Employers often rely on companies that provide vendor management services to help them with the often burdensome task of finding temporary employees. This can help eliminate the time-consuming process of managing multiple staffing vendors on their own time. These agencies can provide vendors in a variety of locations, using one single point of contact, which can simplify the entire temporary staffing process.
By definition, a Managed Service Provider (MSP) is an outsourced agency that manages the contingent worker program, otherwise known as temporary staffing, of a client company by effectively managing their preferred staffing agencies. It consists of teams of program managers and coordinators that enables the client company to better source and manage temporary workers from any of their preferred sources.
This is perhaps the easiest way to find qualified staffing when needed from local agencies nationwide. This is also a good way to measure the quality of service that staffing companies are providing. But it takes a lot of effort from the client-side to manage the hundreds of staffing vendors that some of the bigger companies may be using.
Many MSPs originated from staffing companies
A lot of these MSPs were formally divisions of staffing companies born out the need of employing agencies that had some expertise when it came to managing these types of programs. Obviously having a background in providing temp staffing services can make understanding the intricacies involved much less difficult. However, for the most part, they are mostly vendor-neutral, meaning they’re not allowed to show favoritism to their mother companies in any way. Like any other company, there are certain risks and exposures involved, and staffing insurance is a way to mitigate any existing risks.
The point of having this process in place is to have the ability to find the best candidates for the staffing agency by focusing on speed, cost, and reliability. This process has been shown to increase efficiency, reduce cost and, naturally, increase competition. While everyone in the business may have access to the same information, which makes the playing field level, for the most part, the most competitive vendors will often come out on top. Having vendor management services in place can make a difficult task that much easier, and frees managers up to focus on other, equally important matters.