Ever felt like you’re spinning plates, trying to keep your business operations running smoothly? One moment you’re focused on site safety, the next on engineering, and before you know it, procurement needs your attention. It’s a balancing act that can leave even the most seasoned professionals dizzy. If you’ve ever wondered “What is an MSP?” but aren’t quite sure what it does or why your organization might benefit from partnering with one, you’re in the right spot.
That’s where a Managed Service Provider, or MSP, comes into play—consider them the expert plate spinner in the circus of your business. They’re not only able to manage all your spinning plates, but boy, do they put on a show doing it.
Together, with insights provided by our very own Director of MSP, Brian Shoemaker, we’ll dive into the world of MSPs, explain why they’re becoming a must-have for businesses (especially those who employ many contingent workers), and how they can keep your operations spinning seamlessly.
So, stay with us as we help you navigate the dynamic act of running a business, without letting any plates fall.
What is an MSP?
So, what the heck is an MSP in the first place? Between MSAs, SOWs, SLAs, KPIs, FTEs, and about a hundred other acronyms, it’s no wonder MSPs, a relatively newer workforce solution, can slip through the cracks.
An MSP, or Managed Service Provider, is a third-party company that specializes in managing your contingent workforce with consistency, best practices, and efficiency. Regardless of how complex, large, or decentralized your current workforce is, MSPs streamline the recruitment, onboarding, and management of your team, including contract, contract-to-hire, and temporary workers.
Combining our expertise in contract employee management and industry-leading technology, MSPs like Per Sé can help reduce costs, increase productivity, and ensure compliance with employment laws and regulations. By centralizing the hiring process and managing vendor relationships all in one intuitive platform, Per Sé MSP services can also help you regain control of your complex workforce, mitigating risk and optimizing performance.
Who Benefits from Engaging with an MSP?
Because Managed Service Providers typically help organizations that employ a high-volume of contingent workers, we’ve found that MSPs provide the most value to large businesses with a sizeable proportion of contract employees. On top of that, these organizations tend to have a significant amount of spend associated with employing, onboarding, and managing their contingent workforces.
On top of that, companies with fluctuations in their hiring needs tend to enjoy several benefits from partnering with an MSP. Seasonal peaks or project-based hiring needs place heavy demands on an organization’s workforce. The cycle of finding, hiring, onboarding, and then managing a contract employee, who’s only with your company for a few months, can take you all the way to their offboarding. Not leaving you very much time to, you know, actually run your business.
Our Director of MSP, Brian Shoemaker, notes that specialized industries, like oil and gas, engineering, renewable energy, and power generation, often require hard-to-find niche expertise. MSPs, with their extensive networks and industry knowledge, can source and place these specialized roles more effectively than in-house teams might.
The Growing Need for MSPs in Today’s Workforce
Now that we’ve determined who needs an MSP, let’s talk about why the need for MSPs has grown almost exponentially over the years. And, most importantly, why that isn’t changing anytime soon.
The challenges we’re seeing in the current labor market, things like talent shortages, compliance requirements that seem impossible to keep up with, and rising costs (of damn near everything), have placed undue strain on organizations of all sizes and in all industries. What’s worse, your organization isn’t the only one facing these challenges head on. Meaning, for the (seemingly) few qualified candidates out there, there’s several companies competing for them.
In 2024, the economy might look a bit lean. We’ve been on the edge of our seat for at least 24 months now, waiting for the economy to crumble and enter the recession experts have been calling for. This issue has been ongoing for several years and is not confined to specific regions, all industries. The scarcity of skilled workers remains a significant hurdle for business growth.
Consistency and Control
An MSP delivers consistency and control, streamlining your contingent workforce management. With an MSP, you have an easily accessible single point of contact for all your staffing needs, ensuring that every team member, from temp to contractor, is aligned with your company’s goals and standards.
This means every contractor and temp you bring on board is vetted, onboarded, and managed according to a consistent set of protocols. No more wild variations in work quality or commitment levels; you get a uniformly reliable team, no matter how diverse the roles or projects.
Control comes from the MSP’s ability to provide a centralized management system for your contingent workforce. Instead of juggling contacts and contracts across a range of suppliers, an MSP gives you one point of contact, one contract, and one comprehensive workforce solution. This centralized approach eliminates the chaos of managing multiple vendors and contracts, giving you a clear, controlled staffing operation.
