One of the questions I hear from organisations is: “How do we know when it’s time to consider an MSP model?  

It’s a fair question, and an important one. Changing how you manage your contingent workforce isn’t just a tactical decision; it’s a strategic shift. But it doesn’t have to be overwhelming. In fact, there are clear signs that indicate when your current model may no longer be serving your business. 

When to consider MSP: Improving the way you manage your contingent workforce program   

MSP is about embedding expertise inside your business to improve the way you source, engage, on-board, manage and off-board contingent workers (i.e. temps and contractors) and the agencies that supply them. It’s not just for organisations with thousands or even hundreds of contractors, it can add value to companies with 30 contractors or more. Here are some triggers I’ve seen that prompt organisations to explore an MSP model and what each one means in practice. 

You want to reduce costs

If you’re concerned about any of the following, it might be time to consider an MSP: 

• Pay rates for temps and contractors are above market and/or not managed effectively
• Agency margins are their on-costs are not competitive or are inconsistent  
• Compliance to your preferred supplier panel is low, increasing “off panel” spend
• Contractor extensions and conversions are not managed or approved appropriately   
• You have contractors above 12 months tenure still attracting an agency margin
• You have headcount deployed to managing many agency contracts, invoices and doing reconciliations 

The MSP model we offer is MSP and Supplier funded, meaning there are no upfront costs for you, and you start saving money from MSP commencement. 

It’s currently managed by your business who have better things to do 

If you are doing all the heavy lifting this can prevent you from focusing on more important responsibilities. An MSP can do all the leg work managing the end-to-end process, from job brief, to shortlists, offers, on-boarding, extensions and conversions to permanent, all while owning contracts, invoicing and reporting, and ensuring compliance to the preferred panel, pay rates, margins and on-costs.  

You are not getting the contingent talent you need to run your business

When roles go unfilled or take too long to fill, productivity and revenue suffer. An MSP manages the end-to-end process, ensuring roles are filled quickly with the right talent, using advanced direct sourcing techniques and a high performing supplier panel. Hudson also brings their talent data base to the solution, ensuring there are suitable candidates to short-list from day one. 

Your panel isn’t performing

If you’re working with multiple agencies but getting inconsistent results, an MSP introduces governance, accountability, and performance tracking so you get the best from your recruitment suppliers. 

You are concerned about risks 

There are many risks associated from managing your contingent workforce, from co-employment risks, to ensuring appropriate tax payments and insurance coverage to OH&S concerns.  An MSP ensures compliance with policies, processes and legal requirements, reducing your exposure to risk.  

Onboarding needs improvement

An MSP includes onboarding management, ensuring new contractors are engaged, productive, and retained from day one, regardless of the agency that finds them. 

Simplicity 

An MSP often results in a single contract and a single invoice for you to manage, versus the dozens needed with a preferred supplier panel model. In most cases, the MSP owns the contracts with the preferred supplier panel, on behalf of the client. You still retain ownership of all important decisions but delegate the “doing” to the MSP. One contract, one invoice, one report that covers your entire contingent workforce.   

Final Thought: Change starts with a conversation 

If any of these challenges sound familiar, it might be time to rethink your contingent workforce model. Regardless of your pain points, the right solution can help you address your challenges and access the talent you need to successfully run your business.  

Let’s talk talent 

If you’d like to explore whether an MSP model could benefit your organisation or simply want to understand what’s possible contact me today. I’d be happy to help you assess your needs and design a solution that fits. 

Kimberley Hubble – Head of Talent Solutions
kimberley.hubble@hudson.com
0416 270 642