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HCMWorks Insights

How To Leverage Your Managed Services Program (MSP)?

Posted by HCM Works on 27 Sep 2016
If you're managing a contingent workforce using a Managed Services Program (MSP) - how do you know if you're getting the most out of your MSP partnership? 
When starting with an MSP, create a team to establish program goals, with realistic, achievable expectations as to when you should realize each of these goals. For example, how much value can be derived in the first year, and then the second year of the program? Given that virtually all MSP contracts are for a minimum of two years, with three to five years being the norm, setting goals for several years out is a good practice.
What types of operational goals can you set with your MSP? Here are a few suggestions;
  • Access to the best talent
  • The creation of a talent pool
  • Control of costs, risk reduction and compliance
  • Improved performance from your supplier base
  • Higher levels of contingent worker engagement
  • Reduced contingent workforce expenditures
  • More efficient projects completed, on time, and on-budget.
Those companies that can prioritize these goals and make them clear, can translate them into specific action plans, KPIs, or critical success measurements, that in turn, can be included in the contractual agreement with the MSP.
Additional questions to ask that will help you leverage your MSP relationship, include; What strategic role should your MSP play in helping you use contingent workers to strengthen your business?  Are you looking for an MSP who merely provides data, or are you looking for an on-going consulting relationship as a professional advisor?
If you're looking for just data, your MSP must be able to provide you with an enterprise-wide view, and cross-company visibility, on all aspects of your contingent workforce management program. 
There will be standard dashboards and reports, and you should also have access to on-demand numbers and costs, of contractors on assignment, the performance of every supplier, the status of all open requirements, and other critical operational factors.  
Don't Have the Resources to Engage A Contingent Workforce MSP?
If you are looking for your MSP to serve as a consultant or advisor, they will need to bring new insights into the industry, developments as they happen, and recommendations and improvements, to meet your evolving business requirements, 
Maybe a good time to do this is with quarterly business reviews, where senior executives can be brought in to discuss ‘future directions’.  
Here at HCMWorks for example, we like to establish, through an executive sponsor, a strategic process that establishes high-level relationships with C-level, strategic/executives, as well as the day-to-day operational levels. 
At these meetings, we can offer our expertise, industry knowledge, strategic insights on labor market conditions, legislation updates, and input on technological advancements to increase overall operational efficiency.
By setting the right goals, with the right processes, you can leverage a very productive relationship with your MSP. You can define and manage a program that delivers specific, measurable value every year while establishing a foundation for future growth. To ensure success be sure to use good up-front, two-way communications, a strong feedback mechanism, and get senior executive engagement and buy-in.
Additionally, a properly structured MSP, such as our own HCMWorks Managed Services Program, can protect your organization against misclassification challenges and class action lawsuits across all categories of non-permanent workers, be it through staffing vendors, directly sourced candidates, independent contractors, and SOW resources.
Ask our team of experts how we can help.  Learn more about why HCMWorks could be the right choice for your Contingent Workforce Managed Services Program.
request a call with a Contingent Workforce Specialist

About HCMWorks

We are a contingent workforce service provider helping organizations gain better access to talent through the use of independent contractors, consultants, temporary workers, freelancers and other non-payrolled employees. We provide the expertise, the technology, and processes to help you reduce your workforce costs, mitigate against misclassification and co-employment risks, and increase the efficiency and timeliness of your contingent recruitment process. Read more about what our clients say about us here.

Tags: Managed Services Programs, Contingent Workforce

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