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.

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.

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.

Organizations increasingly leverage contingent labor—expected to grow 53 percent globally and 26 percent in the U.S. in 2023—to bridge talent gaps, attain greater flexibility, and optimize their workforce. Contingent workers give your organization the ability to scale up or down as needed to meet short-term demands or ongoing labor shortages. Employing contingent workers provides a strategy with minimal obligations, allowing you to conclude their assignments once your labor requirements decrease.

MSP vs. MVP

A Managed Services Program (MSP) and a Master Vendor Program (MVP) are both strategies for managing contingent workforces, yet they vary in their methodologies and goals. An MSP seeks to streamline workforce management across various suppliers, whereas an MVP concentrates on centralizing contingent workforce management under one supplier.

MSP: An MSP is a comprehensive and strategic approach to managing an organization’s contingent workforce or temporary staffing needs. It often involves outsourcing workforce management tasks to a specialized third-party provider, an MSP provider. However, your organization can manage the MSP internally. The primary goal of an MSP is to enhance efficiency, reduce costs, and optimize the management of contingent labor.

• Related: What is MSP? Managed Services Programs: Explained

MVP: An MVP is a workforce management strategy that involves designating a primary or “master” staffing agency (the master vendor) to oversee and manage an organization’s supply of temporary workers. In an MVP, the master vendor coordinates and manages the organization’s contingent workers.

• Related: The Benefits of a Master Vendor Solution
• Related: MSP or MVP?: That is the Question

The benefits of integrating MSP and MVP

Integrating MVP into your internally controlled MSP provides numerous benefits for optimizing workforce management and procurement:

Streamlined procurement: By integrating an MVP into your MSP, your organization can consolidate supplier management efforts reducing your administrative workload. This streamlines procurement by centralizing supplier selection, negotiation, and management, along with performance tracking responsibilities reducing administrative burdens and potential redundancies, freeing up your internal resources for more strategic tasks.

VMS selection and implementation: Organizations often face difficulty in selecting the optimal vendor management system (VMS) from the range of options available on the market. The master vendor aids in choosing the VMS and ensures smooth implementation, mitigating challenges often faced in VMS adoption.

Simplified supplier environment: An MVP within an MSP helps simplify the supplier environment. Instead of dealing with multiple suppliers, your organization interacts primarily with the master vendor. This simplification can lead to improved coordination, communication, and accountability.

Enhanced cost control: Integrating an MVP within your MSP gives your company more effective cost control. The master vendor can negotiate bulk rates or volume discounts on behalf of your organization, resulting in potential cost savings. Centralized billing and invoicing can help prevent discrepancies and improve financial visibility.

Efficient contingent workforce management: An MVP can help manage contingent workforce needs more efficiently. The master vendor can handle aspects such as recruitment, onboarding, scheduling, performance management, and compliance, ensuring a consistent and compliant workforce.

Improved supplier performance: The MSP can work closely with the master vendor to set performance expectations and key performance indicators (KPIs). This collaboration ensures supplier performance aligns with your organization’s needs and objectives.

Flexibility and scalability: An MVP embedded within your MSP provides flexibility and scalability. As your organization’s workforce requirements change, the master vendor can quickly adapt by adjusting the supply of temporary workers, addressing peak demand periods, and managing workforce fluctuations effectively.

Risk mitigation and compliance: A MVP within an MSP can help mitigate risks related to workforce compliance. The master vendor can stay up-to-date with labor laws, regulations, and industry standards, ensuring that the temporary workforce complies with legal requirements.

Consistent quality: The integration of an MVP and MSP ensures a consistent level of quality and service across your organization. The master vendor maintains high candidate selection, onboarding, training, and workforce management standards.

Strategic insights: By partnering with a master vendor through an MSP, your organization can gain valuable insights into workforce trends, industry benchmarks, and best practices. This strategic collaboration can help your company make informed decisions to optimize your temporary workforce strategy.

The bottom line

Embedding MVP within MSP yields efficiency, control over temporary workforce management, and improved business outcomes. The choice between MSP, MVP, or a combination should align with organizational needs. A workforce solutions provider, like Broadleaf, can offer personalized insights to guide a well-informed decision.

Contact us to learn more about MSP and MVP.

The post The Advantages of Integrating an MVP Into an MSP appeared first on Broadleaf Results.

What is an MSP?

