What is the meaning of an MSP?
MSP is the abbreviation for Managed Service Provider. Within Resource Management this abbreviation is used for HR processes. From interim and secondment to self-employed contractors: MSP forms an umbrella term for all activities surrounding the recruitment, selection and management of temporary personnel by the party that provides the MSP.
What is an MSP?
Een MSP is a service provider that relieves the client during the hiring process. When organizations frequently hire external, temporary workers and work with different suppliers there is a fragmented hiring process. To save time and energy organizations can hire an external party: the MSP. When an organization engages an MSP the MSP becomes responsible for the organization's internal hiring process. An MSP manages and monitors the following processes:
● The drawing up of a capacity plan and budget monitoring
● Pre-selection and screening of candidates
● Contract management and compliance with laws and regulations
● Supplier management
● On- and
offboarding
In short: an MSP is responsible for managing the hiring process of temporary, external employees. The main objectives of an MSP are cost savings, process optimization and securing the best temporary talent. For many organizations, an MSP is a partner that, in the long term, elevates the hiring process of external employees.
The five benefits of an MSP
An MSP brings many advantages with it. We list a number of them:
1. Streamlined processes
Because of the short lines of communication with parties in the labor market, the MSP can quickly contact the right candidates. This way the MSP reduces time to hire and the burdens on hiring managers.
2. More insight into external hiring
An MSP has insight into market rates and the availability of candidates, including freelancers. This way an MSP can quickly help organizations place the right people in the right place.
3. Continuity within the organization's personnel recruitment
MSPs have an extensive network. That way they can continuously search for talent. An MSP also oversees supplier management with regard to aspects that are important to a client, such as the quality of the candidates and the response speed. An MSP contributes to the uniformity and standardization of the hiring process for an organization.
4. Cost savings
When you hire an MSP, the cost savings quickly become apparent. For example, in preparing more accurate invoices, which leads to less administrative work. But also savings from supplier management, automating parts of the hiring process and centrally managing the hiring program, which saves HR managers time.
5. More time on for innovation
Through an MSP, external talent is deployed on a specific assignment within the organization. This results in a reduced workload for employees. By, for example, transferring repetitive IT work, in-house IT staff have more time for innovation.
