A Managed Service Programme (MSP) involves a recruitment partner taking primary responsibility for managing the sourcing, engagement, and administration of temporary, contract, and other non-permanent workers. This includes everything from supplier management to strategic workforce planning. Utilising a Managed Service Provider is among the most cost-effective methods for your business to manage its workforce.
Below we will take you through some of the benefits of engaging with Randstad to develop an MSP partnership.
Although cost efficiency is often one of the first reasons that companies consider an MSP solution, those that implement this talent model soon realise many other benefits that drastically improve their business performance overall.
Let’s take a closer look at eight ways in which an MSP can help your company deploy the right talent, at the right time at the right cost.
1. enhance programme visibility, data and reporting
One of the major challenges in managing a contingent workforce is achieving a clear view of spending across the business. Implementing an MSP provides transparency on crucial metrics, such as spending levels, time to fill positions, quality of placements (measured through turnover data and manager satisfaction surveys), programme participation, and more. This insight enables informed decision-making about your future workforce.
2. mitigate risk and support contingent workforce compliance
Organisations can encounter heightened risk and liability when utilising alternative work arrangements. A managed staffing model provides your company with external expertise on compliance best practices, along with insights on local, regional, and global regulations.
For example, employment classification is a critical compliance consideration for contingent workforces. Improper classification can lead to fines and back taxes. An MSP partner like Randstad not only ensures proper classification but also helps you manage taxation, data privacy initiatives, and vetting suppliers and workers.
3. build and nurture managed talent pools
The way UK talent finds new work and the frequency they are changing jobs is constantly changing, and challenging for employers to keep track of. When looking to onboard new talent, it’s beneficial to know about their habits. According to the 2024 Randstad Employer Brand Research, based on feedback from 12,100 UK workers, job switching behaviour has shown a consistent upward trend since 2021 (+3%). The report revealed that 19% have changed employer in the last 6 months and 27% plan to change jobs within the next 6 months. When looking at channels used to look for new jobs, 33% of UK jobseekers told us that recruitment agencies are their go-to.
Direct sourcing and managed talent pools offer your organisation an agile, talent-focused approach to engaging and deploying flex workers. Building a closer relationship with talent not only helps with cost savings but also makes it easier to engage and re-engage qualified contingent workers than through a third party. This is especially important as we experience skills shortages in many vital roles across the UK.
Managed service providers bring the expertise to help you build, nurture, and source from these talent pools. Additionally, they can assist in sourcing skills from a pre-approved supply chain when talent is not available through direct sourcing.
4. streamlined, consistent talent processes
Ensuring all candidates adhere to policy and processes can be a logistical nightmare, especially as so many are administered individually by hiring managers. Vetting and negotiating terms, standardising rate cards, processing payments and other talent supply chain management functions all require tremendous management as well.
The ability for an MSP partner to have physical on-site presence presents valuable opportunities to fully embed into your business’ culture, making it even easier for us to take this administrative burden from you and manage the full end-to-end processes of your temporary workforce management.
5. leverage predictive talent analytics and labour market intelligence
Workforce data and business insights are now more critical for organisations than ever, yet many lack the technological infrastructure or expertise to effectively leverage contingent labour trends and data.
MSPs are increasingly investing in advanced predictive analytics, labour market intelligence tools, and user-friendly reporting dashboards. These tools empower your contingent workforce managers to identify issues related to skill needs, spending patterns, supplier performance, fulfilment efficiency, and other key metrics.
Access to talent analytics can guide decisions on the best types of talent for hiring manager needs and also establishes a strong foundation for achieving future total talent management goals.
6. improve flexibility and scalability
Constantly changing market conditions mean it is essential to respond quickly, and a highly flexible workforce can help you achieve greater business agility. By working with an extensive supplier base, including access to the best sourcing platforms and local job-focussed organisations, MSPs can find alternative sources of skills when your existing supply chain is unable to deliver.
Your programme can also be scaled up or down quickly as the economic recovery fluctuates. An MSP solution can also be replicated in different locations or markets to provide a consistent experience for hiring managers throughout the organisation.
7. achieving compliance with IR35
MSP offers multiple advantages when it comes to achieving compliance with IR35:
- Firstly, it provides a centralised database of your contingent workers. Companies without a MSP often struggle to keep track of their contingent workforce, including their costs and compliance status. A good provider addresses this issue, offering easy access and visibility into your flexible workforce.
- Secondly, an MSP ensures an auditable and consistent process. A crucial aspect of mitigating IR35 non-compliance risks is demonstrating that you've followed a compliant process and applied reasonable care in your IR35 determinations. An MSP utilises technology and account governance to ensure a consistent and auditable process for engaging off-payroll workers.
- Finally, a MSP provides an additional layer of oversight. Your provider shares liability, so they have a vested interest in monitoring your compliance processes and protecting you from risk.
8. keep innovation and technology at the forefront
Because MSP providers constantly invest in their delivery infrastructure, as a client, you benefit from the newest tools and processes, including:
- access to emerging HR technologies, vendor management systems, video interviewing, talent pooling technologies, skills assessments, freelancer management systems and more
- collaborative customer review sessions in which suppliers work closely with clients and the MSP partner to ensure access to the best talent
- management portals that facilitate communications and processes among all parties.
Whether you’re exploring a MSP workforce solution for the first time or looking to switch from your current provider, it doesn’t have to be daunting. By working with Randstad, you can benefit from cost savings and efficiencies without losing access to the best talent or much-needed skills. We’ll be your trusted partner for talent and our experts will guide you and keep you informed through every stage of the journey.
If you are interested in finding out more about the benefits of a MSP or exploring how Randstad can help you with your talent management click below to request a call back: