Managed Service Programs (MSPs) have become a cornerstone in modern business operations, offering comprehensive solutions for managing contingent workforces. As we move into 2025, the importance and scope of MSPs continue to grow, providing businesses with strategic advantages in an increasingly complex and dynamic work environment. 

MSPs are widely recognized as one of the most prominent and impactful contingent (or indirect) labor service offerings in the workforce solutions industry. From streamlining processes to boosting efficiency, these programs have been embraced by organizations of all sizes. Whether you’re a multinational corporation or a mid-sized business, MSPs can help you manage your contingent workforce with ease and expertise.  

We’re here to help simplify the meaning of managed service programs and educate our potential clients on their many benefits. 

Definition and Scope of MSPs 

A managed service program (MSP) is a type of business process outsourcing (BPO) designed to manage an organization’s contingent workforce efficiently. By partnering with a specialized provider, businesses can offload the complexities of managing temporary workers and focus on their core operations. 

An MSP oversees the entire contingent labor lifecycle, including: 

• Facilitating job requisitions 

• Coordinating interviews 

• Managing onboarding processes 

• Handling invoices and payments 

• Leveraging data and analytics to track trends and improve outcomes 

This end-to-end management not only simplifies the contingent labor process but also drives better outcomes, such as cost savings, enhanced compliance, and access to top talent. 

Who Benefits from Using an MSP? 

Organizations of all sizes and industries can benefit from implementing an MSP. Companies with sizable or diverse contingent workforces often find the most value, as MSPs streamline recruitment processes and provide access to high-quality talent pipelines. 

Key Benefits of MSP Adoption: 

• Efficiency: Streamlines recruitment processes and vendor interactions. 

• Talent Quality: Delivers a superior candidate pipeline of skilled professionals. 

• Cost Control: Ensures competitive pricing and helps identify cost-saving opportunities. 

• Compliance: Helps organizations stay compliant with labor laws and regulations. 

Related: [Video] Contingent Staffing 

Types of MSPs 

There are three primary MSP models commonly used today, each catering to different organizational needs: 

• Vendor-Neutral: Frequently leveraged by non-manufacturing MSPs, vendor-neutral programs allow the client to post positions to an expansive network of staffing suppliers managed by the MSP. This model helps clients to receive and review candidates without branding or biases, ensuring the selection of the highest quality worker at competitive rates. 

• Three-Party Relationship: This model is popular among manufacturing companies with high hiring volumes. It fosters collaboration between the client, MSP, and local suppliers, enabling swift responses to urgent needs and driving value in real-time recruitment scenarios. 

• Master Vendor: The master vendor model can be utilized as an additional layer beneath the three-party relationship for client locations with a consistent need for similarly skilled contingent labor. Generally, companies that lean on master vendor programs maintain at least 50 contingent workers per worksite. This model can act as an extension of the MSP while partnering with the client to drive efficiency and enhance overall contingent labor performance. 

Related: MSP or MVP?: That is the Question 

Successfully implemented MSPs 

At Broadleaf, we’ve consistently delivered measurable results for our clients through tailored MSP solutions. For example: 

• Cost Savings: Achieved over $1.7 million in savings for a client. 

• Faster Hiring: Reduced time-to-fill by 31%. 

• Seamless Collaboration: Maintained 100% supplier participation month-to-month. 

• High-Volume Hiring: Delivered 400 contractor hires in just three months. 

These outcomes underscore the transformative potential of an MSP in driving compliance, visibility, cost control, and strategic workforce decision-making. 

Read more about the success of this engagement by checking out our case study. 

Why is an MSP right for my company? 

The evolving labor market demands agility, and an MSP equips your organization with the tools needed to thrive. By pairing your MSP with a vendor management system (VMS), you gain: 

• Enhanced Visibility: Comprehensive oversight of contingent workforce operations. 

• Data-Driven Decisions: Sophisticated analytics for informed strategies. 

• Scalability: Seamless adaptation to shifting workforce needs. 

Did you know? Over 80% of companies with 1,000 or more employees now use a VMS to manage their contingent workforce. (Source: Simplify VMS). 

Related: Finding the Right Vendor Management System for Your Workforce Needs 

If you’re seeking robust talent pipelines, better cost efficiency, improved compliance, and actionable insights, an MSP might be the perfect solution for your business. 

Related: The Advantages of Integrating an MVP Into an MSP 

Interested in learning more about Broadleaf’s MSP solution? Follow us on LinkedIn or email us at info@broadleafresults.com to learn more about how managed service programs can benefit your business. 

Related: 7 Myths About MSP Programs 

Our Broadleaf Promise 

At Broadleaf, our mission is to deliver flexible, results-driven workforce solutions. Whether you’re navigating immediate hiring challenges or shaping a long-term recruitment strategy, we’ll collaborate with your team to create a customized MSP solution that aligns with your goals. 

For more workforce advice, be sure to visit our Broadleaf blog. 

The post What is MSP? Managed Service Programs: Explained appeared first on Broadleaf Results.

As we look ahead to 2025, the advanced manufacturing industry in the United States and Canada is poised for significant transformation. Recent surveys and industry reports highlight key trends that will shape the workforce in this sector. 

Investment in Industry 4.0 Technologies 

Despite economic challenges, manufacturers are continuing to invest in advanced technologies. The 2025 Advanced Manufacturing Outlook survey found that 89% of respondents reported benefits from technological upgrades. Investments in automation, robotics, artificial intelligence, and the Industrial Internet of Things (IIoT) are on the rise, with 18% of manufacturers planning to invest in IIoT technologies over the next year. 

Workforce Implications 

These technological advancements will have profound impacts on the manufacturing workforce: 

1. Skill Gap: As advanced technologies become more prevalent, there will be an increased demand for workers with specialized skills in areas like AI, robotics, and data analytics.
2. Reskilling and Upskilling: Existing workers will need to adapt to new technologies, requiring significant investment in training and development.
3. Changing Job Roles: Some traditional manufacturing roles may become obsolete, while new positions focused on managing and maintaining advanced systems will emerge.
4. Labor Shortages: The industry is already facing difficulties in filling skilled trades positions, a challenge that may intensify as technology requirements evolve.

How Broadleaf Results Can Help 

In this rapidly changing landscape, Broadleaf Results offers crucial support through its Managed Service Programs (MSPs) and Employer of Record/Payrolling services: 

1. Talent Acquisition: Broadleaf’s MSP supports manufacturers’ talent acquisition through management of their active supplier base, addition of known specialized suppliers, and the introduction of a streamlining technology that supports identification and management of manufacturing talent.
2. Workforce Flexibility: Through Employer of Record services, companies can quickly scale their workforce up or down to meet changing technological and production needs. 
3. Compliance Management: As workforce regulations evolve alongside technology, Broadleaf ensures compliance across all employment arrangements. 
4. Cost Optimization: By leveraging Broadleaf’s services, manufacturers can manage labor costs more effectively while investing in new technologies. 

Managed Service Providers (MSPs) play a crucial role in helping manufacturers effectively manage their contingent workforce 

By leveraging MSPs, manufacturers can streamline their contingent labor processes, from sourcing and onboarding to performance management and offboarding. MSPs offer comprehensive solutions that include talent acquisition, compliance management, and cost optimization. They can implement vendor management systems (VMS) to enhance visibility and control over the contingent workforce, mitigating risks associated with non-compliance and unauthorized spending. Additionally, MSPs can provide valuable insights into workforce trends and analytics, enabling manufacturers to make data-driven decisions about their contingent labor needs. This strategic approach allows manufacturers to maintain flexibility in their workforce while focusing on their core competencies and production goals. 

Related E-Book: Evaluating and Implementing a Second-Generation MSP 

As the manufacturing industry continues its journey towards smart factories and Industry 4.0, partnering with a workforce solutions provider like Broadleaf Results can help companies navigate the complex talent landscape of 2025 and beyond. 

The post The Advanced Manufacturing Landscape in North America: Workforce Impacts and Solutions for 2025 appeared first on Broadleaf Results.

Related Blog – Supplier Diversity Programs: How to Get Started 

Expanding Access to Underrepresented Talent Pools through Supplier Diversity in MSP Programs 

Supplier diversity programs are essential in today’s business landscape. At its core, supplier diversity is about building a supply chain that includes businesses owned by individuals from historically underrepresented groups, such as minority-, women-, LGBTQ+-, veteran-, and disabled-owned businesses. A supplier is classified as diverse when at least 51% of the company is owned and operated by individuals from these groups. But it goes far beyond meeting compliance requirements; supplier diversity is a transformative business approach that unlocks significant new value, from fostering innovation to building stronger community connections and enhancing business resilience. Many companies have reported that partnerships with diverse suppliers yield higher innovation returns—up to 133% more procurement value—due to the unique perspectives these suppliers bring to problem-solving and product development​. 

Integrating supplier diversity into a Managed Service Provider (MSP) program can amplify these benefits, ensuring agility and accountability while diversifying an organization’s supply chain. By partnering with MSPs that prioritize supplier diversity, companies can expand their access to previously underrepresented talent pools. For instance, veteran-owned staffing firms have a deep understanding of the unique challenges veterans face when transitioning to civilian careers, enabling them to recruit veterans more effectively. By working with such suppliers, MSPs allow companies to tap into underutilized talent pools and source candidates inclusively. 

