making the decision for an MSP
If you are one of the many organisations that are aware of the vast benefits of utilising a Managed Service Provider, the first step in determining whether an MSP would be suitable for your business is to examine your current practices and desired future state — whether you are hiring for new growth or rebounding as demand increases. This can be done by:
- reviewing your current procurement process
- identifying areas of improvement
- determining scope of services
- conducting a business analysis
Each step requires the input of all critical stakeholders involved in the contingent talent acquisition process. This includes business leaders, hiring managers, procurement professionals, the compliance office and HR. At the conclusion of the exercise, internal stakeholders should be able to define their goals, recognise the resources needed and identify any obstacles that could take your contingent workforce strategy off track.
This exercise will help your organisation to understand its current approach, develop clearly-defined goals and set performance metrics for achieving them. Without this clarity, it will be difficult to develop a roadmap or determine what success looks like. These elements are critical to your next step: considering the options for managing your contingent workforce programme.
making the case for end-to-end MSP
Once the need for an MSP is clear, it’s time to make the case for this contingent workforce management model. When advocating for an external solution, you’ll need to gain executive buy-in. This can be done by presenting the hard costs of using an insourced solution, as well as the soft opportunity costs of keeping the function in-house.
It is also important to highlight the many benefits of adopting an MSP (shown here), from cost savings and faster time to fill, to direct sourcing capabilities and benefiting from a partner with the expertise to continually improve the company's talent strategy, especially during times of uncertainty.
Also crucial to ensuring executive support is engagement.
building a strong MSP relationship at the start
A successful MSP requires proper alignment between key internal and external stakeholders. This begins with clear deliverables and expectations, as well as defined roles for both the client and the talent solutions partner. Regular communication using the most effective channels will also help keep the programme focused and on track.
For instance, executive sponsors on both sides should be involved from the start, checking progress on implementation and addressing strategic high-level activities as the MSP relationship progresses. Further downstream, the legal teams of the client and service provider need to approach contract negotiations with a collaborative mindset.
The goal is to ensure favourable terms and service level agreements (SLAs) that benefit everyone. The employer’s designated project manager will need day-to-day support from the service provider on tasks such as training internal teams, supporting change management, and reviewing programme details and reporting metrics.
The two parties should also align functional stakeholders. These include IT, accounting, procurement, HR, hiring managers and corporate communications on the client side. On the provider side, the relevant parties include professional services, technology analysts, supplier relations, operations analysts, the vendor management system (VMS) project manager and back-office personnel.
Before engaging with a provider, a clear plan to continually communicate and seek feedback from sponsors, so everyone is informed of successes, challenges and improvement plans, is vital. You can set your MSP up for success by maintaining executive sponsorship for the long term; keep top decision-makers involved in the selection and implementation process. Ask them for their input at critical milestones, whether that means selecting the internal project team, being involved in the selection of a provider, approving the contract, supporting change management or signing off on technology investments.
Is an MSP the right solution for your organisation?
Deciding whether an MSP is right for your organisation requires an understanding of how you might improve your organisation's contingent talent strategy right now, as business continues to evolve. It also takes a clear idea of where your company wants to go based on emerging trends and changing business models. The case for contingent labour and benefiting from a flexible, agile solution is growing as our workforce demographics and economic trends change and it’s important to have an experienced expert on your side.
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: