What is MSP (Managed Service Program)?
A Managed Service Program (MSP) provider in staffing is an outside organization with expertise in recruiting temporary employees. A Managed Service Program provider manages the temporary worker recruitment for an organization and is responsible for the end-to-end management of the contingent workforce – from supplier management to strategic workforce planning. Utilizing a Managed Service Program provider is one of the most effective, cost-efficient ways for a business to manage its contingent workforce. An MSP provider provides a dedicated team to manage the entire talent acquisition and recruitment process for a client or a series of clients. The MSP provider is in charge of raising awareness of temporary positions within local labor markets.
Managed Service Program, Managed Service Provider: what’s the difference?
In the staffing industry, the term MSP is used interchangeably to refer to both a Managed Service Program and a Managed Service Provider. Though this can be confusing, a Managed Service Program (a contingent workforce solution) is delivered by a Managed Service Provider (a contingent workforce solution specialist). For clarity and transparency, we’ve used the full terms throughout this page.
How does MSP (Managed Service Program) work?
Managed Service Program providers work as an intermediary between staffing firms and clients. MSP providers connect a staffing firm’s contingent workforce teams with employers that need them. People who work for an MSP provider also are charged with receiving applications, screening those applications against employer requirements, interviewing candidates, and hiring them on behalf of organizations.
An Managed Service Program is typically administered as part of an organization’s contingent workforce program. It may encompass most (if not all) flexible work arrangements, including temporary staffing, independent contractors, freelance and gig workers, payrolled talent and statement of work (SOW) suppliers. The solution is managed by a Project Management Office (PMO) overseen by the service provider.
MSP providers may use Vendor Management Systems (VMS) to work with clients and staffing firms in providing contingent workers. A VMS consists of technology and tech applications.
A Managed Service Program provider’s main role in the staffing process is to be a bridge between your agency and the client. Your MSP provider will assist in key staffing activities like:
- Receiving job offers from clients
- Compiling work requirements for your staffing agency
- Selecting and onboarding the external workforce
- Collecting payments from clients
- Tracking external workforce performance
- Improve access and speed to talent
- Simplify and centralize processes
- Get greater visibility and control over spend
- Lower talent costs
- Reduce compliance risks
- Management of contingent labor
- Qualified pools of talented candidates
- A streamlined recruitment process
- Contract management
- Supplier management and selection
- Reporting and analysis
- Invoice management
- Regular progress updates and business reviews