Driving Economic Empowerment for Underserved Communities 

Supplier diversity isn’t just about fulfilling corporate responsibility; it’s a powerful investment in economic empowerment and long-term prosperity for communities that have been historically excluded from mainstream economic opportunities. Rather than viewing supplier diversity as a compliance measure, consider it a strategic approach to drive inclusive economic development while strengthening your brand’s social impact. Partnering with diverse suppliers enables organizations to contribute to a more equitable economy, helping to level the playing field and open up new avenues for growth. 

Enhancing Business Outcomes through Agility and Innovation 

Working with diverse suppliers does more than meet diversity targets—it fosters agility and drives innovation. By bringing in fresh perspectives, diverse suppliers can offer unique approaches to solve challenges, adapt quickly to changing market demands, and bring forward creative solutions. In a fast-paced business environment, this diversity of thought is a crucial asset. MSP programs that integrate diverse suppliers into their operations can gain a competitive edge by harnessing these new ways of thinking, ensuring they stay relevant and competitive in the market. 

The Role of MSPs in Enhancing Supplier Diversity 

A successful MSP partner doesn’t just meet supplier diversity goals; it becomes a catalyst for change. Experienced MSPs help clients embed supplier diversity into their broader Diversity, Equity, and Inclusion (DEI) strategies for long-term impact. A strong MSP partner will also have the expertise to source diverse suppliers who deliver high-quality services at competitive prices, adding tangible value to the business. Furthermore, MSPs can offer robust reporting that tracks diversity spending, supplier performance, and the program’s overall business impact. This transparency is essential for ensuring that supplier diversity programs go beyond theory, providing measurable outcomes that demonstrate the program’s effectiveness. 

Incorporating supplier diversity into your MSP program is more than a box to check; it’s a strategic choice that benefits businesses, communities, and the economy. By building connections with underrepresented suppliers, organizations can unlock new opportunities, foster innovation, and contribute to a more inclusive and equitable marketplace. 

This blog was written by Broadleaf’s Vice President Client Delivery Joseph O’Shea. 

The post The Importance of Supplier Diversity in MSP Programs appeared first on Broadleaf Results.

Agile MSPs: Collaborating to Meet Your Needs in Real-Time 

At the core of our MSPs is a culture of continuous collaboration and real-time responsiveness. We understand that every company is at a different stage of growth—some may have sophisticated technologies in place, while others need more support in areas like data visibility or supplier management. Broadleaf’s ability to customize our reporting tools and tailor service delivery based on a client’s unique situation is a testament to our agility and problem-solving expertise. 

Here’s a real-world example of how our flexibility and rapid response helped a global leader in consumer packaging and industrial products, with over $5 billion in revenue and 23,000+ employees spread across 30+ countries. 

The Challenge 

Our client initially sought to enhance their contingent labor visibility through a technologically advanced MSP solution. As they expanded operations by acquiring new facilities, their decentralized structure became more complex, with each plant running autonomously and with varying levels of sophistication in managing contingent labor. This posed significant challenges in standardizing practices and achieving cost-saving goals across the enterprise. 

Related Blog – How MSPs Drive More Holistic Total Talent Acquisition Solutions

The Solution 

Broadleaf responded with a flexible and adaptive solution, pivoting quickly as the client’s needs evolved. Rather than imposing a one-size-fits-all approach, our dedicated team assessed each facility’s operations, categorizing plants by volume and tailoring our engagement accordingly. For high-volume plants, we established frequent touchpoints with weekly check-ins to ensure swift communication and alignment with business objectives. For smaller plants, we maintained regular, but less frequent, engagements to ensure continued oversight and optimization. 

This dynamic approach allowed us to respond to challenges at each facility individually while keeping a cohesive, company-wide strategy in place. Our teams—including a Director of Client Delivery, Talent Acquisition Advisors, and Client Operations Support—provided ongoing adjustments and solutions to ensure the client’s evolving needs were met in real time. 

The Results: Agile Execution, Tangible Outcomes 

Broadleaf’s adaptability and tailored approach yielded significant outcomes for the client: 

• Cost Savings: We delivered over $3.6 million in cost savings, far exceeding original projections. This included annual savings of $175,000 with a further 25% reduction in costs. 
• Enhanced Financial Agility: By optimizing payment terms, we improved the client’s working capital by seven days, boosting their financial agility. 
• Diversity Commitment: We committed 3% of total spend to diverse suppliers, including women-owned, minority-owned, small, LGBTQ, and veteran-owned businesses, with plans to expand partnerships with even more diverse suppliers. 

Conclusion 

At Broadleaf, agility isn’t just a capability—it’s the foundation of how we deliver results through our MSPs. By remaining nimble and responsive, we help clients navigate complex, evolving business environments and achieve success through customized, flexible solutions that drive both immediate and long-term results. 

Read the full case study.  

Take our MSP Quick Assessment to see if Managed Service Programs are right for your organization.  

Why Broadleaf? 

Broadleaf’s MSPs are built on a foundation of flexibility and customization. Whether it’s a particular department, job type, or location, our MSPs can be tailored to fit each client’s specific needs. We are dedicated to delivering a hands-on, engaged MSP experience and to working closely with our clients to achieve exceptional outcomes. 

By choosing Broadleaf, clients gain a strategic partner committed to meeting their goals and delivering value through every stage of the MSP lifecycle. Our agility, coupled with a commitment to collaboration, positions us to help clients navigate complex challenges and drive successful outcomes. Broadleaf’s Managed Service Programs aren’t just flexible—they’re designed to transform the way clients manage their contingent workforce, achieve cost savings, and engage suppliers for optimal performance. 

Related E-Book – Evaluating and Implementing a Second-Generation MSP

Contact us today to discuss how MSPs can work for your organization.  

This blog was authored by Derrick Ryskamp.  

The post How Broadleaf’s MSPs Deliver Flexibility and Drive Exceptional Results appeared first on Broadleaf Results.

Our team at Broadleaf understands that selecting the right VMS platform is critical to supporting your labor needs and bringing value to your workforce. From system flexibility and compliance management to analytics and integrations with existing platforms, several factors will play into your final decision. 

To help educate your business on selecting the proper VMS for your workforce needs, we developed a list of the top third-party platforms on the market. Here are our findings in alphabetical order: 

Beeline 

The Global Workforce Intelligence Platform from Beeline is an efficient and effective way to manage your contingent workforce programs. Featuring a well-organized task-driven dashboard, utilization of business intelligence software, and ability to integrate with over 100 technology partners, Beeline is well-positioned as a top VMS provider. Plus, your organization will be well-positioned to drive efficient workflow with its top-rated user experience—that’s simple to navigate with a well-defined support model—and rapid deployment capabilities. Learn more at beeline.com. 

Elevate 

Elevate is a modern talent-focused workforce management and VMS platform bringing an enhanced focus on lifting talent quality and program excellence above and beyond the transactional oriented VMS platforms of today. The platform is built for middle-market and up buyers of external talent/SOW services and MSPs servicing their customers who are challenged with attracting and retaining high quality contingent talent. Customers are either establishing their first-generation programs and looking for innovative technology platforms or evolving to their second-generation programs and upgrading from their older, legacy VMS platforms. Learn more at elevatesaas.com. 

SAP Fieldglass 

As companies scale up their workforces worldwide, they need a contingent workforce management system to keep pace with their needs. SAP Fieldglass’s VMS platform can help businesses to initiate, engage, manage, and complete their contingent workforces through its CWM 360-degree solution while incorporating flexible workflows to drive oversight and compliance. Leverage machine learning tools to identify candidates, ensure full compliance with local labor laws, and save on external expenditures by cutting down on rogue and maverick spend. Learn more at fieldglass.com. 

Workday VNDLY 

With the acquisition by Workday, VNDLY has a strong, continued commitment to developing and evolving its VMS platform. One of the most modern cloud-based VMS technologies on the market today, Workday VNDLY’s system makes the talent management process easy and efficient for contingent workers and suppliers. Companies can configure pre-made job templates, evaluate talent pools, establish pre-onboarding compliance checklists, and generate standard or custom reports. Workday VNDLY’s easy-to-use yet robust VMS platform can be configured to align with changing program needs. Plus, valuable API integrations like ServiceNow and Okta enable customers to reap the benefits of a fully integrated technology ecosystem that efficiently moves data among departments. Learn more at workday.com. 

Interested in working with the Broadleaf team to select a best-fit vendor management system for your organization? Contact us today to learn how we can evaluate all VMS options with your HR and procurement teams.

The post Finding the Right Vendor Management System for Your Workforce Needs appeared first on Broadleaf Results.

Steady Demand in Key Sectors 

Panelists noted that demand for contingent labor in the tech industry—particularly in areas like software development, cybersecurity, and AI—has been on the upswing. Tech’s shift away from cloud computing in favor of AI is changing the type of talent that businesses want, underscoring the need for more robust reskilling and upskilling programs. Demand in healthcare and logistics has remained steady, as well. 

Related: What is Contingent Workforce Management? 

Importance of Proper Worker Classification 

Worker classification continues to present challenges in the contingent labor space, especially given new regulations from the U.S. Department of Labor around classifying independent contractors. 

Proper worker classification is essential from a legal standpoint but can also help organizations manage their workers more effectively. Audits play a critical role in identifying classification issues, but the real challenge is addressing the root causes of misclassification. Organizations must educate managers and guide them in properly classifying workers to avoid costly problems down the road. 

Related: Employment Law Updates to Know in 2024 

Customization and the End of One-Size-Fits-All Solutions 

When it comes to contingent workforce management, offering a one-size-fits-all approach is no longer enough. Providers must tailor their programs and processes to each individual client. This means thinking more carefully about the team assigned to each account and ensuring their expertise and experience align with the client’s needs and preferences. 