A Managed Services Program (MSP) is a type of business processing outsourcing (BPO) that helps organizations manage their contingent workforce or temporary workers. Contingent workers can include contractors, freelancers, temporary employees, and other types of non-permanent staff. An MSP is a model where a managed services program provider oversees the entire contingent workforce program, including multiple suppliers. The MSP acts as the primary point of contact between your organization and the suppliers, managing every aspect of the contingent workforce program, from sourcing and recruiting to contract management, invoicing, and reporting. This includes facilitating requisitions, interview coordination, oversight of hiring and onboarding, sending invoices, payment processing, and reporting and analytics. The MSP will effectively align the right combination of suppliers—with proven performance in job categories specific to your organization—to provide an assortment of high-quality candidates that compete for each of your contingent hiring needs.

The MSP solution typically involves a contractual relationship between the client company and the MSP provider, which outlines the responsibilities and obligations of both parties. While the specific terms and conditions may vary based on the agreement, commonly addressed aspects include the scope of services, service level agreements (SLAs) and key performance indicators (KPIs), and governance and dispute resolution.

Related: What is MSP? Managed Service Programs: Explained

Benefits of using a managed services program solution

MSPs offer several benefits to organizations that rely on contingent workers, including:

• Multiple vetted diverse and uniquely skilled suppliers—with proven performance in job categories specific to your organization—all on a level playing field
• A highly agile model that can be seamlessly scaled up or down to adjust to market demands
• A program built to manage all labor categories across all locations while ensuring the highest candidate quality and most competitive rates
• A suite of technology provides advanced workforce analytics and reporting and viability into spend
• One contract and consolidated invoicing on one billing cycle
• Greater visibility into costs across 16 categories resulting in 8-20% savings
• Supplier-funded, ensuring no additional cost to your organization
• Reduced contingent labor lifecycles and time-to-fill rates

Related: How MSPs Drive More Holistic Total Talent Acquisition Solutions

Who uses an MSP?

Medium to large-sized companies across various industries utilize MSP solutions. If your company oversees a sizable or diversified contingent workforce population, you can consider outsourcing the management of these workers to an MSP provider. An MSP will improve recruiting process efficiency and assist in building a more robust applicant pipeline for your business, bringing in a steady stream of top talent.

What is an MVP solution?

A Master Vendor Program is a contingent workforce management solution where a single vendor acts as the primary supplier of temporary staffing to a client organization. In this solution, the master vendor is responsible for coordinating and managing the supply of contingent workers—from sourcing and recruiting to onboarding, invoicing, compliance, performance management, and offboarding. The master vendor (or primary vendor) has preferred status and is given priority for sourcing and filling requisitions and will only bring in other suppliers when they can’t fill the position.

The MVP solution typically involves a contractual relationship between the client company and the master vendor, which outlines the program’s expectations, service levels, and pricing structure. The master vendor then works with a network of staffing suppliers to fulfill your temporary staffing needs. Some MVPs specialize in specific industries or job functions, while others have experience working across various sectors.

Benefits of using an MVP solution

MVPs offer several benefits to organizations that rely on contingent workers, including:

• MVP owns recruitment with an 85-95% fill ratio
• Enhanced responsiveness, quality submittals vs. quantity, and quickest to submit
• Dedicated program and recruitment team with a single point of contact
• Standardized and efficient processes with consistent onboarding and compliance metrics
• Complete performance reporting with the Vendor Management System (VMS) tool
• Economies-of-scale pricing to create significant cost savings

Related: The Benefits to a Master Vendor Solution

Who uses an MVP?

MVPs are typically used by large organizations that have a significant contingent workforce or temporary staffing needs. These organizations may include corporations, government agencies, healthcare facilities, and educational institutions. This solution suits organizations with many suppliers who want to simplify their management and reduce costs. This solution can often be utilized in conjunction with an MSP program. In addition, MVPs can be particularly useful for organizations with a demand for similarly skilled workers and those operating in multiple locations.

Which is suitable for your company?

There is no one-size-fits-all answer to whether an MSP, MVP, or both is the right choice for your organization. A workforce solutions provider can assess your organization’s specific needs, objectives, and available resources to gain insights and guidance tailored to your situation and assist in making an informed decision. Regardless of your talent acquisition challenges, Aleron can work with your team to craft workforce solutions that deliver exceptional results.

Contact us to learn more about MSP and MVP.

This blog was written by Derrick Ryskamp.

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