The traditional MSP model needs a shakeup

For 20+ years, companies have turned to MSP and VMS solutions to manage their contingent workforce. But Staffing Industry Analysts’ NPS data shows a declining trend in customer satisfaction—the traditional approach is falling short of expectations. The proliferation of new tools, sourcing channels and contingent worker engagement techniques is driving a desire for more.

Our Head of Enterprise Solutions and MSP expert, Cameron Robinson, shares his insights on the MSP market and state of contingent workforce management.

Looking outward at the market, we’ve seen the desire for more innovation and service evolution commonly play out in one of three different scenarios:

Elements of contingent worker attraction and management are utilised by companies but outside their MSP program. Like when “direct sourcing” in the customer’s brand is considered in conflict with MSPs where their primary responsibility and primary revenue model is based on recruitment agency supplier management.
Companies with incumbent traditional MSP models are slow to pivot, adapt and incorporate new solutions. The result is lost ground to more agile competitors
Companies choose to go it alone, so to speak, and build their own version of contingent workforce management in-house.

There are serious drawbacks to all of these situations. There is another way though. The Managed Service Program concept isn’t dead. It just needs a shakeup. We need to rethink of MSPs in the context of what they’re designed to do – contingent workforce management – instead of what many have largely ended up doing, which is order taking.

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The MSP model of the future is Solve’s MSP model of the present. A contingent workforce team needs to be freed from the perception as an administrative function or a procurement instrument and empowered to be a strategic business division.

Managers need to feel like an MSP program is for them, not being done to them. They’ve got work to do and how they utilise contingent workers needs to make sense.

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Candidates and contingent workers need know their experiences, their wellbeing and their success in their assignment are all a priority.

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HR and talent acquisition teams need to know their internal stakeholders are compliantly equipped with the exceptional people they need to get great work done.

While procurement and finance teams need to know that the business can sustainably and reliably improve its commercial position year-on-year without sacrificing speed, quality, compliance or agility.