Improve Productivity and Performance
An MSP improves organizational productivity by ensuring that every member of your contingent workforce is not just a warm body in a seat, but a well-oiled cog in your business machine. A high-quality partner will craft a custom workforce strategy and optimize the allocation of your contingent staff to ensure that the right people are in the right roles. This strategic placement means projects move forward without the drag of underperformance, keeping timelines tight and deliverables on point.
Moreover, an MSP’s productivity extends to the administrative side of managing your team. They take on the time-consuming tasks of recruitment, vetting, and payroll, freeing up your internal teams to focus on core business activities. This division of labor means that while the MSP sweats the small stuff, your full-time employees can pour their energy into driving growth and innovation, rather than getting bogged down by the minutiae of managing a contingent workforce.
And let’s not overlook the MSP’s role in fostering a productive work environment. They’re the ones who ensure that contingent workers are not just satisfied but engaged, understanding that a motivated contractor is a productive contractor. They track performance, provide feedback, and manage disputes, keeping the work environment positive and focused. With an MSP, productivity is not just a buzzword; it’s a tangible outcome of expert workforce management.
How an MSP Can Help Companies Address Talent Shortages
When your talent pool looks more like a talent puddle, your workplace productivity and efficiency inevitably take a hit. A hard one. Straight to the head.
Without a pipeline of qualified employees to come into your organization and complete work, those employees you already do have on your team take on even more work, racing toward burnout and dismal employee morale.
In the face of talent shortages, an MSP is your ace in the hole. They’re not just recruiters; they’re your strategic workforce partners, armed with a deep bench of pre-vetted candidates and the industry clout to attract top talent that’s otherwise tough to pin down. They take the heavy lifting off your plate, managing the end-to-end hiring process so your team can stay focused on the big picture without burning out.
An MSP doesn’t just fill vacancies; they optimize your workforce, squeezing every ounce of value out of it. They’re the efficiency experts, using data-driven insights to predict staffing needs before they even arise and plug gaps before they become chasms. This means that by the time you need more talent, we already know where to find them. Your projects keep moving without a hitch, and your full-time staff aren’t stretched to breaking point.
Maintain Compliance with A Trustworthy Managed Service Provider
Navigating the complexities labor laws can be daunting, especially when each state seems to have its own rulebook (looking at you, California). Despite its challenges, labor compliance isn’t just a box to tick; whether your company remains compliant has tremendous consequences. We’re talking about fines and penalties, legal action, operational disruptions, and most importantly, your brand’s good name.
An MSP acts as your compliance sentinel, vigilantly overseeing the complex legal landscape that governs contingent labor. They’re the experts who stay abreast of the ever-shifting sands of employment law, from tax implications and insurance requirements to labor regulations and industry-specific compliance issues. This means you’re insulated from the legal quagmires that can ensnare companies navigating these waters alone.
With their finger on the pulse of compliance, MSPs ensure that every contract worker is hired and managed in line with current laws. This includes proper classification of workers, adherence to wage and hour laws, and ensuring that all necessary documentation is in order and audit-ready. They mitigate the risk of costly legal battles and fines that can arise from non-compliance, which is especially crucial when operating across different states or countries with varying regulations.
Furthermore, an MSP provides a clear audit trail of all your contingent workforce activities. They maintain meticulous records of every step in the contingent worker lifecycle, from recruitment and onboarding to offboarding. This not only prepares you for any potential audits but also instills best practices for compliance within your organization, creating a culture of accountability and diligence that can stand up to any scrutiny. With an MSP, compliance is not a hurdle; it’s a competitive advantage.
In short, non-compliance isn’t worth the risk. It’s a lose-lose situation that can be avoided with diligent practices and, often, the expertise of an MSP to navigate the complexities of labor law.
Why Per Sé MSP
Our team has been here and done this for years, for organizations just like yours. Beyond day-to-day management, an MSP often acts as a strategic consultant, advising organizations on long-term workforce planning. Whether it’s identifying future skill gaps or recommending process improvements, an MSP’s market intelligence can guide organizations in aligning their workforce strategy with business objectives.
Our managed services help you seamlessly improve business processes and increase productivity. We simplify your workforce management with a centralized, de-risked solution letting you get back to what you do best: growing your business.
Backed by our flexible and scalable platform, we offer valuable insights into your contingent workforce for a complete view of your organization. Integrated within Per Sé MSP, our cloud-based technology platform allows you to manage enterprise-wide talent with ease.
We reimagine your approach to talent management using cutting-edge technologies like artificial intelligence, machine learning, automation, and predictive analytics. Contact us today to learn more and get the most out of your workforce.