7 Myths People Believe About Workforce Managed Service Providers

In the ever-changing world of workforce management, Managed Service Providers (MSPs) operate as a dynamic partner to help companies revolutionize their operations, simplify processes and boost overall productivity. Despite their impact today, several things need to be clarified about the role and advantages of MSPs. Let's debunk five prevalent myths surrounding Managed Service Providers:

Myth #1: “I can’t use a Managed Service Provider since my contingent workforce is too small.”

This is a common misconception prevalent among organizations today and has been since MSP providers entered the workforce management scene. Many believe only large corporations with extensive contingent labor utilization can benefit from an MSP solution. While it is true that some MSP providers do not cater to smaller clients, OneBeacon is different! We are a premier partner for smaller and mid-sized MSP programs and specialize in providing first and next-generation solutions for clients who may think their workforces need to be bigger. Moreover, we tailor our solutions to fit organizations of all sizes by leveraging our workforce experts, proven processes and industry-leading technology.

Regardless of your company’s scale, a proper MSP can enhance your contingent workforce management, providing cost savings, compliance assurance, and access to top talent, instilling confidence in our expertise and ability to cater to your needs.

Myth #2: “An MSP implementation will require lots of time and internal resources to implement, and we have other projects at the moment.”

Delaying MSP implementation due to ongoing projects can hinder progress. Many companies must pay more attention to the effort needed to manage a contingent workforce effectively.

The right MSP provider will handle most of the workload and oversee change management, relieving the client from significant time commitments. While clients often see this as a hurdle that competes with other projects, a competent MSP assumes most responsibilities. The resulting benefits, efficiencies and time savings far exceed the initial time investment, providing a sense of reassurance and relief.

Implementing an MSP now can be transformative. MSPs like OneBeacon specialize in streamlining hiring and compliance, saving clients time and hassle by managing implementation complexities and allowing your team to focus on core projects and priorities.

Myth #3: “Moving to an MSP solution would result in losing the ability to work with some of our longstanding suppliers.”

One common misconception is that current suppliers may not agree to join the new MSP program or that hiring managers can no longer work with their favorite or top-performing suppliers. However, as best practice when implementing a new program, MSPs like OneBeacon will include as many of the client’s current high-performing suppliers in the latest contingent workforce program. This approach bolsters engagement with current suppliers and ensures successful change management.

Furthermore, MSPs like OneBeacon understand the value of maintaining strong relationships with existing suppliers. They typically prioritize integrating these suppliers into the new program to ensure continuity and minimize disruption of client operations. By fostering collaboration and transparent communication throughout the transition, MSPs can effectively retain the expertise and quality service longstanding suppliers provide. This strategic approach preserves productive partnerships and allows hiring managers to leverage their preferred suppliers’ skills and resources within the MSP solution’s framework. Ultimately, this collaborative effort aims to enhance overall efficiency and satisfaction across the contingent workforce management process.

Myth #4: “We don’t need an MSP, just a Vendor Management System.”

While a Vendor Management System (VMS) is undoubtedly valuable for tracking and managing contingent labor, it is just one piece of the puzzle. An MSP partner adds significant value beyond the technology itself. After implementing the VMS, an MSP provides a dedicated team of experts with years of experience to ensure smooth integration and ongoing management of the tool. This team offers hiring managers and workers high-touch support, ensuring effective communication and issue resolution. Additionally, the MSP contributes continuous improvement practices, which help adapt to new regulations and optimize the system’s performance. They also play a crucial role in reducing co-employment risk through proper workforce classification and change management, setting you and your stakeholders up for long-term success. Proper management of non-employee headcount involves much more than just having the right tool; it requires the expertise and support an MSP provides to keep your VMS current, compliant, and effective.

