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When to consider a managed services program (MSP)

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When to consider a managed services program (MSP)

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Managed Services Programs (MSP) are a business solution where a company outsources the management of their contingent workforce. MSP partnerships have many benefits, including cost savings, process efficiencies and improved quality of hire in temporary workforce management. On average, MSP partnerships can deliver 10-20 percent cost savings in the first year.

The Hudson RPO talent experts have driven exceptional results in many different MSP partnerships. Based on their expertise, these are the four signs that tell you it’s time to consider an MSP.

1. Lack of talent vendor oversight:

Managing a contingent workforce often means managing multiple talent vendors and agencies. A lack of clarity around the size of the contractor workforce, who is employed, how much they are paid or how long they have been employed opens risks around costs and employment claims. If this resonates, an MSP can provide the solution you need.

Acting as a centralized point of contact, your managed service provider can streamline vendor processes, consistent performance, and reduce costs while providing one source of truth. This frees up time for you to focus on your core business with clarity and better insights into your contingent workforce.

2. Rising flexible workforce costs:

When scaling regionally or globally, managing costs associated with a flexible workforce can be challenging. If you find yourself with increasing costs without clearly understanding where the expenses are coming from, an MSP can help.

The MSP model of your choice will either centralize workforce management with one vendor or let the MSP handle vendor contracts. Your dedicated talent experts also bring expertise in optimizing cost structures and identifying cost-saving opportunities. Engaging a Managed Services Program provider will help you manage and control your contingent workforce costs.

3. Concerns about labor laws and compliance:

Navigating labor laws and regulations can be complex, especially when managing a contingent workforce across different regions. A managed services program can provide the necessary expertise to help you meet legal obligations and ensure compliance.

The talent experts in a managed services partnership bring a wealth of knowledge and understanding of legal requirements. They ensure your contingent workforce is compliant while managing the hiring process end-to-end. This opens up all the opportunities of a flexible workforce while minimizing risk.

4. Changing contingent talent needs:

Does your organization experience fluctuating talent needs due to project-based work, seasonal demands, or business growth? An MSP can offer the flexibility required to scale your contingent workforce up and down as required.

MSPs have access to a vast talent pool of qualified candidates and the ability to source talent promptly. They can help you build a dynamic contingent workforce with access to the right talent to drive your business success.

Is MSP right for you?

If any of the above signs resonate, it might be time to consider a Managed Services Program. Learn more about our MSP solution or speak to one of our talent experts today.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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What is a managed services program (MSP)?

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What is a managed services program (MSP)?

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MSP stands for Managed Services Program. It is a business model where a company outsources the management of its contingent (or contractor) workforce to a third-party expert. MSP partnerships drive cost savings, process efficiencies, and reduced risk through compliance. In our experience, an MSP partnership can deliver on average 10-20 % cost savings in the first year.

What does an MSP provide?

A managed services program provider takes care of your contingent workforce recruitment process, from recruitment of contractors to process optimization. Different models exist, and which one is right for you depends on your unique talent requirements and goals.

  • Direct Sourcing MSP Model

    In the Direct Sourcing MSP Model, one provider takes care of contingent workforce management and directly sources a percentage of the temporary workers. In this case, the MSP takes care of payroll with a single invoice for the client, and a single time-sheeting process for hiring managers and contractors.

  • Master Vendor Model  

    The Master Vendor Model involves one provider who is responsible for sourcing and placing candidates. The provider is also responsible for the contract management and payrolling of the contingent workers, including invoicing.  

  • Vendor Neutral Model 

    In the Vendor Neutral Model, one provider manages the contingent workforce but via third-party agency suppliers who continue to payroll their own contractors. 

With a commitment to data integrity, security and privacy, Hudson RPO’s contingent workforce solutions ensure on-going compliance, accuracy and risk mitigation for our client partners.”

- Carla Morris, Client Solutions Manager

How are MSP solutions customized?

As customized solutions, you decide the level of involvement you require from your MSP partner. Depending on your solution and service level agreement, a managed service partnership can include the following:  

  • Customized contingent workforce strategies based on industry insights  
  • Implementation of contractor management technology  
  • Streamlined onboarding and off-boarding  
  • Regional and multi-national labor law compliance

When should I consider an MSP partner?

A Managed Services Program is the right choice when you lack visibility, control and cohesion across your contingent workforce. In our experience, these are the common issues being experienced by companies who have since benefitted from an MSP solution:  

  • Lack of talent vendor visibility, control, and oversight.
  • Rising flexible workforce costs regionally or globally. 
  • Labor law and regulatory compliance.
  • Fluctuating contingent talent needs. 

Is MSP right for you?

