What are the benefits of collaborating with an MSP?
1. Smooth hiring process
Reduce the burden on your HR department and at the same time ensure a shorter hiring process. How? The MSP maintains relationships with various parties in the labor market and can more quickly gather the right candidates.
2. Continuity of personnel recruitment
An MSP has an extensive network. The service provider can search for talent year-round. An MSP also has insight into which points of attention are important for your organization. With subject-matter expertise they can standardize and improve the hiring process for your organization.
3. Save costs
From supplier management to preparing correct invoices: by hiring an MSP you save costs and time. An MSP is a partner who thinks along with you and looks for the best solutions for your organization. Are you interested in working with an MSP? Then these are the terms you need to know before you enter the conversation:
-1. 1st , 2nd and 3rd generation MSP
Degree of maturity of the program. A 1st generation MSP occurs when a client outsources an (hiring) process to an MSP for the first time. If the program is subsequently taken over, often by a supplier of the MSP service provider, this is a 2nd generation MSP. With a subsequent MSP of a 3rd generation etc.
2. Acceptance of Work
According to Article 7:750 of the Civil Code: The contract by which one party, the contractor, undertakes toward the other party, the client, to carry out and deliver, outside an employment relationship, a work of a tangible nature, for a price in money to be paid by the client).
3. External hiring
Use of flexible labor through various contract forms.
4. External hiring advisor
Expert who supports companies in strategy and policy regarding external hiring and/or the operational, tactical and strategic procurement process of suppliers involved in external hiring.
5. API
An application programming interface (API) is a collection of definitions on the basis of which a computer program can communicate in a standardized way with another program or component (usually in the form of libraries).
6. Approval Flow
Approval process based on predefined rules.
7. Assessment criteria/l award criteria (for government)
The characteristics by which the degree of suitability of a candidate is assessed. With the help of evaluation criteria, a ranking can be made of the suitability of multiple candidates for a position.
8. Blended
Combination of permanent and flexible personnel under the management of 1 party.
9. Blue collar
Employee who performs manual work, such as production work. Usually temporary agency work.
10. Broker
A company that brings together supply and demand for external hiring and is usually only paid when a match is successful. The broker searches for suitable candidates for open hiring requests but, in principle, does not get involved in the client's hiring process. However, the hiring administration is usually carried out for the candidates hired through it, such as screening, concluding the contract, time registration and invoicing.
11. Business Process Outsourcing (BPO)
Business Process Outsourcing is the complete outsourcing of a process to third parties. The major difference with ‘Outsourcing’ is that BPO focuses on outsourcing the entire process.
12. Business case
A project management term describing the business consideration to start a project or task. In the business case the costs are weighed against the benefits, taking the risks into account. Often a decision is made based on the business case whether or not to start and/or continue with a project.
13. Client funded
The client will bear the costs of the MSP and/or VMS solution. Suppliers will not have these costs passed on to them by the client and/or the MSP provider.
14. Compliancy
Compliance with both laws and regulations as well as with client-specific requirements, such as policies, terms and processes.
15. Contract management
The service in which a supplier, on behalf of a client, enters into a hire-in agreement or a contract for services with an external worker selected by the client or a third party (usually a self-employed contractor/freelancer). The supplier also handles invoicing and additional services such as ensuring compliance.
16. Cost per hire
Total sum of hiring costs divided by the number of hired external employees.
17. Dashboard reporting
Report that shows progress and status of established KPIs.
18. Secondment
Deploying specialists on a flexible basis at clients with a fixed-term or indefinite employment contract without a temporary employment clause.
19. Direct and indirect savings
Direct savings are savings on the direct out-of-pocket costs of external hiring, such as the rate and expenses. Indirect savings are savings on indirect and process costs, such as savings from the time spent on an activity.
20. Dynamic Purchasing System (DPS)
Only for (semi) government. Electronic process for making routine purchases of works, supplies or services.
21. E-invoicing
The electronic submission of invoices.
22. Freelancer
See self-employed person
23. GDPR-proof
Fully comply with the rules of the General Data Protection Regulation (AVG) which derive from the GDPR (General Data Protection Regulation) EU regulation.
