What are Staffing MSPs?
Staffing MSPs, Managed Service Providers or Managed Staffing Providers, are outsourced agencies who look after all staffing operations of hiring non-employees (contractors) for clients using other staffing agencies. MSPs oversee the entire lifecycle of the process of hiring temporary - from collecting the open requirements through payment to the approved staffing agencies for the workers time.
Why do Companies use MSPs?
Companies feel that the legal, HR, compliance, and regulations involved in managing staffing agencies to hire contractors was too cumbersome and not very strategic for the company. They started demonstrating how MSPs standardized processes, saved money and reduced the risks of being non-compliant and the value proposition was strong. Estimates are that 60-80% of Fortune 500 companies have adopted the MSP model for staffing.
Who selects the staffing agencies in a MSP staffing program?
In large companies MSPs start with a list of current staffing agencies from the client's category manager for contingent labor. These will include vendors selected based on past performance, strategic reasons or diversity reasons that the client wants to retain.
How do staffing agencies get selected into an MSP Program?
Companies usually send out RFIs (Request for Information) to hundreds of companies which asks for brief highlights about the company like location, size, customers, etc. Then, they select from the list and send more detailed RFPs (Request for Proposals) which asks more specific questions related to performance and abilities. This is followed by interviews of the executive team, potential team members and reference checks with other clients of the vendor.
How can you find the Staffing MSP for any Fortune 1000 company?
Just search for a company you are interested in the search bar, go to the Company's page and look under the category of 'MSP, VMS & Pay rolling and find the MSP that company uses.