MANAGED SERVICE PROVIDER
A COMPLETE SOLUTION FOR FLEXIBLE RECRUITMENT

What is an MSP?

All external, temporary personnel requests, supplier contacts, administrative processing and budget monitoring are managed and monitored by the party that provides the MSP. The main added value of an MSP are cost savings, process optimisation and insight, compliance and attracting and accessing the best temporary talent.

The MSP is neutral and considers all stakeholders such as hiring managers, supplier technology and systems to create a level playing field for competing suppliers, resulting in the best service at a competitive price.

MSP solutions have become increasingly popular over the past decade in the complex world of hiring because of time and cost savings, while taking into account skills, costs and trends.

The benefits of an MSP

An MSP maximises supplier value and access to the best temporary talent, including experts who can add real value to your business. It also helps reduce costs, apply legislation, and align temporary talent with broader strategy.

• Time- and cost-saving Streamlined processes to reduce both time to hire and costs for hiring managers: MSPs negotiate rates and apply legislation such as the DBA Act. Pay benchmarks keep rates competitive, and internal administration costs are eliminated through standarisation.

• Management of suppliers based on the most relevant factors for you such as the quality of candidates and faster turnaround time of hiring.

• Risk reduction Implement controlled and standardised processes to reduce risks related to sourcing and hiring.

• Pre-selection and smooth on- and off-boarding of External Resources by Hays.

• Full compliance in terms of temporary hiring liability, Pre Employment Screening (PES), the DBA Act and internal guidelines in areas such as intellectual property and security.

• Resource desk on-site A Resource Desk is set up by Hays, often on-site, with highly experienced specialists in your sector. Hays concludes agreements with preferred suppliers and manages strategic vendor relationships on behalf of the client.

Why Hays?

For over 20 years, Hays has been offering innovative recruitment solutions tailored to medium-sized and large organisations worldwide. Our extensive experience in the field of outsourced recruitment enables us to quickly get to the heart of the matter in every challenge, to define pain points and to provide intelligent tailor-made solutions.

FREQUENTLY ASKED QUESTIONS

What are the benefits of an MSP?

An MSP has several advantages. The most important added value of a managed service programme service is: cost savings, reduced time to hire and other process efficiencies, improved access to top talent, risk control, increased compliance and more informed resourcing decisions. For more information on the benefits read our guide.

How many temporary or contract workers do I need to be using to justify using an MSP?

An MSP may cover anything from 150 workers to 10,000 workers. Typically you'd be looking for your spend to be at least £3 million per annum.

What are the average savings to be made by an MSP?

On average, an organisation can release at least 5 - 15% savings on its external temporary recruitment by setting up an MSP.

Can I maintain contact with my current suppliers?

Yes, depending on the need, your MSP will jointly agree with you how supplier management is organised. 

What is a Vendor Management System (VMS)?

The abbreviation VMS stands for Vendor Management System. It is the technology which supports and automates the processes of an MSP programme from request to invoicing. 

How do you get internal buy-in / create support for an MSP solution?

To create internal support for an MSP solution it is key to set up a multidisciplinary steer-co / team, including HR, Procurement, as well as line management from the teams which hire the most temporary resource during the tender phase. This project team ensures the most important perspectives are taken into consideration, and your key stakeholders are in agreement before the solution is chosen. Support, clear and unambiguous communications are essential for a sustainable outsourcing solution. For more information on how to build your business case read our guide.

What are the differences between the different MSP models that are available?

The most common MSP models are: Master Vendor MSP, Neutral Vendor MSP and the Hybrid MSP. 

With a Master Vendor model, a single supplier is used for managing and completing your temporary and non-permanent external hiring needs. With a Neutral Vendor MSP your solutions provider will manage several agencies for filling your requisitions. The Hybrid MSP is a combination of the Master Vendor and Neutral Vendor MSP model; typically this will see different approaches based on the region, function and business unit. To discover which model is right for you read our guide.

Is MSP only suitable for big companies?

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