True or False: Finding the right person for the right job is now easier than ever. True. It is now possible and more accessible for companies to recruit from a global talent pool thanks to the rise of remote work.
But there’s a catch—the same is also true for your competitors.
So now a new challenge arises: how can you keep your talent recruitment ahead of the curve?
From this challenge comes even more questions: Is there a way to streamline the process to make it easier and more efficient? How about dealing with compliance and talent quality at scale?
This is where Managed Service Providers and contract recruitments come in.
What’s a managed service provider (MSP)?
A Managed Service Provider or MSP is a company that specialises in offering various services to manage and oversee specific aspects of companies’ operations.
A popular example would be an MSP that would cover your I.T. systems’ stability, security, and performance.
But why hire an external team to handle some operations?
One major benefit is that you’re essentially hiring expertise on a specific operation. An MSP that specialises in talent acquisition, for example, can help you streamline your recruitment operations. Today, companies can also hire an MSP to manage their contingent workforce, helping them reduce costs, increase efficiency, and get the most out of their talent.
Here are other big ways hiring an MSP can benefit your company:
- Compliance is ensured
No need to worry about constantly keeping up with changes or updates in compliance regulations. Your hired MSP can help your company navigate through complex regulatory requirements. They can help you manage and avoid risks when hiring talents remotely—ensuring full compliance for both ends.
- More agile workforce
If your company is the type that experiences fluctuating demands, MSPs can help you scale up or down—depending on your needs at that moment. For example, having an external team with different specialists for different needs can help you respond to different workload changes.
- Assistance with recruitment agency management
MSPs can also act as your ‘middlemen’ between you and multiple recruitment agencies. They can manage relationships with those agencies and negotiate contracts. Some MSPs, like CXC, even handle the recruitment too so you don’t have to deal with too many agencies.
Also known as temporary staffing, this arrangement happens when a company only needs specific talent for a fixed time frame or for a specific project. This is extremely useful for covering workforce gaps or meeting immediate short-term needs.
Some benefits of contract recruitment include:
- Workforce flexibility
Contract recruitment is super useful if you need to quickly adjust your workforce size based on your current needs. Specific project-based work and seasonal fluctuations are two things contract recruitment can help your company with.
Your contract workers aren’t entitled to the same benefits as your permanent employees. Examples of these benefits would be healthcare and paid time off. This reduces overhead costs while ensuring the job gets done.
- Minimised project delays through rapid hiring
The hiring process for contract workers is more streamlined compared to hiring regular employees. This can help your company fill positions quickly, minimising project delays.
Problem 2: Zero integrated workforce management strategy
In companies that haven’t developed a centralised, strategic plan for engaging and managing contingent workers as part of their overall workforce management plan, major headaches tend to arise for the CHRO.
Without a centralised management strategy for your contingent workforce, your company (and your desperate CHRO) will encounter issues such as:
- Ad-hoc hiring by line managers, placing the business at risk of misclassification, as well as a host of other avoidable risks.
- The inability to provide the business with the talent it needs when it needs it.
- Zero access to quality contingent worker data. Most likely, if you haven’t established a centralised management strategy for these workers, you’re unlikely to be supported by the right technology or data to help you make the best talent decisions.
- Poor adoption of company policies and procedures when it comes to vetting, hiring and onboarding contingent workers. This may include poor clarity of contingent workers’ contracts, unclear responsibilities for the worker, and non-adherence to privacy and company non-disclosure agreements.
- Contingent workers will be less likely to feel part of the company or the project team, as the management of them, without the right strategic approach in their engagement, will likely also be makeshift.
- MSPs maintain a pool of pre-screened candidates
- These candidates include both permanent and contract workers. Having a talent repository makes it easier and faster for you to find the talent your company needs when you need it.
Additionally, MSPs have service level agreements (SLAs) with recruitment agencies. This ensures that candidates meet your quality and skill criteria—giving you the best of the best to choose from.
- Your hired MSPs negotiate rates with contractors and agencies
MSPs not only get you the talents you need, but they do so at the right rates for you. They negotiate contracts and rates with recruitment agencies and individual contractors to ensure cost-efficiency when hiring talents.
- They will keep track of the crucial metrics for you
MSPs will give you important insights into your recruitment performance through their reporting and analytics services.
Some of the key factors they carefully monitor are time-to-fill, cost-per-hire, and candidate quality. You can then use these insights to make more data-driven decisions.
- They will take care of the administrative tasks
Managing a contingent workforce means dealing with additional administrative tasks. Contract recruitment agencies and MSPs will actually handle those tasks for you. They’ll shoulder tasks such as payroll, benefits, and compliance.
Also, MSPs can handle the onboarding process of your contract workers. They’ll ensure your contract workers are properly oriented and possess the necessary tools and access for their tasks. When contracts end, MSPs will also manage the offboarding process—further freeing your hands to focus on other operations.
- You will be able to hire specialised skills for specific projects
You’ll always have tasks that’ll need someone with more expertise. Digital marketing, web development, data analysis, or even content creation all need more specialised skills.
Additionally, project-based tasks such as website redesigns or app development don’t really need permanent or full-time staff to accomplish, right?
This is where contract workers shine. They can fill in these specific roles to work on your specific projects without you having to hire permanent staff.
- Access to a diverse talent pool
Contract recruitment opens you up to a world full of diverse talents. Is your team creatively stumped? The global talent pool is rich with different backgrounds and experiences. Someone from across the world has the ideas and the skills that you’re looking for—and you can work with them even though they’re miles away.
Access to a diverse talent pool also means you can experiment with different roles and functions. And since contract workers are temporary, you have enough room to adapt quickly according to your market conditions.
CXC is your friendly neighborhood MSP
Here’s a great place to start your journey into building your remote workforce. Our team will handle all the work when it comes to workforce recruitment, management, and compliance—so you don’t have to. Instead, you can focus on working with them to flesh out your deliverables and hit your targets,
Skip the growth pains of expanding your workforce to the global level. Stay on the competitive edge of talent recruitment. Contact CXC today.