VMS technology delivers a tremendous amount of what, but it’s the MSP that answers the more critical question: why? MSPs bring workforce management expertise to contingent labor programs, going beyond the transactional aspects of the VMS to deliver consultative insights that help clients ensure legal compliance, mitigate risk, and improve the quality of their workforce. Experienced MSPs improve contingent programs by managing every aspect of the program that will impact their client’s bottom line, including:
Knowing which suppliers excel at different talent
requirements enables MSPs to direct requisitions to the suppliers who
will deliver the best talent for a given position. Every worker has an
impact on your business – for better or for worse – so the cumulative
value of consistently deploying exceptional talent has a long-term
positive impact on business results.
Because an MSP has broad visibility of talent availability
and pay rates in each market they serve, they can better negotiate
rates from staffing suppliers and SOW vendors while maintaining a
high-caliber workforce. Moreover, MSP management of a VMS further
reduces costs by enabling the client’s internal resources to focus on the
core business while the MSP manages the contingent program.
MSPs work with a roster of suppliers for
each program they manage. These relationships give clients access to
an array of proven suppliers who may not have been in their existing
network, especially niche talent providers who specialize in key skill sets.
Non-compliance with co-employment regulations
and worker classification can have significant legal and financial
consequences. A VMS can track whether your suppliers have checked
the appropriate boxes, but an MSP has direct engagement with
suppliers and enforces compliance in order to protect the client.
Making sound decisions
about your contingent workforce requires reliable
information (available through the VMS) and the
expertise to analyze that data to identify the trends
and opportunities that are relevant to your business
(available from the MSP). A powerful MSP, especially
one with industry-leading analytics like Volt’s, can
monitor and measure performance at every stage
of your program as well as compare performance
to every other program the provider manages in
that region or industry. This information is crucial
for identifying inefficiencies and getting the most
value from your suppliers and workforce.
Supplier Performance Management
Not all suppliers
deliver the same results. MSPs provide oversight of
supplier contracts and continually monitor speed of
delivery, talent quality, program compliance, adherence
to service level agreements, and commitment to the
client. This process ensures that requisitions are routed
to the suppliers who will deliver for the client. In addition,
the MSPs perform supplier mentoring (providing best
practice guidance to improve delivery) and supplier
optimization (making sure the client has the right
number of suppliers to effectively staff their company).