A Managed Service Provider (MSP) can be a powerful ally for assisting with your recruitment and contingent workforce management needs. However, you also gain much more. In the majority of cases, partnering with an MSP can help your business substantially reduce its costs.
Many companies experience both soft and hard cost savings. With that in mind, here’s a look at five ways you can cut costs by partnering with an MSP.
1. Reduce Hiring Inefficiencies
Hiring can be a cumbersome process. After a job ad is placed, the hiring manager has to step away from their duties to shift through the onslaught of applications. Next, they have to spend more time scheduling and conducting interviews. Then, there’s additional screening for top contenders, such as background and reference checks. Finally, they have to create and present an offer and coordinate the onboarding process.
Ultimately, this process takes a significant amount of time and energy. Plus, it pulls your staff away from their core duties, harming productivity.
By working with an MSP, these hiring inefficiencies are reduced. The MSP can handle most (if not all) of the steps above, leaving your permanent employees and managers free to manage their core responsibilities.
2. Speed Up Recruitment
Having a vacancy harms productivity. Considering that the recruitment phase can be lengthy, a team may be shorthanded for weeks or even months.
With an MSP, recruitment times are reduced. A skilled MSP maintains a strong talent pipeline, much of which has been prescreened to ensure they can meet their needs. This allows vacancies to be filled with qualified talent quickly, enabling you to return to full productivity as soon as possible.
3. Reduce Risk and Exposure
When you hire on your own, you take on a substantial amount of risk and exposure. You have to deal with a range of costs, such as workers’ compensation and unemployment, as well as any additional fallout that results from workplace injuries or compliance issues.
By partnering with an MSP, your risk and exposure are reduced. Contingent workers remain on the MSP’s payroll, eliminating many costs and the associated administrative burden.
4. Lower Personnel Costs
As mentioned above, contingent workers through and MSP remain on the MSP’s payroll. This lowers your labor costs, as you aren’t responsible for expenses like workers’ compensation or unemployment. Additionally, financial obligations like vacation and sick leave aren’t yours to shoulder, either.
However, those aren’t the only cost-reducing benefits. Often, your onboarding and training costs also decrease when you partner with an MSP that provides those services. Candidate screening can similarly be less expensive when it is part of your MSP agreement.
5. Leverage Analytics
Most MSPs use cutting-edge systems to manage your contingent workforce. As a result, they can assist with data-driven decision-making. For example, analytics allow them to identify redundancies while forecasting future needs. This increases overall efficiency while reducing your spending.
Ultimately, an MSP can help most businesses cut costs. If you’d like to learn more, the experienced staff at Apogee Managed Solutions can help. Contact us to speak with one of our MSP specialists today and see how our services can benefit you.