Additionally, an MSP will offer the expertise of working with each VMS system through other client engagements. This results in efficiencies gained as the MSP program navigates the everyday ins and outs of the system with ease and can also lead to a better user experience for all client hiring managers as the program and implementation teams can provide comprehensive training for them on how to use the system, enter a requisition, approve a worker timesheet, etc. The program team’s personalized and efficient approach, combined with their years of VMS experience, makes it essential for your organization to partner with MSPs like OneBeacon. Our workforce experts can assist you in choosing and implementing the right VMS for your workforce and, ultimately, deliver a best-in-class solution to manage your program.

Myth #5: “We can effectively manage our workforce program internally; an MSP isn’t unnecessary.”

When managing a workforce with many moving parts, such as contingent workers, freelancers, payrollees, SOW and full-time employees, attempting to handle everything independently can quickly lead to chaos. Companies can quickly become overwhelmed trying to source the right talent, track and report workforce data, maintain compliance and control costs. This is undeniably challenging, and most companies need to be equipped to handle it independently.

This is where an MSP can step in and immediately add value. As experts in workforce management, MSPs like OneBeacon possess the expertise, technological capabilities and industry connections to handle all aspects seamlessly. Overall, outsourcing the management of your workforce to an MSP isn’t a sign of weakness at all. It’s a prudent decision that can save your organization time, money and the stress of managing it all internally.

Myth #6: “We don’t have the budget to hire an MSP.”

Many companies hesitate to engage MSPs due to budget concerns. However, a viable solution exists in the industry best practice of the supplier/vendor-funded model. Suppliers embrace this approach for additional benefits, including business growth opportunities, reduced administrative burdens and access to other programs.

In this model, suppliers pay a small, industry-standard fee when their temporary employees are selected for work. This program management fee is deducted each pay period based on hours worked and billed through the VMS until the assignment concludes, allowing businesses to access MSP services without financial burdens.

Additionally, OneBeacon’s MSP program includes a scalable onsite management team, initial implementation and comprehensive services like customized reporting, all of which are covered without additional charges.

By embracing the supplier/vendor-funded model, companies can overcome budget constraints and gain strategic advantages that enhance growth and competitiveness in the market.

Myth #7: "To achieve our diversity goals, we must partner with a diverse-owned MSP."

Within diversity, equity, inclusion and belonging (DEIB) efforts, the belief that partnering only with a diverse-owned MSP is necessary to achieve diversity goals is a common misconception. While MSPs should certainly value diversity as a cornerstone of a well-rounded DEIB approach, diversity ownership alone does not guarantee an MSP’s ability to support a client’s diverse supplier and talent initiatives. Additionally, choosing an MSP partner based solely on diversity ownership status overlooks the crucial aspect of strategic alignment with DEIB goals.

By engaging with an MSP like OneBeacon, clients benefit from a transparent process where every financial allocation is meticulously managed to ensure alignment with their diversity strategies, whether in supplier diversity or talent acquisition. Our DEIB commitment goes beyond surface-level metrics to deliver meaningful, measurable outcomes that resonate with the evolving landscape of diversity in business. OneBeacon’s commitment to DEIB extends beyond ownership metrics to encompass complete transparency and accountability in every dollar in our MSP programs spent toward our clients’ diverse objectives. OneBeacon fosters an inclusive ecosystem that reflects our client’s diverse needs and aspirations.

OneBeacon works diligently and strategically with our clients to help them achieve their diverse, small, and disadvantaged utilization goals. Using our clients’ specific targets, we design a customized supplier utilization plan to meet their diversity goals. Supporting minority-, disability- and women-owned business enterprises is part of our ongoing business strategy, and we are confident in our ability to support and exceed our client’s goals with certified diverse suppliers. Our program managers are committed to implementing supplier management programs that attract some of the country’s most innovative and driven diverse-owned businesses to participate in our MSP programs.

Myths = debunked

In conclusion, Managed Service Providers are crucial to your non-employee workforce management. By dispelling myths and embracing their value, organizations can unlock opportunities for growth and success. If you would like to hear more about how OneBeacon’s MSP solution can further grow your business and unlock your workforce’s potential, reach out to me directly at [email protected] or by phone at (617) 826-3971.