What is an MSP in Staffing?

June 9, 2023

As organizations increasingly rely on contingent workers to meet their dynamic staffing needs, MSP Staffing Services have emerged as a critical solution for managing this complex workforce. In today's competitive business environment, companies must be agile and responsive to ever-changing demands. MSPs, specialists in managing contingent labor, offer a way to keep up with the ever-changing demands of business.

By leveraging the expertise of Managed Service Providers (MSPs) to optimize contingent workforce management, this article will explore how organizations can benefit from implementing such a program and common challenges associated with managing a contingent workforce internally.

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What is an MSP in Staffing?

A Managed Services Provider (MSP) is a strategic firm that manages a client company's contingent workforce. One type of an MSP are staffing agencies. Partnering with an outsourced provider, who acts as the intermediary between the client company and candidates, ensures that all hiring and HR processes are streamlined, efficient, and compliant. These are also known as staffing agencies.

Is partnering with an MSP right for you?

If you're in the market for hiring IT personnel, you may be questioning whether teaming up with a managed service provider (MSP) is the optimal decision for your company. MSPs provide numerous advantages that can aid in simplifying the recruitment process and enhancing the caliber of new hires.

How to Evaluate

To determine whether taking on MSP staffing services makes sense, ask yourself the following questions:

Do You Need Access to a Larger Pool of Talent?

Is Your HR Team Overwhelmed by Recruitment Tasks?

Are You Struggling to Find Qualified Candidates In-House?

Losing Control Over Staffing Process: Do you mind losing some degree of control over the hiring process and contingent workforce management?

Key Performance Indicators to Consider

Time-to-fill: How long does it take to fill a position? A shorter time-to-fill means you're sourcing talent more efficiently.

Talent quality: Are the candidates you're sourcing meeting industry benchmarks or internal requirements?

Labor spend: How much are you spending on contingent workers? Are there areas where you can save?

Risk management: Are you compliant with relevant laws and regulations?

Satisfaction rates: How do managers and workers feel about your current program?

If, after evaluating these factors about your staffing process, you decide that partnering with an MSP is right for your organization, it's important to choose the right provider.

In conclusion,

An MSP can be a valuable partner when it comes to IT staffing needs. By outsourcing recruiting tasks like sourcing resumes and conducting initial interviews, they save time while providing access to specialized expertise, which helps clients fill positions faster than traditional methods.

How staffing through an MSP works?

If you're looking to outsource your staffing needs, working with an MSP partner can be an excellent solution. MSPs offer comprehensive services that can help streamline the hiring process and save time and money for businesses.

The Process

After deciding on an outsourced agency to work with, the provider will create a customized solution based on your requirements, which may include:

Recruiting, background checks and screening candidates

Onboarding new employees

Training staff members

Managing the entire staffing process from start to finish

This means that once you've agreed to the terms of service, the MSP staffing services intake everything related to staffing within your organization. They'll source candidates, fill positions as needed, and ensure that all employees are trained according to your specifications.

Components of an effective MSP

Talent acquisition: An MSP helps organizations source top-quality candidates by leveraging their extensive network of suppliers and recruitment agencies.

VMS technology: A vendor management system (VMS) streamlines the entire hiring process by automating tasks such as job posting distribution, candidate tracking, and reporting.

Data analytics: MSPs use data-driven insights to optimize contingent workforce strategies in areas like cost control, risk mitigation, and overall effectiveness.

Risk management & compliance: An essential component of any successful MSP is ensuring full adherence to local laws governing worker classification and employment status while minimizing potential risks associated with non-compliance.

Benefits of implementing an MSP in your organization

Better access to talent: MSPs can tap into a broader pool of skilled professionals through their established relationships with staffing suppliers across various industries.

Cost savings: By consolidating multiple vendors under one umbrella contract managed by the MSP provider, you can achieve economies-of-scale that result in lower costs per hire.

Increase efficiency: With streamlined processes and centralized management, organizations can save time and resources by reducing the administrative burden associated with managing a contingent workforce.

Improved compliance: MSPs help mitigate risks related to worker classification and employment status by ensuring adherence to local laws and regulations.

In the current cutthroat business environment, opting for an MSP can offer considerable benefits in terms of securing high-quality talent while keeping expenses low. Collaborating with a reliable provider such as Biblioso, which delivers customized solutions based on individual client requirements, guarantees that your company will profit from their proficiency in swiftly sourcing top-notch talent while adhering to all applicable laws and regulations.

FAQs about MSP Staffing

What is MSP in staffing?

MSP stands for a Managed Service Provider. Companies outsource the management of temporary staff, freelancers, and independent contractors to MSP's.

What is the difference between MSP and VMS in staffing?

MSP (Managed Service Provider) refers to the service provided by an external firm for managing contingent labor, while VMS (Vendor Management Systems) is a platform used by organizations or MSPs to manage workers from multiple suppliers efficiently.

What is the difference between MSP and RPO?

Managed Services Providers (MSP) focus on managing an organization's non-permanent workforce such as freelancers or contractors, while Recruitment Process Outsourcing (RPO) deals with permanent employee recruitment through an outsourced provider.

How much does an MSP cost?

MSP staffing services costs is different from company to company. Generally, MSP's charge a markup fee for temporary staff managed. Although some offer volume based discounts, typically these fees range from 25%-75% depending on the employee's wage.


So, the question is, what is an MSP in staffing? An MSP that meets your specific needs and objectives can deliver improved efficiency and cost savings, while also boosting overall productivity.

Key components of an effective MSP program were discussed.

KPIs to consider when evaluating your existing program were outlined.

Don't let poor contingent workforce management hold your organization back - take advantage of crucial MSP staffing services today with Biblioso!

If you're a job seeker, and want to view current openings you can be quickly placed in, view our current openings here.

We build and manage your workforce, on your terms, so you can focus on growth.
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