How Can I Benefit From an MSP?

Contingent labour is becoming an increasingly common fixture for more businesses. With more vacancies currently than unemployed individuals (Labour market overview, UK: May 2022—ONS) and 63,000 new additions to the contingent workforce between March and May 2022 (Staffing Industry Analytics), temporary engagements are an appealing solution to the growing skill-shortage problem.

However, temp labour is not without its challenges. Temporary workers can be costly, especially those with in-demand skills. And when engaged in high volumes, businesses can face low visibility, causing risks to multiply and costs to further skyrocket (be that to accidental overpayments or expensive management processes).

Due to this, many are looking into MSP solutions. Coordinating your temporary workforce in-house may seem like the economical option. However, inexperienced businesses will likely find the task time-consuming, costly, and complex. Some may even face serious liability, unequipped with required knowledge and tools.

As temporary workers present unique challenges, taking on a specially skilled MSP could be a make-or-break decision. The right provider can help streamline your workflow and budget, keeping talent supply cost-effective, efficient, and compliant.

What exactly can MSPs offer?       


Here are the Top 4 benefits:

1) Digital Transformation

Many businesses are reluctant to invest in single-purpose temp workforce software. They commonly opt to repurpose multiple in-house systems, forming complex and low-visibility tech stacks. Managing a temporary workforce via this method can cause costs to spiral and risks to mutate within the blind spots.

The right MSP will be an early adopter of latest recruitment tech, continuously leveraging it to hone their managed service. With MSPs equipped with systems such as VMS, you can benefit vicariously without the extra cost.

With innovations like automation, real-time data, and cloud-based systems, you can receive a tech-supported service and top-quality talent supply, all within your MSP fee.


2) Visibility

Vital details can fall into obscurity when managed by busy and overloaded HR teams. An MSP, however, holds the sole purpose of temporary workforce management. This means they have full capacity to closely monitor costs, compliance, and quality.

The right MSP will send you regular and accurate reporting on these three points too, maintaining a transparent and trusting business relationship (often facilitated by their tech choice) This provides the opportunity to raise issues or requests incrementally.

In condensing recruitment down to a single specialist provider, you can gain improved visibility and can better monitor ROI.


 3) Expert Consultancy

The past few years have shown how quickly requirements can shift. As we have witnessed through Brexit, IR35 and COVID-19’s Furlough Scheme, businesses often have to set aside vast amounts of time and resources just to avoid liability, often at the cost of core business.

When working with an MSP, you can maintain focus without disruption. It’s their job to keep up with latest trends, governance, and legislation whilst maintaining a quality temporary labour supply.

Some MSPs even offer structured training included within their service. An experienced MSP will have had years of hands-on experience with temporary labour, so can offer expert insight into best practices.


4) Agility & Scalability

As the market fluctuates, you may need to upscale or downscale at short notice. With an MSP, you can access cost-effective and risk-free talent on demand, maintaining an agile approach.

Even with skill shortages at hand, an effective MSP will have a well-connected supplier network (if they’re a neutral vend) and an extensive talent pool. This allows you to promptly respond to market shifts and take on larger projects and contracts without obstacles.

Pricing models often remain predictable with MSPs, usually operating on an outcome-based fee. Whilst costs can quickly inflate when managing temporary labour in-house, MSPs are able to streamline their service, therefore costs in proportion.

This means you can better plan your budget according to your needs, prevent unnecessary cost leakage, and maintain full efficiency.


In Conclusion…


Working with an MSP is one of the most effective ways to secure ROI on temporary labour. Too many businesses make the mistake of managing their temp workforce in-house under the illusion of cost-savings—yet simply lose out.

Handing it over to the experts is the best way to maintain a high-quality temporary workforce, avoiding its notoriously high costs and risks. With this, you can refocus on core business and accelerate profitability.


Get in touch and find out how your business could benefit from ENGAGE… 

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