The workforce has changed dramatically, particularly since the Covid-19 pandemic. For a variety of reasons, more workers than ever are choosing flexible work, side hustles, and gigs over traditional 9 to 5 jobs.
Flexible working models also benefit employers who want to cost-effectively fill roles where demand fluctuates. Since a flexible workforce requires management, many employers are discovering a managed services provider (MSP) can more easily supply the contingent talent management they need for their organization.
How Can You Manage Your Workforce with an MSP?
What is an MSP in Staffing?
A managed services provider (MSP) is an external, outsourced company that handles various processes and functions for another company, such as:
- Contingent labor
- Human resources
- Vendor management
- Sourcing and procurement
- And more
An efficient MSP can cut costs while increasing the overall efficiency of your contingent workforce, allowing you to focus on core business functions. As your MSP, Anserteam serves as a single point of contact, managing your complete contingent labor program from sourcing through separation—and every step in between.
Contingent Workforce Trends
The contingent workforce is expected to continue growing. In the past, contingent work was often associated with unskilled workers. However, more than a third of independent contractors have a bachelor’s degree or higher, and an increasing number of professionals with in-demand skills are entering the contingent workforce. In particular, Millennial and Gen Z workers embrace flexibility in their work and often hold side jobs in addition to their primary careers.
Looking for contingent workforce management solutions?
Since 2004, Anserteam has been helping companies reduce costs, mitigate risks, and optimize contingent talent management. As a leading MSP in the staffing industry, we believe any size organization can streamline processes and save money. Let’s team up to create a custom workforce solution for your unique business challenges!
Why is an MSP Important for Your Contingent Workforce Program?
Partnering with an MSP can provide a cohesive, company-wide contingent workforce management solution for your organization, saving time and resources while providing benefits such as:
Access to Vendor Management Systems
Technology makes contingent talent management easier. An MSP will often have access to a vendor management system (VMS) that keeps track of sourcing, acquisition, management, and payment of your contingent workforce through one centralized database.
A VMS also makes job classifications precise by codifying job classifications and descriptions and ensuring that all roles are aligned to the correct job category and that the correct rate is assigned to each category. Precise job classification helps you maintain consistency in reporting and data analysis, which allows you to make cost-effective hiring decisions.
Anserteam prides itself on its technology-neutral vendor management solutions based on your budget, business needs, and goals. We’re happy to optimize your current VMS or recommend a solution based on your unique requirements.
Employer of Record (EOR) Payrolling Services
An employer of record—also known as a payroll service provider—is responsible for handling administrative details for employees that an employer identifies. Often these duties include:
- Employee wages
- Statutory taxes
- Benefits administration
- Applicable contributions to unemployment
- Workers’ compensation insurance
- Maintenance of records and reporting requirements
Engaging an MSP in the staffing industry to be your employer of record can help you:
- Save time. Outsourcing burdensome administrative tasks allow internal resources to focus on more valuable business objectives.
- Reduce costs. Many businesses do not have a set process for engaging and onboarding contingent staff. It’s more cost-effective to allow professionals familiar with the process to handle those tasks.
- Mitigate employment risk. The employer of record takes ownership of employee classification and can protect your organization from misclassification findings, as well as assume a portion of employment liability.
- Adapt to short-term hiring demands. Avoid the cost of onboarding and offboarding by engaging an EOR. As an added benefit, you can evaluate this talent and extend a direct offer of employment if the need for contingent labor remains high.
Enhanced Talent Acquisition Strategy
Every day you don’t have the right people on the job costs money. An MSP evaluates your need for contingent labor on an ongoing basis and gets the right people in place before productivity slows down—or halts. Working with a managed services provider ensures a pipeline of vetted prospects ready to go when you need them.
An MPS can also provide increased visibility and control over your labor spend. A single point of contact for vendors allows you to see exactly how much you are spending and where you are spending it, allowing you to eliminate inefficiencies and maximize your ROI.
Lower Recruitment Costs
Most managed service providers work with multiple suppliers in the industry, giving them insight into the most competitive labor rates for your organization. By consolidating your vendor management to a single point of contact, you can lower recruitment costs while ensuring your offer is competitive in the current marketplace.
Every step of the recruitment process generates costs. Working with an MSP can streamline and standardize processes across every touchpoint, creating efficiencies and reducing costs for your organization.
Independent Contractor Compliance
An increasing number of workers prefer the flexibility of independent contracting, but compliance can be tricky, especially if you are dealing with multiple states. MSP’s are 1099 and independent contractor compliance experts, helping you avoid misclassification flags from the IRS or other agencies and streamlining the procurement and payment process.
Non-permanent employees are subject to different rules and regulations than permanent employees. Partnering with a managed service provider can help your organization manage risks, such as:
- Incorrect worker credentialing and verification
- inaccurate reporting of incomes to the IRS
- Mishandling of workers’ compensation claims
- Failing to understand co-employment rules and regulations
For Contingent Workforce Management Solutions Partner with Anserteam Today.
We’re the team behind great teams. Managing a contingent workforce solution is a complex process with many intricate steps. We offer streamlined and automated solutions to reduce administrative burden, provide consistency, increase productivity, and reduce costs. Our experts not only implement those solutions, but they also offer strategic analysis and recommendations to further improve them down the line. Our consultative approach puts you in the driver’s seat while we make the journey easy for you. Let’s team up! We provide exceptional services nationwide with headquarters in Dallas, TX. Contact Anserteam today.