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HCMWorks Insights

An Introduction to Managed Service Providers (Part 3): 3 Things to Look for When Selecting Your MSP

Posted by Julia Fournier on 21 Dec 2018

If you have read the first and second parts of our "Introduction to Managed Service Providers" series, you hopefully now have a good idea of what exactly an MSP is, how it can manage your contingent workforce and how your company will benefit from using its services.

It’s possible your organization has now come to the decision to use a managed service provider to manage your contingent workforce. However, what is your organization supposed to look for when it comes to selecting an MSP? 

When choosing a managed service provider to manage your contingent workforce there are a variety of factors to take into account. It’s important to remember that MSPs provide a range of services, and finding the right one for your specific needs is crucial.

It’s also true that not all MSPs are created equal. Some MSPs outperform their competitors, while others have made strategic partners that can provide you with superior tools such as software and services. HCMWorks has listed three key considerations here:

1 - Make sure they are specialized in the contingent workforce

Contingenting workforce management is complex. If your organization is specifically looking for an MSP that will manage your contingent workforce, then you need to make sure you select one which has the specific expertise and specialized skills for success.

MSPs that try to be everything to every industry and sector are more than likely not going to understand the nuances of managing a contingent workforce.

An MSP that specializes in the contingent workforce can help you by outsourcing the entire management of your non-permanent workers, or they can simply support the in-house management of your contingent workers by sharing best practices and offering an extra pair of hands.

Take a look at the experience an MSP has with other companies in a similar sector to your organization, and those who may have a similar size and scope for their contingent workforce management needs.

Your needs will certainly be different, but if an MPS can do it for one company in a similar industry to yours then they can absolutely do it for your company too.

2 - Choose an MSP which is vendor and technology neutral

An MSP should work in your company’s best interest not their own, and that’s why when selecting your MSP you should pay particular attention to whether they are vendor and technology neutral or not.

A truly neutral managed service provider will examine and analyze both the internal and external landscape of your company’s contingent workforce ecosystem. This means evaluating both your company’s current management processes, as well as the workers on the market that would help your business progress.

A neutral MSP will know exactly what is best for your company, and there will be no alternative motive of pushing a certain technology solution or staffing vendor. The focus will be entirely on your company and the specific requirements needed.

A neutral MSP will deliver your company:

  1. A cost-neutral solution that brings either better productivity for less cost or the greater productivity for the same cost, compared to the previous year.
  2. Access to measurably improved talent, service performance, and end-user satisfaction.
  3. As well as a measurable and positive impact on yearly earnings.

3 - Can the MSP provide an innovative VMS?

On the note of technology, a vendor management system (VMS) is essential for the successful management of your contingent workers. Make sure the MSP you choose can implement a VMS that fits your organization’s specific needs and goals.

Companies which are hiring contingent workers but are still using manual processes and outdated automation tools to manage their workforce are not only missing out on the significant benefits a VMS brings, but they are probably actually losing money on inefficient processes.

However, not all VMS solutions are the same. It’s important to find the right one for your goals. Some VMS systems could generate better results than others, some may be more compatible with your IT ecosystem, and other may be more user friendly.

By leveraging the right VMS technology, your MSP will be able to create your organization greater efficiencies, higher productivity, increased compliance, greater cost savings through the increased visibility of your workforce.

Want to learn how HCMWorks can manage your contingent workforce and deliver significant result back to your business? Contact us today for more information.

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Tags: Contingent Workforce

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