Hudson RPO has been a successful provider of MSP solutions for many organizations. We saved over 380k AUD in the first 6 months of partnering with Australia’s biggest gambling entertainment company. Learn more about our MSP services or speak to one of our talent experts today.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

Follow Hudson RPO on LinkedIn

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What is MSP?

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Grow through a merger or acquisition with the right team

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Grow through a merger or acquisition with the right team

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Mergers and acquisitions (M&A) spark stress and often come with layoffs, mass resignations, and a handful of people left to hold down the fort… at least for a little bit. 

While you face daily operations with a reduced workforce, your talent acquisition (TA) team gets busy trying to fill vacancies. But the sudden exodus could lead to an unsustainable hiring urgency that quickly outpaces internal bandwidth. 

So, what do you do when M&A demands talent but you can’t hire quickly? We’re breaking down the potential challenges that come with M&A and how recruitment process outsourcing (RPO) can help you recover fast.

Mergers and acquisitions are around the corner

Industry consultancies and research firms are signaling a private equity (P&E) watershed (also known as “devesting”) soon. And we agree. Despite a quiet 2023, mergers and acquisitions are predicted to spike in late 2024 and early 2025. Putting a plan in place now will ensure a smooth transition if—and when—an M&A is at your door.

The M&A aftermath and your technology

These stressful transitions are notorious for layoffs and resignations. With fewer employees in-house to manage all the moving parts, you could be at risk for data breaches and lost information. Translation? Your greatest weakness could be the information technology (IT) department.

There are two major factors to consider: the cybersecurity risk and the knowledge gap.

The cybersecurity risk

No matter how employees leave—severance package or voluntary resignation—departures impact business. This is especially true in the IT department, where cybersecurity and systems require routine maintenance to ward off costly threats or issues.

When teams are strapped, even working longer hours isn’t enough to resolve every help desk ticket and patch updates needed to protect the network. It’s a perfect storm scenario for a cyber attack.

And broken workflows and a customer who needs to wait an extra business day are the least of your worries. It can also cost you millions and destroy customer trust. During M&A negotiations, there’s also a bigger risk for the buyer, which can cost jobs in the long run.

And there’s another looming issue, too…

The knowledge gap

Operations can grind to a halt when siloed knowledge walks out the door with your tech department. Even when processes are documented, being short-staffed makes productivity nearly impossible. Plus, the M&A might mean losing vital people who understand things no one else does—like someone who is an expert with your legacy IT system.

The knowledge gap impacts every customer and internal touchpoint, making running your business challenging.

Expect high turnover and layoffs

According to a study from the University of Pennsylvania, 47% of acquired employees leave within the first year after an acquisition. TA leaders and the C-suite start to wonder: 

  • How many people will I actually lose?
  • Will my most vital team members leave? 
  • Is there a way to mitigate interruptions to workflows?

While there are certainly many unknowns, one thing’s certain: you’ll lose people. But don’t worry—you have options and allies. 

The RPO solution

With key team members suddenly gone, knowledge gaps are just as obvious as empty seats—and avoiding immediate cybersecurity issues or broken systems becomes an urgent priority. 

When things get too tight on the inside, it’s time to find some slack. RPO can help. The Hudson RPO sourcing and hiring process includes: 

  1. Talent advisory. We look at turnover, brand reach, workforce engagement, and candidate drop-off so you can make fully informed decisions. 
  2. Talent sourcing. Get ideal candidates in your talent pipeline fast with our proactive reach across social channels, professional networks, and industry events. 
  3. Talent pooling. No more long waits for new hires to onboard. Our recruiters actively pre-qualify and nurture candidates, reducing time-to-hire. 
  4. Employer branding. Our team of experts helps you identify your employee value proposition (EVP) to attract the right candidates that fit the job description and your team culture. 

You can safely guide your workforce and company through uncertain times. And you don’t have to do it alone. What’s the old saying? “If you want to go fast, go alone. If you want to go far, go together.” 

You’ve got options

Whether you need a partner to support you with every facet of recruiting or just need additional help during a hiring frenzy, you’ve got options. At Hudson RPO, we tailor our offerings based on what you need.

  • Project RPO is a flexible, cost-effective option for organizations looking to hire quickly or find candidates for hard-to-fill roles. We collaborate with you to implement your project within a matter of weeks, helping you balance the need for immediate hires with your company’s long-term recruitment goals.
  • On-demand RPO is another flexible option that helps you scale your recruiting function—fast. Our rapid-response team helps you fill roles quickly when you experience a hiring surge, need more talent to support a new market, or just need to get things done faster than normal. We help you source, recruit, screen, and interview candidates.
  • Candidate sourcing is nonstop. Finding top talent, especially candidates not looking to leave their existing jobs, requires a partner who can build and maintain strong relationships with elite talent. It also requires a broad and global network that you can tap into when you’re ready to hire. At Hudson RPO, we use technology to map talent pools and find the best of the best talent out there, including passive talent.
  • Executive search. When you need to hire for the C-suite, not just any candidate will do. We partner with you to find and hire established and successful executives to fill a current role or pipeline for the future. Our team of executive search professionals know what to look for and take a holistic approach that yields high-quality C-suite candidates. 