24. General staffing
Temporary employment of ‘ordinary’ non- specialist or non-highly educated personnel. (As a counterpart to Professional Staffing that focuses on mediation and placement of higher positions at HBO/WO-level)
25. Hiring manager
Manager at the client who provides direction and supervision to the hired candidate or who is the direct client of a self-employed contractor.
26. Independent Contractor (IC)
English definition for ZZP’er.
27. Inhouse (On site)
The service provision in which a supplier deploys its employees at the client's location to support the hiring process occurs mainly with MSPs and employment agencies.
28. Hiring desk
A central department that coordinates external hiring, staffed by the client itself or by an MSP.
29. Hiring of personnel
The provision of workers by a supplier to a client for remuneration, where work is performed under the direction and supervision of the client.
30. Hirer
Client who hires external employees.
31. Insourcing
The client chooses to take the outsourcing solution back into its own management.
32. Key Performance Indicator (KPI)
Measurable variables to objectively analyze performance.
33. Longlist
Initial selection of selected candidates or suppliers based on selection requirements and -criteria.
34. Market consultation
Instrument that a contracting authority can deploy in preparation for a procurement, in which market parties are asked for information with the aim of using this information to (better) determine the feasibility, preconditions and requirements of the procurement.
35. Marketplace
Open online environment in which demand (client) and supply (suppliers and freelancers) are brought together.
36. Master Vendor
A supplier that, as the only party, supplies external candidates to a client, whereby this supplier can make use of subcontractors to increase delivery reliability.
37. Maturity Scan / hiring maturity model
Model intended to obtain an impression of the degree of maturity of the strategy, approach and processes regarding the hiring of external staff by the client organization.
38. MSP
A Managed Service Provider (MSP) organizes the hiring and sourcing of an organization's personnel at the strategic, tactical & operational levels and is therefore responsible for managing contracts with suppliers of personnel services (including temporary agency workers, secondees, -self-employed contractors-, the management of tendered work and -other HR services-). It carries this out through the use of reporting tools and a Vendor Management System (VMS) that provides a tight process/workflow.
39. MSP fee
Compensation for the MSP services, Client funded or Supplier funded (or combination).
40. MSP spend
MSP-managed procurement expenditures of an organization in the area of hiring, and/or recruiting and/or contracted work, excluding MSP and VMS fees.
41. Neutral MSP
An MSP that is not a direct supplier of external hiring.
42. On- and offboarding
Onboarding: The process of getting the selected candidate ready to start the assignment. OffBoarding: The process of carrying out the termination of the engagement of the hired external.
43. Outsourcing
Outsourcing of activities that are not part of an organization's core activity.
44. Payroll
The provision of workers to perform work under the supervision and direction of the client, whereby the worker has been recruited and selected by the client and it has been agreed with the client that the worker will be made available only and exclusively to the client.
45. Pool management
Database of external employees who are (exclusively) assigned to the client.
46. Process flow
Diagram showing the successive process steps.
47. Professional
MBO with very specialized (technical) knowledge and experience / HBO level or higher.
48. Professional staffing
The deployment of highly qualified specialists for the benefit of the client.
49. Ratecard
Overview of market-conform and/or maximum rates per hired role, whether or not specified per supplier.
50. Recruitment
The recruitment process for new employees.
51. Request for Information (RFI)
An initial request to suppliers to provide information about their organization and their capabilities to meet the requirements of a procurement or outsourcing process. Based on suppliers' responses, the company gets an idea of the options available from different parties. Different suppliers can also already be compared (superficially), and on the basis of objective criteria the number of suppliers invited to a formal request for proposal (Request for Proposal) can be limited. A Request for Information also usually precedes a Request for Proposal, although in certain cases both can be combined.
52. Request for Proposal (RFP)
Invitation from a client to suppliers to participate in a request for quotation by submitting a bid.
53. Request for Quotation (RFQ)
Tailored price proposal by the selected suppliers from the RFP.
54. Reversed billing
See Self-billing.
55. Savings / cost savings
See “direct and indirect savings”.
56. Scope of the program
Pre-documented scoping of the service delivery.
57. Self-billing
Invoicing process, in which the purchaser prepares the invoice on behalf of a supplier (of flexible labour). The purchaser is the party with whom the assignment or hire agreement has been entered into, so depending on how the contract structure is arranged, this can be the MSP or client.