Direct Sourcing: Valuable but Misunderstood 

Although direct sourcing has been a hot topic for several years, misconceptions remain around what it entails and how it can be implemented successfully. 

Panelists agreed that the biggest benefit of direct sourcing lies in the “reusability” of known talent, such as alumni or “silver medalists,” who have already proven their value to an organization. Tapping into this talent pool when needs arise can mitigate risk, expedite onboarding and ramp-ups to productivity, and save the company valuable time and money. 

Ultimately, though, direct sourcing should be one channel in a broader talent acquisition strategy—and there’s still more education needed for employers to make the most of it. 

Related: What is Direct Sourcing? 

Putting DEI into Practice 

Discussions around pay transparency and diversity, equity, and inclusion continue to shape how organizations manage their contingent workers. Employers—and their contingent workforce partners—must put these principles into action, track their efforts, and ensure fair, equitable treatment of all candidates and employees. By embracing diverse experiences and backgrounds, businesses can do a better job of innovating and problem-solving. 

Related: Neurodiversity in the Workplace: Leveraging the Untapped Talent Pool 

The future of contingent labor is filled with both challenges and opportunities. As organizations navigate this shifting landscape, those that focus on proper worker classification, embrace a comprehensive approach to talent acquisition, adapt to regulatory changes, and prioritize flexibility and diversity among their contingent employees will be best positioned for success. By staying ahead of these trends and proactively addressing the challenges, companies can build a more resilient and dynamic contingent workforce for the years to come. 

Interested in more industry news and trends? Check out our latest Employment Update, and sign up for Broadleaf’s monthly newsletter here. 

The post Webinar Recap: The Future of Contingent Labor appeared first on Broadleaf Results.

Staffing Industry Analysts predicts that contingent workers will make up 5.2 percent of the North American workforce in the next three years–an increase from the current 4.2 percent. In contrast, full-time workers are expected to constitute 76 percent of these workforces, down from 80 percent today and 82 percent three years ago.

But what exactly is contingent staffing? And how can you meaningfully integrate it into your workforce? Let’s dive into the details. 

Understanding Contingent Workforce

Contingent workers are non-permanent employees who work on a temporary basis. These individuals are not bound by the traditional employer-employee relationship and often work on specific projects or tasks. You’ll find contingent workers across all industries, including marketing, education, health services, and retail. Examples of contingent workers include:

• Independent contractors
• Freelancers
• Consultants
• Interns
• Temporary workers employed through staffing agencies

The primary differences between contingent workers and full-time employees lie in their employment relationship, duration of employment, benefits, and level of commitment.

What is Contingent Workforce Management?

Once you understand the options available to you via a contingent workforce, it’s important to develop systems to support them. This is known as contingent workforce management.

Contingent workforce management refers to the strategic approach and processes an organization uses to leverage their temporary and non-permanent employees. This encompasses a range of activities, including:

• Sourcing and recruiting 
• Onboarding 
• Performance management
• Offboarding
• Ensuring compliance with labor laws, managing contracts, and optimizing the overall workforce strategy

Related: Video: Contingent Staffing

Key Components of Contingent Talent Management

Sourcing and Recruiting: Finding the right talent quickly is crucial. Contingent workforce management involves leveraging various channels such as online job platforms, staffing agencies, and professional networks to source skilled contingent workers.

Onboarding: Efficient onboarding processes integrate contingent workers into the organization swiftly, ensuring they understand their roles, responsibilities, and company policies.

Compliance: Managing a contingent workforce requires adhering to labor laws and regulations and involves classification issues, tax implications, and contract management. Non-compliance can result in legal risks and financial penalties.

Performance Management: Monitoring and evaluating the performance of contingent workers is vital to ensure they meet project goals and contribute effectively to the organization.

Offboarding: When a project ends, or the contract is completed, offboarding involves managing the exit process smoothly, including knowledge transfers and gathering feedback.

Additional Perspective

To further enhance your understanding of contingent workforce management, consider the following perspectives:

• Technology Integration: Leveraging advanced technology platforms can streamline the management of contingent workers. A Vendor Management System (VMS) can automate processes, track performance, and ensure compliance, allowing you to manage your contingent labor more efficiently.
• Talent Pool Diversity: By utilizing a diverse range of contingent workers, organizations can foster innovation and bring in fresh perspectives and experiences. This diversity can be a strategic advantage in solving complex problems and driving business growth.
•  Long-term Strategy: While contingent workers are often associated with short-term projects, integrating them into a long-term workforce strategy can provide ongoing benefits. This includes building a reliable talent pipeline and developing relationships with high-performing contingent workers for future projects.
• Employee Engagement: Effective engagement strategies are crucial for contingent workers. Ensuring they feel valued and integrated into the company’s culture can improve their job satisfaction and productivity, leading to better project outcomes.

