Implementing a management solution for a temporary workforce can be achieved in numerous ways. There are three common configurations:
Sole or Master Service Program
In this contingent hiring solution, the company engages a single managed service provider (MSP) to oversee the end-to-end temporary workforce process, including the acquisition and management of 90 to 95 percent of contracted hiring vendors. This solution offers the most cost savings, but it is reliant on a single provider to manage contract labor.
The Hybrid Solution
With this model, the client engages an MSP to manage contingent labor, but it is not doing the majority of candidate sourcing. The MSP may source a particular job family, business unit or geography, but the remaining roles are distributed out to a supply panel that has been approved by the client. For maximum effectiveness, it is generally important that the MSP sources a clearly delineated job category. Risk is spread among the supporting group of suppliers, and this method still drives significant cost savings.
The Vendor Neutral Model
For this solution, the MSP does not source contractors across any categories of jobs. Its function is to purely serve as a governance entity, managing the end-to-end process and overseeing the performance of all hiring vendors. This model eliminates all conflicts of interest between the MSP and the supply panel. While it doesn’t drive quite as much cost savings as the prior models, it provides the most objective process.
Benefits of Contingent Workforce Solutions
Whichever solution model best suits the deployment of a temporary workforce for a particular firm, the benefits of contingent workforce management are numerous:
- Supplying and adjusting a quality contingent workforce responsive to changing capacity and skill demands
- Mitigating and reducing compliance risk
- Enhanced visibility, control and management of costs
- More effective service
- Total cost reduction and lower cost-per-hire
- A single point of accountability
Determining the proper solution for the management of an organization’s temporary workforce begins with selecting an appropriate approach.Get In Touch