A Managed Service Provider (MSP) in workforce context oversees a company's contingent labor program. They manage relationships with staffing suppliers, ensure compliance, provide reporting, and optimize the contingent workforce. MSPs bring expertise and efficiency to complex programs.
MSP Functions
Typical MSP responsibilities include managing a network of staffing suppliers, distributing job requirements to appropriate vendors, overseeing worker onboarding and offboarding, ensuring compliance with policies and regulations, providing workforce analytics, and managing technology platforms.
Benefits
MSPs help organizations gain visibility into contingent spending, ensure consistent processes across suppliers, reduce compliance risk, negotiate better rates through volume, and access workforce data for decision-making. They are most valuable for large or complex contingent programs.
MSP and EOR
Some organizations use both MSPs and EORs. The MSP manages the overall contingent program while EORs handle specific employment needs, particularly for international workers. Integration between programs ensures comprehensive workforce management.