Stay Ahead with Effective Contingent Workforce Management

Whether you’re a Fortune 500 company or an emerging industry leader, partnering with a contingent workforce management provider with proven experience can help you reach your business objectives. With the increasing presence of freelancers, independent contractors, and temporary employees in the workplace, Broadleaf is well equipped to help companies keep their workforces engaged and efficient. 

Broadleaf delivers contingent staffing solutions that effectively manage staffing supplier efforts to enhance candidate quality and compliance, while decreasing costs. Our managed service provider (MSP) solutions are specially designed to help you source the highest-quality candidates, consolidate services, streamline processes, and provide advanced workforce analytics.

Learn more about Broadleaf’s managed service programs here. 

This blog was authored by Joseph O’Shea.

The post What is Contingent Workforce Management? appeared first on Broadleaf Results.

Strategic workforce planning has emerged as a critical tool for organizations to navigate these challenges successfully. However, to truly achieve agility and competitiveness, it’s worth exploring how to integrate contingent labor into this planning process.

The Contingent Labor Market in 2024

Contingent labor, including freelancers, contractors, and temporary workers, has become increasingly prevalent in the modern workforce. According to McKinsey, 36 percent of the workforce self-identifies as independent workers.

According to Eightfold AI, contingent workforce participation in the US is expected to increase by 16% in 2024. Use of contingents is already widespread at global firms, with 80% of those surveyed by Staffing Industry Analyst saying their organization already uses contingents.

There are challenges and opportunities when it comes to integrating contingent labor: 

• 70% of executives said they are somewhat or strongly challenged when integrating contingents into their workforce
• 44% said finding contingent workers with specific skills is a difficulty.
• In November 2021, the U.S. reached an all-time peak in voluntary turnover, and although it’s been declining recently, it still hasn’t reached pre-pandemic levels.

To harness the full potential of contingent labor and ensure organizational agility and competitiveness, it’s essential to incorporate them into strategic workforce planning from the outset. 

The Benefits of Incorporating Contingent Labor into your Workforce Planning

There are a few reasons why it’s so important to consider modifying your workforce to incorporate contingent workers: 

• Understanding Future Skill Needs: Strategic workforce planning involves forecasting the skills and talent required to achieve business objectives. By integrating contingent labor into this process, organizations gain a comprehensive understanding of both permanent and temporary skill needs. This enables them to identify gaps, anticipate future demands, and proactively address talent shortages or surpluses.
• Flexibility in Talent Acquisition: In today’s dynamic business environment, the ability to quickly adapt to changing market conditions is paramount. Integrating contingent labor into workforce planning allows organizations to create a flexible talent acquisition strategy. They can leverage contingent workers to fill immediate skill gaps, respond to fluctuating demands, and access specialized expertise without committing to long-term employment contracts.
• Cost-Effective Solutions: Contingent labor offers a cost-effective alternative to traditional hiring models. By incorporating contingent workers into strategic workforce planning, organizations can optimize their workforce mix to achieve the right balance between permanent and temporary employees. This not only helps in reducing overhead costs but also enables better allocation of resources based on project needs and timelines.
• Enhanced Innovation and Creativity: Diversity of thought and experience is essential for driving innovation and creativity within organizations. Contingent workers bring fresh perspectives, diverse skill sets, and industry knowledge from their varied experiences. By integrating them into strategic workforce planning, organizations can tap into this pool of talent to fuel innovation, solve complex problems, and stay ahead of competitors.
• Mitigating Risks: In today’s uncertain business landscape, mitigating risks is a top priority for organizations. By incorporating contingent labor into strategic workforce planning, businesses can diversify their talent pool and reduce dependency on a single source of labor. This helps in mitigating risks associated with talent shortages, sudden market shifts, or unforeseen disruptions, ensuring continuity of operations and business resilience.

Video – Learn how Broadleaf Results works with your business to help you manage contingent labor contracts, payments, and more

How to Develop an Integrated Contingent Labor Strategy

If you are curious about what it would look like for your organization to explore contingent labor workforce planning, here are some easy steps to get started:

