While only 8% of businesses have established processes surrounding their contingent workforce management, the majority of global organizations struggle to manage their external workforce. Partnering with the right Managed Service Provider (MSP) can solve many of your business’ staffing issues --- from putting an end to complex processes to giving you greater visibility over your program spend.
A Managed Service Provider (MSP) acts as the interface between businesses and their talent suppliers. Using a Vendor Management System (VMS), they facilitate the end-to-end management of the contingent talent lifecycle from the creation of job requisitions, through candidate sourcing, onboarding, contracting, invoicing, and payment. By doing this they help businesses streamline processes, reduce costs, improve regulatory compliance, gain business insights, and more.
But choosing staffing MSPs and VMSs can get tricky. And failing to partner with the right solutions could cost your business, leading to compromises in areas like candidate experience, overall candidate quality, and rate standardization. To avoid the repercussions stemming from these poor partnerships, evaluate your current workforce situation, and identify the right solution providers that can help you achieve an efficient contingent workforce program.
The staffing solution world is littered with buzzwords, and it’s common for businesses to find themselves overwhelmed by vernacular like ‘workforce management’, ‘designated teams’, and ‘total talent management’. Although there is nothing wrong with these terms, it’s necessary to have some background knowledge on these terminologies and verify whether these solution providers can actually deliver on their claims.
So, cut through the noise and ask your potential MSP/VMS partners the following questions:
Attracting and hiring top talent is the primary reason why businesses partner with MSP/VMS solutions for their contingent workforce programs.
Look for MSPs that have partnerships with a large number of reputable staffing suppliers that in turn, have access to diverse talent pools. Doing so ensures your access to various skill sets and helps you quickly fulfill the present and future hiring needs of your business. This simply means you reduce your time to hire. Also, with access to wider talent pools, you’re more likely to benefit from a greater caliber of candidates and this ultimately improves your business’ workforce quality.
Some MSP/VMS solutions tout ‘vendor optimization’ as a cost-effective method of supplier management, which in practice often means limiting the number of suppliers you work with. While it may seem easier to build relationships with a limited number of suppliers, it also limits your access to restricted talent pools, thus lowering your probability of landing the best possible candidate.
The ‘Human Cloud’ has created significant shifts in the staffing industry since 2016 and only last year accounted for $178.5 billion in global spend. So what is the human cloud? Staffing Industry Analysts defines the Human Cloud as “an emerging set of work intermediation models that enable work arrangements of various kinds to be established and completed (including payment of workers) entirely through a digital/online platform.”
A great example of a solution that leverages the power of the human cloud is a built-in hiring marketplace. These platforms give you access to a wide range of suppliers that cover various skill-sets, geographies, niche job categories, and more. So, make sure not to restrict your talent reach, and look for innovative solutions that include a scalable marketplace of talent suppliers at competitive prices.
Since candidate experience is an important deciding factor for any applicant, it is crucial to attend to the hiring experience for all your talent, whether full-time or contingent.
Part of delivering a positive candidate experience means including the candidate in every step of the hiring process. Without a streamlined hiring solution, you risk creating a lengthy hiring process, with more potential for communication gaps with your candidates. This often translates into decreased candidate engagement, negatively affecting the quality of your workforce down the road. Negative candidate experiences can also damage your overall business reputation, as these applicants are most likely to leave negative reviews on employer review sites like Glassdoor, Indeed, etc. potentially deterring other candidates from applying to your organization.
Modern MSP/VMS solutions, on the other hand, can streamline your hiring process via direct interview scheduling and communication, including feedback sharing with your candidates. And this in turn fosters a positive candidate experience which equates to faster impact and engagement post-hire.
Faster Time-to-Value is an important consideration in any VMS implementation process. But, no two businesses have the same set of staffing problems to solve, which makes each VMS implementation a unique process.
Look for MSP/VMS solutions that rely on time-tested implementation strategies and that collaborate with your internal stakeholders to identify areas needing refinement in the VMS configuration process. Additionally, your solution provider should facilitate the data migration of your incumbent supplier base into the new VMS.
Besides the above, also consider examining the associated implementation costs and recurring charges as many staffing solutions on the market come with a minimum spend required to gain access to their comprehensive solution.
Your MSP’s pricing strategy should be an important consideration before sealing your partnership. Remember, your partner’s pricing strategy can influence your program’s success in the long run.
Traditional MSPs don’t charge businesses, rather they monetize their supply base. The suppliers, in turn, must pay MSPs to access their client programs. The issue with these supplier-funded MSPs is that they deter high-quality suppliers that don’t need access to an MSP’s client base. This means the top players with great customer service and quality outcomes normally don't join MSP programs. Additionally, these models also discourage emerging industry players — often the pioneers of innovation.
To support the innovation you deserve for your long term program success, look beyond this pricing model.
Digital transformation is disrupting every area of business, and nearly half of the global business leaders are struggling to keep up. If your business is looking for a highly efficient and agile solution for your contingent program, it makes sense to explore the latest technological advancements in the staffing world.
Multi-tenancy solutions tend to offer more innovation when compared to on-premise software solutions and they come with an array of benefits; like reduced implementation time, easier onboarding, lowered costs, robust up-gradation, and streamlined maintenance. These solutions are cloud-based, allowing multiple clients to benefit from the solution’s functionalities while keeping each client’s data separate and secure.
Another advancement in the staffing arena is the use of AI to automate and boost hiring processes. For example, AI-based dynamic job distribution technology matches job requisitions at both the vendor and candidate levels, optimizing vendor performance, and guaranteeing you the fastest access to the best candidates.
Additionally, modern solutions can integrate candidate onboarding, meaning all candidate-related processes are executed on a single platform — something that traditional MSP/VMS solutions don’t do. These modern platforms enable hiring managers to monitor candidates at every stage of the hiring pipeline, driving candidate visibility, increasing engagement, and equipping you with data insights on your suppliers’ activity.
Crowdstaffing checks all the boxes of an enterprise-grade staffing solution and helps your business boost efficiency, compliance, and cost savings by enhancing your spend visibility.
With Crowdstaffing, you benefit from our robust vendor management system (VMS) that includes our cloud-based hiring marketplace pre-loaded with vetted talent suppliers that can efficiently fulfill your talent needs with great talent. In addition, our versatile solution can either act as your MSP or support your in-house MSP with absolutely no initiation costs.
Curious to know more about how Crowdstaffing’s solution can revolutionize your contingent workforce program?
Schedule a demo with us today at the link below!