
As highlighted earlier, the top staffing MSPs have large candidate pools, reducing your company’s time-to-hire when hiring contractors. Also contributing to this accelerated hiring are well-honed processes for sourcing and onboarding talent. Having fast access to the professionals you need remains an important competitive differentiator for your business.
Notably, leading managed staffing service providers also leverage modern applicant tracking systems (ATS) to optimize hiring efforts. These tools are powered by AI, automating the process of résumé analysis and candidate matching. This ensures you quickly find the right talent for your hiring needs.
Proactive Talent Acquisition and Retention Strategies
The best MSPs in staffing also understand the importance of effective strategies for finding and retaining talented professionals. Their recruiters boast exceptional people skills, helping to sell both the staffing MSP and your business to potential contractors. A sterling reputation in the industry also serves to attract the talent companies like yours want.
At the same time, they understand cultural fit plays a key role in employee retention. As such, they source professionals compatible with their company culture and present candidates with a similar fit with your business.
Leveraging Industry Expertise for Strategic Advantage
An experienced staffing MSP also boasts relevant expertise in multiple industries. They understand the latest market and economic trends, informing their strategic approach. A partnership lets you focus on managing your business, while your staffing MSP provides advice on industry changes. As such, partnering with a staffing provider with experience in your business sector makes perfect sense.
How to Choose the Right Managed Service Provider for Your Business
When deciding on a compatible staffing MSP for your business, certain criteria remain critical. We just mentioned the importance of partnering with one with significant experience in your industry. Of course, their technology approach also remainss important, especially considering their vendor management system and applicant tracking software.
Finally, you want a partner that’s aligned with your business goals and deeply understands your company culture. Ask detailed questions on all these topics when vetting potential partners.
Unlocking Business Potential with Managed Service Providers
In the end, partnering with a staffing MSP offers significant benefits to any business, especially those with a contingent workforce. They reduce time-to-hire while saving costs, providing companies with the scalability they need for success.
The best agencies also leverage modern tools for contingent workforce management as well as industry-best vendor management systems. As a result, expect the insights you need to make data-driven decisions. An MSP partnership remains the right strategy for building and maintaining a successful organization.
Partner with the leading Managed Service Provider – Anserteam!
When searching for a top-shelf staffing MSP, look no further than Anserteam. Schedule a Meeting with us to discuss your contingent workforce hiring needs and how we can help!