1. Identify Your Needs: Assess your organizational needs to determine where contingent labor can be most beneficial. Identify roles, projects, or tasks that could be efficiently handled by temporary workers.
2. Develop a Recruiting and Onboarding Process: Create a comprehensive strategy outlining how you will integrate contingent workers into your existing workforce. This should include guidelines on hiring, onboarding, and managing these workers.
3. Streamline Processes: Simplify and expedite your systems and processes to accommodate the faster pace required for bringing on and integrating contingent workers. Consider implementing technology solutions to facilitate this, such as: 
   • An Applicant Tracking Systems (ATS)
   • Freelance and Gig Platforms, such as Fiverr, Upwork, and Freelancer
   • Recruitment Management Software like Workable, Lever, and Greenhouse
   • Time Tracking and Project Management Tools like Asana, Trello, and Airtable
   • Collaboration and Communication Tools like Slack, Teams, or Zoom
4. Establish Clear Contracts: Develop clear and concise contracts for contingent workers, detailing their roles, responsibilities, duration of engagement, and compensation terms. Ensure compliance with labor laws and regulations.
5. Foster Inclusion and Engagement: Integrate contingent workers into your company culture to foster engagement and productivity. Provide necessary resources, training, and support to help them succeed.
6. Partner with an Experienced Firm: Collaborating with a recruiting firm can streamline the process of sourcing, screening, and onboarding contingent workers. Reputable firms have access to a vast network of qualified candidates and can help you find the right talent quickly and efficiently.

Integrating contingent labor into strategic workforce planning is essential for organizations aiming to achieve agility and competitiveness in today’s dynamic business environment. 

By understanding future skill needs, creating flexible talent acquisition strategies, and leveraging the diverse expertise of contingent workers, businesses can position themselves for success in an ever-changing marketplace. Embracing contingent labor as an integral part of workforce planning is not just a trend but a strategic imperative for organizations looking to thrive in the digital age.

Related blog – 5 Tips to Keep Your Contingent Workforce Engaged

This blog was authored by Joseph O’Shea. 

The post Unlocking Agility and Competitiveness: Integrating Contingent Labor into Strategic Workforce Planning appeared first on Broadleaf Results.

In this blog, we share some of the ways that an experienced managed service provider (MSP) can support these objectives. 

Data-Driven Workforce Planning 

In a Gartner survey, just 33 percent of business leaders said their organization’s HR function is effective at using data in workforce planning. By providing clearer visibility into the data behind your contingent workforce, an MSP can help drive a more strategic approach to workforce planning across your organization. In addition to sharing important metrics like time-to-submit, time-to-hire, and cost savings over time, your MSP partner can identify market trends and benchmark data that may impact how, when, and where you hire. 

Compliance and Risk Mitigation 

Another way your entire organization can benefit from an MSP is through increased compliance and risk mitigation. MSPs can provide independent contractor compliance (ICC) and payrolling/employer of record services that protect your business from financial and co-employment risks. 

Unlike direct employees, independent contractors are in business for themselves, offer services to the public, carry insurance, have a physical location where equipment or tools are kept, pay their own expenses, and set their own schedules. They work free from supervision, direction, and control from the company utilizing them. 

Misclassifying a worker as an independent contractor when they should be classified as a business can have significant financial consequences. 

• The IRS and state unemployment agencies may require your company to pay back taxes and penalties at the state and federal levels for failing to withhold and pay employment taxes. 
• Your organization may be required to pay back wages, overtime, and benefits for the misclassified worker. 
• In California, businesses can be penalized up to $15,000 per violation for misclassifying workers as independent contractors. If the misclassification was willful, the penalty could go as high as $25,000 per violation. 

These fines can add up quickly, especially for businesses that have misclassified multiple workers. MSPs have clear processes in place to properly classify your workers in accordance with IRS standards to prevent these costly issues from arising. 

As experts in employment regulations, your managed service provider will also stay up-to-date and keep you informed of any policy changes that may impact hiring processes and workforce management. 

Related: Employment Law Updates to Know in 2024 

Integrating with Other Workforce Solutions 

For a truly holistic approach to talent management, organizations are leveraging other workforce strategies and solutions, such as master vendor programs (MVPs) and direct sourcing, within their MSPs. 

Integrating a master vendor program into your MSP can provide numerous benefits, including streamlined procurement, a simplified supplier environment, and better technology. By utilizing an MVP inside an MSP, you’ll have access to a dedicated, onsite program and recruitment teams with a single point of contact, leading to localized subject matter experts, improved fill ratios, and decreased time-to-fill.

Under this model, the MVP owns recruitment at defined locations. The MSP can also utilize sub-vendors when hiring ramps up or for roles that the MVP is unable to support. Unlike a traditional contingent workforce model within an MSP, where multiple agencies are competing to fill the same positions in identical markets, this blended solution also allows for greater efficiencies, more onsite support, and more opportunities to save costs. 

Direct sourcing, which leverages technology to improve talent pipelining and create curate pools of qualified candidates, is becoming increasingly prevalent in MSPs. Direct sourcing reduces time-consuming elements of the recruiting process, such as sourcing and pre-matching, while ensuring sourced candidates are qualified and able to engage in work assignments quickly. When direct sourcing is incorporated in an MSP, these talent-related functions can be carried out by the MSP provider without having to engage secondary staffing suppliers. 

Related: What Is Direct Sourcing? 