58. Service Level Agreement (SLA)
A part of the agreement between the client and the contractor in which the level of service is defined in concrete and measurable terms, using performance indicators and quality requirements so they can be assessed later.
59. Sourcing
The term has, within the context of an MSP, two meanings: · The sourcing of candidates: The recruitment ofp professionals through identifying, assessing and attracting candidates by pro-active recruitment techniques, whether or not with the help of (sub)suppliers. Sourcing in principle ends with finding a name, details and possibly the first contact with a candidate. · The sourcing of suppliers: the selecting and contracting of suppliers. The management of suppliers or assignments does not fall under sourcing.
60. SOW (Statement of Work)
Agreement of Assignment in which Client and Contractor at least set out the terms, price and result of the assignment.
61. Supplier funded
MSP model in which the transactional costs of the MSP solution and/or VMS solution are charged back to the suppliers.
62. Supplier management
Managing and maintaining the relationship with suppliers regarding the agreements with and performance of the suppliers in terms of scope, quality and costs.
63. Supplier measurement
Measuring the supplier's performance.
64. Supply Chain financing
Financing solution whereby a financial institution offers a payment solution to shorten the client's payment term in exchange for payment of a financing percentage by the contractor.
65. Talent pool
A group of preselected candidates within a specific job category with the aim of quickly filling common vacancies with qualified candidates.
66. Tender
Quotation process (see also RFP)
67. Tiering
Applying a classification of suppliers into different groups (“tiers”) based on which certain benefits can be granted, for example when receiving requests, whereby suppliers in tier 1 get the opportunity first (whether or not within a certain time limit) to propose a candidate. Suppliers in tier 2 only receive a request after specific conditions have been met, for example after a certain time limit or as soon as it becomes apparent that no suitable candidates have been proposed by suppliers in tier 1. Based on supplier performance they can move between the tiers.
68. Time & Material (T&M)
Pricing mechanism whereby the contractor charges the client for the hours actually spent in accordance with a previously agreed hourly rate plus the expenses incurred by the contractor in the context of the assignment.
69. Total Cost of ownership (TCO)
Total costs that an organization incurs for the ownership of a product or the use of a service over the entire life cycle or usage cycle of the product or the service. Not only the purchase costs but the entire lifespan is calculated.
70. Total Workforce Management (TWM)
Managing the complete process of inflow, internal mobility and outflow of an organization's personnel (permanent and flexible = blended).
71. Outsourcing process
Having business activities carried out by a third party under the direction of that third party.
72. Broadcasting
The provision of workers to perform work under the supervision and direction of the client.73. VMS
A Vendor Management System (VMS) is an integrated technology, Software As A Service (SaaS), that provides control over the entire hiring process. From needs specification and contracting through to invoicing. A SaaS supports the entire hiring process of external workers and, in some cases, also related processes such as registering external personnel and managing SoWs. Typical features of a VMS application include distributing requests to preferred suppliers, recording the requests, contracts and files (compliance), registering, approving and invoicing time and expenses. Finally, it offers reporting capabilities. The VMS solution is configured so that it fits the "maturity" of the hiring process. And due to its modular structure the VMS grows with the organization: in the organization's needs, but also in the changing labor market.
74. Data Processing Agreement
The agreement whereby the processing controller and the processor make arrangements regarding the processing of personal data, as referred to in Article 28(3) of the GDPR.
75. Preferred suppliers / preferred supplier
A market party that has met the (general) preconditions for a client and from whom certain goods or services are preferably procured. Usually the conditions under which purchases take place are laid down in a framework agreement.76. Preliminary investigation / Due Diligence
A due diligence investigation focuses on the determination by the contractor of the accuracy of the information provided by the client and on identifying the risks and opportunities of the services offered, particularly with respect to financial, legal, fiscal and commercial aspects.
77. White collar
Employees who work in an office environment.
78. Self-employed
See self-employed person79. Self-employed, ZP-er, ZZP’er
One-person business, Independent Professional, Self-employed Without Personnel. An entrepreneur who offers his labour on his own account and at his own risk in his own company or practice, or in an independently practiced profession.