No matter the capacity, Hudson RPO will work alongside you to fill the gaps and quickly get your tech team running with perfect-fit candidates. Contact us to learn more.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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Professionals Weigh in on Annual Bonus Satisfaction in Hudson RPO Survey

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Tampa, Fla., May 13, 2024 – A new Hudson RPO survey finds that when it comes to annual bonuses, many professionals are less than satisfied.

Nearly half of respondents (44%) say they are not happy with the amount of their bonus, and nearly a third (31%) say there is a lack of transparency about how bonuses are calculated. 

“Bonuses are a key compensation tool to reward employees and help with retention,” said Hudson RPO CEO Jake Zabkowicz. “However, if there’s a lack of transparency on how bonuses are calculated and a perceived lack of equity and fairness, bonuses could actually be a factor in employee dissatisfaction. That’s why a thoughtful, well communicated approach to offering bonuses is critical.”

More than three-quarters of respondents (76%) say that bonuses should be negotiated as part of their compensation package, but should remain confidential, as 75% say it’s not appropriate to share the amount of their bonus with colleagues.

According to the survey, bonuses can help with retention, but only to some extent. Nearly two-thirds (64%) say that if they wanted to quit their job, they still would but they’d wait until after they get their bonus.

“Compensation, including bonuses, remains an important part of employee satisfaction, but retention efforts should be more holistic, including opportunities to learn, grow and develop,” said Zabkowicz.

While the majority of respondents say bonuses are paid out in the spring, 29% percent say they receive their bonuses at other points during the year.

About the Survey: The global survey of nearly 400 professionals took place in May 2024.

Survey results

Are you eligible for an annual bonus?

  • Yes: 92%
  • No: 8%

What timeframe is your bonus typically paid out?

  • March/April: 55%
  • End of Calendar Year: 10%
  • End of Fiscal Year: 6%
  • Other: 29%

If you wanted to quit your job, would you wait until after you receive your bonus?

  • Yes, I’d wait for my bonus then quit: 64%
  • No, I wouldn’t wait for my bonus if I really wanted to quit: 36%

Should you negotiate your bonus as part of your compensation package?

  • Yes: 76%
  • No: 24%

Is your employer transparent about the way bonuses are calculated?

  • Yes to a great extent: 21%
  • Yes to some extent: 47%
  • No: 31%

Do you think it’s appropriate to tell co-workers the amount of your bonus?

  • Yes: 25%
  • No: 75%

Are you happy with the amount of your annual bonus?

  • Yes to a great extent: 13%
  • Yes to some extent: 29%
  • No to some extent: 22%
  • Not happy at all: 22%
  • I don’t get an annual bonus: 14%

About Hudson RPO

Hudson RPO is a leading global provider of flexible and scalable recruitment solutions. We service all levels of client organizations, from entry-level to the C-suite, focusing on mid-market and enterprise-level organizations worldwide. Taking a consultative and collaborative approach, we partner with talent acquisition, HR, and procurement leaders to build diverse, high-impact teams and drive business success. Learn more at hudsonrpo.com.

Media Contact

Tracy Kurschner
[email protected]
612.309.3957

Rachel Marshalsea Joins Hudson RPO as Director, Client Solutions, EMEA

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Tampa, Fla., May 1, 2024 – Hudson RPO (“Hudson”), a leading global total talent solutions company owned by Hudson Global, Inc. (NASDAQ: HSON), today announced that Rachel Marshalsea has joined the firm as Director of Client Solutions, EMEA. In this role, Marshalsea is focused on expanding Hudson’s client base in the region and enhancing the services and offerings the Hudson teams bring to clients.

Most recently she was a Partner for a London-based executive search firm, where her role included expanding their Executive RPO offering and strengthening their overall sales capability. Prior to that, she led the Embedded Talent division for a European Tech Search firm, which supported startups and scaleups with project-based hiring across Sales, Product, and Engineering.

“Rachel brings a balanced blend of commercial, strategy and operational delivery,” said Hudson RPO CEO, Jake Zabkowicz. “This background, combined with her extensive experience in talent acquisition across RPO, MSP, and project-based hiring, makes her uniquely qualified to lead our growth and expansion efforts in EMEA, augmenting the results we are already providing for clients in the region.”

