The right managed services provider/vendor management system (MSP/VMS) program can lead to significant advantages for your business in terms of addressing staffing needs and more effectively managing your non-employee workforce.
However, all MSP/VMS programs and providers are different. Building a complete understanding of MSPs starts with creating a foundation of knowledge around MSPs as a concept. Then, you can build on that base by focusing on the qualities that set dependable, effective MSP programs apart.
Let's start by taking a look at the key benefits of MSP/VMS programs as they relate to improving efficiency and visibility related to your contingent workforce. Then, we'll explore the crucial factors found in high-performing and consistent MSPs.
Important efficiency improvements driven by staffing MSPs
The basic intent of an MSP/VMS solution in the context of staffing is to coordinate the use and management of all non-employee staff, along with all of the suppliers that provide this type of worker. More specifically, MSP/VMS programs:
Bring every staffing company under one roof
One of the most common problems related to talent acquisition and the effective use of a contingent workforce is the overall complexity of vendor management. Once businesses expand beyond a few vendors for increasing their non-employee headcount, oversight quickly becomes complicated.
A dependable MSP offers your company an easier and more effective approach to vendor management. Every staffing supplier will work through the same terms and conditions implemented as part of the MSP/VMS program, standardizing processes and making important details more clear. Internal staff no longer have to dedicate valuable time to managing a need that's especially important, but not immediately connected to their skills or core job function. Instead, knowledgeable specialists take on these important tasks on your behalf.
Provide a single point of contact for every stakeholder
Working with too wide a range of vendors can lead to unnecessary complexity and time-consuming communication between suppliers, hiring managers and contractors. Keeping management simple through a managed service reduces inefficiency and provides a greater business focus for your key staff members. Program efficiency is achieved when the MSP's dedicated program management office handles questions coming from all sides: talent, supplier and hiring manager.
Partnering with an MSP provider means there is just one point of contact for all. Critical information is quickly passed along and shared as the MSP/VMS program's team handles all the communication details.
Strategically deploy requisitions to your supplier community
Your organization benefits greatly when only the best possible vendors supply talent for specific non-employee headcount needs. A high-performing staffing MSP/VMS program identifies each staffing agency based on its unique talent provision qualities.
To source a dependable contractor or freelancer, the MSP will typically work with the specific vendors who have been pre-identified as efficient and effective sources of talent in the specific category related to the need or job function in question. These quality and speed factors are closely monitored by the MSP partner to ensure that you have the strongest partners working on the right roles at the right time. This eliminates the inefficiencies associated with reviewing candidates that are unqualified from the beginning and rewards the vendor population as they become more successful in identifying best-matched candidates sooner.
Serve as an extension of your own HR department
Your company is a client of the MSP/VMS program provider you select. That means you should expect a strategic partnership that takes short-term needs and long-term improvement into account, with an overall focus on helping your business become more efficient at each level.
With the assistance of a committed and focused MSP/VMS program provider, your company could:
- Allow HR staff to focus on hiring full-time, mission-critical talent procurement while the MSP handles the recruitment of short-term, project-dependent workers.
- Reconfigure your workforce mix and/or establish a more robust temporary-to-permanent method to attract staff with key skills in more competitive areas.
- More confidently implement a relevant and effective remote workforce model.
A top-level MSP/VMS program will capably and consistently address major needs related to staffing beyond merely managing interactions and requisitioning talent. Partnering with Beacon Hill means we address all issues related to compliance and engagement for every contingent worker.
Identifying truly effective staffing MSP partners
No two MSP/VMS programs are completely alike. A successful MSP/VMS program should be highly customized to your specific organization's goals and needs.
With so many potential partners on the market, it's vital that your organization selects a service provider who can balance efficiency and effectiveness to create sustainable, meaningful and positive results. Truly great MSP/VMS program providers:
Won't alienate staffing suppliers and other stakeholders
Some MSP program partners require the immediate transition of talent from existing vendors into their own systems in an effort to streamline contingent workforce management. While this strategy may boost short-term efficiency, it will quickly alienate suppliers and talent currently on assignment who are critical to your business.
"It is so important that your MSP works with you to ensure that key suppliers remain engaged and active in your new program," said John Williams, Executive Director of Beacon Hill Solutions. "An MSP should look at these suppliers as true partners to ensure they are engaged and dedicated."
Make sure any MSP/VMS program your company considers supports all stakeholders, including vendors and contingent workers. The ultimate goal is to improve the existing, long-lasting relationships a company has with its supply chain partners, ensuring your company has a more effective way to access relevant talent to bolster the in-house workforce.
Focus on the best and most relevant suppliers for each open requisition
An open requisition shouldn't be an all-points bulletin sent out to every supplier. With a more targeted approach, it's possible to keep the oversight from your own internal staff limited to a reasonable grouping and improve the quality of the submitted candidates. Contacting too many active talent suppliers has a number of negative outcomes, including:
- Requiring decision-makers within your company to review an excessive number of poorly-matched submissions.
- Discouraging staffing vendors from sending quality candidates, thereby diluting your talent pool. When your suppliers know that they are far from the only vendor to participate in a requisition, they are more likely to not submit any candidates or simply offer the first candidate that meets minimum qualifications.
"Think about it this way: If the MSP sends out your job to 15 different suppliers, it becomes solely a race against time," said Kathleen Keliher, Managing Director of Beacon Hill's Solutions Division. "Many suppliers will either not waste their time working on it or may throw a few resumes against the wall to see if something sticks. Instead, MSPs should be focused on working with a select few suppliers by skill category. By emphasizing cultural fit, a strong MSP can focus on quality over quantity and speed without overwhelming volume, leading to better outcomes for their clients."
Selecting the MSP partner that's right for your needs
With this guide in hand, your company can more confidently seek out an exceptional MSP program partner. Understanding both the basic benefits and more advanced differences in strategy between MSP/VMS programs means a more holistic view of this valuable and complex service.
Learn more about what sets Beacon Hill apart as a dependable, efficient and effective MSP/VMS program partner.