Summary 

A successful talent acquisition strategy requires a holistic approach that considers your short- and long-term needs and allows your company leaders to see the value of your contingent workforce program. 

MSPs provide valuable support in these areas, assisting companies in attracting and retaining top talent in today’s competitive market while reducing time-to-hire, improving candidate quality, and ultimately, driving business results. By working together, your company and managed service provider can create a talent acquisition strategy that drives business success for years. 

This blog was authored by Joseph O’Shea. 

The post How MSPs Drive More Holistic Total Talent Acquisition Solutions appeared first on Broadleaf Results.

Now more than ever, businesses have access to a wide range of solutions to create new efficiencies in the talent acquisition process—but with so many options and providers available, how can you tell which one is right for you?

Two industry experts—Jason Krumwiede, Executive Vice President of Broadleaf Results, and Derrick Ryskamp, Director of Enterprise Sales for Acara Solutions—recently hosted a webinar to shed more light on the types of workforce solutions and important things for employers to consider when deciding which approach will best fit their needs.

Industry Trends

Shifts in contingent labor, especially since the COVID pandemic, have been a catalyst for many organizations to rethink their approach to workforce management. Buyer priorities have shifted dramatically, and new solutions are needed to address some of the big changes in available talent.

More organizations are moving away from vendor-neutral and non-mandated programs and instead are opting for programs with fewer suppliers and greater accountability to generate better results. Additionally, while hiring processes have typically been siloed to human resources, we are now seeing entire organizations come together to develop talent acquisition strategies that align with overarching business goals. All this is leading to important conversations about where a company’s workforce strategy should go moving forward.

MSP vs. MVP

The webinar detailed two approaches to workforce management in particular:

• A Managed Service Program (MSP) aims to consolidate and optimize workforce management across multiple suppliers.
• A Master Vendor Program (MVP) focuses on contingent labor through a single vendor.

These both differ from a traditional staffing model, where the business owns all talent delivery, oversight, and management internally and partners with multiple suppliers as needed to meet hiring needs.

Related: Infographic: Managed Service Program (MSP) or Master Vendor Program (MVP)

The model that’s best for your organization will depend on a variety of factors, including your company’s specific workforce needs, challenges, and preferences, as well as the complexity of your contingent workforce requirements.

Key program attributes of an MSP include:

• Consolidated, single Master Service Agreement and supplier contracts
• Generally, no onsite agency staff to support contractor care and manager engagement
• Markup/bill rate established by MSP provider
• Provider manages vendor relationships and recruitment activity
• Annual spend ranges from $15 to over $200 million
• Can support worldwide contingent employees within a single program
• Supplier-funded fee model
• Leverages a Vendor Management System (VMS) to streamline all transactions

Meanwhile, key programs attributes of an MVP include:

• Consolidated, single Master Service Agreement and invoicing
• Single point of contact and onsite program staff
• Sub-suppliers fill gaps as needed
• Standardized and efficient processes with consistent onboarding and compliance metrics
• Yearly contractor spend ranges from $3 to $100 million
• Complete performance reporting and analytics; no need for a VMS
• Economies-of-scale pricing create to create significant cost savings
• No management fee

Related: MSP or MVP?: That is the Question

Combining Two Solutions for Optimal Results

Some organizations also opt to blend the two models. By utilizing an MVP inside an MSP, you’ll have access to a dedicated, onsite program and recruitment teams with a single point of contact, leading to localized subject matter experts, improved fill ratios, and decreased time-to-fill.

Under this model, the MVP owns recruitment at defined locations. The MSP can also utilize sub-vendors when hiring ramps up or for roles that the MVP is unable to support. Unlike a traditional contingent workforce model within an MSP, where multiple agencies are competing to fill the same positions in identical markets, this blended solution also allows for greater efficiencies, more onsite support, and more opportunities to save costs.

Related: The Advantages of Integrating an MVP Into an MSP

Benefits of a Centralized Contingent Labor Program

Beyond the cost savings outlined above, a centralized contingent labor program—whether achieved through an MSP or MVP—will also give you access to more data around your hiring efforts, what’s working, and where improvement is needed. You’ll be able to see key metrics like employee tenure, turnover, terminations, conversions, billing, placements accepted, and placements completed all in one place.

Providers also often have access to tools and technologies that can give you a better look at compensation data and regional employment data—all of which can help you design a more competitive talent acquisition strategy.

Related: Evaluating and Implementing a Second-Generation MSP

Find Out Which Workforce Program is Right for You

Now that you know some of the key differences between MSP, MVP, and a traditional contingent workforce solution, the next step is determining which model—or models—is right for you. Contact 

You can also access a recording of the full webinar here.

The post Managed Service Program, Master Vendor Program, or Both? Finding the Right Workforce Solution for Your Business appeared first on Broadleaf Results.