The ability to attract and retain the best contingent staff is a challenge for all business types across all sectors. However, recent research suggests that the widely used managed service provider (MSP) model is actually making it more difficult for organisations to attract the talent they need.

Issues with control, visibility, accountability, risk and quality prompted the initial adoption of the MSP model. Its aim was to help organisations meet the challenge to better respond and react to variations in demand for labour. However, there is the suggestion that the existing MSP model has failed to keep pace with this change.

So how can employers in need of a steady flow of good quality temporary workers tackle the problem and get more from their recruitment relationships:

1. Better Payment Terms

Typical MSP models are based on a ‘pay when paid’ approach. This means that the recruitment businesses only get paid when the client pays their invoice. This could mean they pay the worker 30, 45 or even 60 days before they receive the money. This is a major problem for cash flow, particularly for small and medium sized businesses. As a result many excellent, niche recruitment businesses, with access to great local talent, have become reluctant to engage with MSP arrangements. The Infinity model is founded on an engaging supplier model to pay the recruitment business their margin as soon as the timesheet is approved.

2. Partner with Small and Medium Sized Recruiters

Smaller recruiters are typically more flexible and responsive, have greater niche expertise and local knowledge. They are perfectly placed to develop relevant local talent pools and deliver workers on short notice. However managing multiple small or niche supplier relationships can be a strain on time and resources. A model that gives businesses access to a broad base of these smaller recruitment suppliers, who are positively engaged with attractive payment terms, has the potential to deliver much better results.

3. Support Reduced Risk

Recruitment agencies are exposed to significant risk from a compliance perspective when dealing with temporary workers. As an employer, it is important to ensure that the suppliers you use are fully compliant in an increasingly complex legislative landscape. The right MSP model will ensure you have peace of mind that all suppliers are as committed to sound, ethical and socially responsible practices as you are. By taking over the payroll and legislative responsibilities the right solution will both support your organisation and the recruitment businesses supplying workers.

4. Make it Fair and Equitable

Many managed service recruitment solutions are biased towards a single or small group of recruitment suppliers. Particularly when the solution provider has an affiliation with a specific consultancy. A genuinely neutral model in which all suppliers have an equal opportunity to engage is ultimately more likely to ensure the best workers are supplied to your business as a priority.

5. Open Communication

Having a positive relationship with the recruitment businesses you partner with so they fully understand your needs and support your Employee Value Proposition, will ensure you have access to the best skilled workers who want to work for you. If you are engaged in or considering an MSP model, then one with a culture of openness and a focus on positive outcomes for all stakeholders is key.

Contact Infinity if you would like to find out more about how our new approach to collaborative skills sourcing could help you source more, better quality temporary workers.