Marshalsea previously lived in New York, where she was Managing Director for a U.S.-based RPO & MSP firm. She managed a portfolio of banking and financial services clients, successfully broadening delivery across the U.S. and into global regions including EMEA and APAC. During her 8-year tenure, she concurrently held a senior leadership role at the firm, transitioning the company from startup to scaleup. She currently resides in London.

About Hudson RPO

Hudson RPO is a leading global provider of flexible and scalable recruitment solutions. We service all levels of client organizations, from entry-level to the C-suite, focusing on mid-market and enterprise-level organizations worldwide. Taking a consultative and collaborative approach, we partner with talent acquisition, HR, and procurement leaders to build diverse, high-impact teams and drive business success. Learn more at hudsonrpo.com.

Media Contact

Tracy Kurschner
Global Communications Manager, Hudson RPO
[email protected]
612.309.3957

The China talent outlook for 2024

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The China talent outlook for 2024

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With Talent Expert, Mia

We recently asked Mia Lin, Client Solutions Manager, our China-based talent expert, to share her views on the talent outlook in China for 2024.  

The China talent market is facing the juxtaposition of both a pressing demand for skilled technical workers, as well as an oversupply of graduates and white-collar professionals. Nevertheless, experts maintain an optimistic outlook on employment and incomes in 2024 while company profits recover. We asked our talent expert Mia Lin, what it means for employers in 2024.  

Today's employers are not just seeking to fill positions; they're committed to actively building a workforce that possesses the skills necessary for the future. This shift underscores a deliberate effort to invest in and nurture a dynamic pool of talent that helps organizations thrive in a changing world.”

— Mia Lin

The top skill sets in demand

China is still facing an oversupply of both university graduates and white-collar workers. According to Mia, skill shortages in new energy, intelligent manufacturing, and the semiconductor industry will particularly stand out when looking at increased needs for talent.

  • Electric vehicles

    China passed Japan as the world’s largest automotive exporter in the first quarter of 2023, thanks to its growing dominance in electric vehicles. Battery-powered vehicles will account for 30 per cent of China’s total car exports this year. Car design and manufacturing-related roles are in particularly high demand.

  • Intelligent manufacturing

    The Chinese government has set out to become the world’s largest intelligent manufacturing application market. Shortages of talent with the right digital skill sets in intelligent manufacturing are forecast to grow to 5.5 million by 2025. 

  • Semiconductors

    Last year, China ramped up efforts to develop home-grown semiconductor talent. Despite an increase in university enrolments in industry-funded courses, and an influx of talent recruited overseas, China is battling a shortage of an estimated 200,000 industry workers.  

Attracting talent

In a market where employers are competing for talent, employers are turning to offers such as flexibility, job stability, and increased salary packages.  

“Today’s top talent is discerning in their career choices, placing heightened importance on factors such as work stability, a genuine care for employees, and flexible working arrangements in both time and location. In a dynamic job market, attracting talent requires a comprehensive approach that goes beyond traditional compensation structures. It involves a holistic package that aligns with their desire for stability, a supportive workplace culture, and flexible work models.” 

Trends to watch

In addition to employers reviewing their offerings to attract more talent, Mia recognizes some additional trends across the China talent market for 2024:   

  • Digitalization and technology talent demand

    Accelerated digital transformation across sectors is driving demand for professionals in the highly competitive areas of artificial intelligence (AI), big data, data security and software/hardware.  

  • The flexible workforce

    As the global economy remains unpredictable, many organizations are looking to cut costs. Flexible work models with contractors (also known as a contingent workforce model) will be mutually beneficial for organizations and early- to mid-career talent looking to build their skills while leveraging more flexible ways of working. This trend was looked at closely by our Talent Expert Lucy in our UK talent market outlook.

  • Soft skills

    Amidst skill shortages, more organizations will turn to a skills-based approach to hiring and development pathways for talent already in their organization. As such, soft skills become more important, particularly resilience, a learning mindset, and the ability to multi-task are highly sought after. 

The talent market in China 2024, will see a skills-driven talent market with a large focus on employee benefits and technological advancement. As we’ve seen in previous years, the dynamic talent market can turn quickly, and adaptability and the backing of a strategic recruitment partner are key to staying ahead of the competition for talent.

Mia Lin, is highly experienced in the recruitment industry and has a deep understanding of organizational needs and the benefits an RPO can bring. Mia works with clients across the China region to transform their talent functions and shape the future of their businesses to achieve exceptional outcomes.  Do you want to talk about your hiring plans for 2024 in more detail? Get in touch with our experts here. 

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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