Table of Contents
- 1 1. Better overall visibility
- 2 2. Risk reduction and compliance
- 3 3. Access to the best talents
- 4 4. An efficient supply chain
- 5 5. Employer brand expertise
- 6 6. Predictive analytics and data management
- 7 7. More flexibility and adaptability
- 8 8. Innovative technologies and practices
- 9 The many advantages of MSP
As digitization and globalization continue to be at the heart of business strategies, you are undoubtedly, like many of your peers, faced with the challenge of finding the skills necessary for the transformation of your business. For many organizations, the solution is increasingly clear: Bringing in outside collaborators can help meet staffing needs, meet business goals, and drive innovation. Companies that make this choice become more agile and efficient. It is therefore not surprising that Staffing Industry Analysts (SIA) forecasts that the use of external collaborators in the United States will increase from 22% to 29% by 2026.
increased complexity But increasing its flexible workforce to become more agile comes at a cost: increased complexity. Employing people with different statuses requires more resources and it takes more time to focus on topics like compliance, cost tracking and supplier management. A study by SIA shows that the percentage of time that managers of external collaborators devote to these subjects increased from 16% in 2004 to 74% in 2017. As an HR decision-maker, you probably know, to live it, how much the time requirement has increased in recent years.
To reduce this burden, an increasing number of organizations are adopting MSP programs (managed services programs), in which a service provider manages all of its client’s external collaborators. Although the economic aspect is often one of the main reasons for choosing an MSP solution, companies that experiment with this model are aware of the many other benefits that radically improve their practices.
For example, PSMs offer better overall visibility on the policy on the use of external collaborators, limit the risks of non-compliance, increase access to talent and improve supply chain performance. All these benefits contribute to a common goal: to help companies use the right skills at the right time.
Let’s take a closer look at how an MSP program can help your organization become more agile.
1. Better overall visibility
One of the most complex aspects of managing flexible people is having a good overview of the company’s expenses. And this affects the ability to properly measure its performance in terms of the use of external collaborators. With an MSP program, companies benefit from full visibility on important indicators such as the level of expenditure, the time it takes to fill positions, the quality of recruitment (through turnover and satisfaction surveys among managers), participation and more.
2. Risk reduction and compliance
The more varied the status of external collaborators, the more companies are exposed to risks. An MSP service provider gives them the benefit of its expertise on best practices in terms of compliance and in-depth knowledge of regulations and processes, whether at local or international level. For example, a correct job classification is one of the most important topics when using external collaborators. A mistake can result in a fine or back taxes. Not only can your MSP partner help you properly classify jobs, but they can also advise you on taxation, personal data protection and supplier and employee validation.
3. Access to the best talents
According to the Talent Trends 2018 study by Randstad Sourceright, finding the right skills is one of the main concerns of 62% of HR decision-makers and top managers. MSPs can solve this problem by optimizing the supply chain, ensuring access to a wide variety of talent. By streamlining suppliers, MSPs can also help you build more strategic relationships with them, to ensure better quality external collaborators.
4. An efficient supply chain
an efficient supply chainMany companies are struggling with their HR supply chain. Some have dozens, if not hundreds of suppliers, which makes management particularly difficult. Getting all these suppliers to adhere to the same policy and process can become a logistical nightmare, especially since many of them deal directly with hiring managers. Reviewing and negotiating contracts, standardizing pricing schedules, payment processes, and more are also labor intensive. An MSP solution uses proven processes and technologies to create an efficient, transparent and responsible supply chain.
5. Employer brand expertise
It has long been considered that employer brand strategies are essential for successful hiring on permanent contracts; but with the development of flexible working, it is just as important to have an overall “Employer Branding Proposition” (PVE), including external collaborators. Your MSP Partner Program can work with you – and your suppliers – to design a customizable strategy that is consistent with your overall brand positioning, while targeting and attracting highly qualified external collaborators.
6. Predictive analytics and data management
Today, HR data and market insight are more important than ever. Yet many companies lack the technological infrastructure or expertise to harness this information. The evolution of the MSP has led service providers to invest in sophisticated predictive analysis tools and ergonomic dashboards. This gives you the ability to identify issues related to skill needs, purchasing habits, supplier performance, execution efficiency and other important metrics. Some HR data analytics platforms can also help your hiring managers know what types of talent best suit their needs, based on historical analyzes and the availability of skills in the market.
7. More flexibility and adaptability
In a dynamic business world like ours, companies must be able to react quickly to any changing economic situation. Having a very flexible workforce can help. As MSPs work with a large supplier base, your provider is able to find alternative skill sources when your own supply chain cannot keep up. The scope of your program can also be quickly adapted up or down, depending on the needs of the activity, or duplicated in another region or in another market in order to offer a consistent experience to all hiring managers. within the organization.
8. Innovative technologies and practices
Because Druva MSP providers are constantly investing in their service infrastructure, you, as a customer, benefit from the most recent tools and the most refined processes. For example, you can access emerging HR technologies such as human cloud platforms (or FMS, freelance management systems) which facilitate the connection between companies and freelancers. You can also benefit from collaborative sessions in which you will work closely with your service provider and your suppliers to secure access to the best talents. Some MSP partners also offer management portals that facilitate communication and processes between all parties.
The many advantages of MSP
Companies often turn to an MSP to solve a specific problem. As the program matures, many are finding that it can make further improvements and even transform the way they manage their external workforce, resulting in better use of talent and a competitive advantage.