Accepting the MSP as a supplier/staffing agency’s Best Friend | DCR Workforce Blog

Accepting the MSP as a supplier/staffing agency’s Best Friend

As news comes in, from a Staffing Industry survey,  26% of buyers are trying new suppliers, 59% in energy/chemical are consolidating with buyers while engineering/design skills are among the most interested in new suppliers; we are once again reminded of the debate about the resistance some staffing agents exhibit towards MSPs. Let us try and explore this phenomenon in detail.

Change always upsets the apple cart and there could be a strong negative reaction in a staffing agency when a MSP takes over the CW management for a customer. The staff may resent their perceived loss of power, their lack of freedom to roam the corridors of the customer in future and even feel that their efforts to cultivate a harmonious relationship with the customer were a waste of time and energy. They may also feel threatened or sidelined and feel that their value to the organization has diminished with this development and some of them may even start having nightmares with pink slips assuming ghoulish shapes.

Some of the staffing agency employees resist MSPs to an extent where they do not extend any co-operation or refuse to fulfill/perform their regular responsibilities and internal support duties which could undermine the functioning of the MSP’s staff. Such complications can be probably avoided by a planned transition which highlights the ways in which this alliance could prove to be a win-win for both the sides. A little managerial involvement upfront could assuage many doubts and fears and ensure the support and co-operation of the agency’s staff to the change. The staff may also recognize that there is no real loss of control as they still retain the relationship and the responsibility for contractual commitments and while relinquishing the burden of day-to-day operational requirements.

An MSP offers enormous operational advantages and assumes responsibility for contingent risks while bringing in value through meeting all the project deadlines and performance criteria, offering scalability in service delivery that the staffing agency may never be able to manage in-house.  The significant and undoubted economic and service value brought in by the MSP helps the provider to plan internal activities and resources better. By accepting these advantages and assimilating them, the company could achieve superior overall performance.

  • The staffing agency starts to save on wasteful marketing efforts/costs as requisitions come without the sales person having to make multiple visits to the hiring manager, leaving that time free to spend on cultivating a new customer relationship.
  • Administrative costs are reduced as the MSP generates automatic payments.
  • No time or effort needs to get wasted on tracking payments or collecting timecards from contractors.
  • The MSP provides a single point of contact for all CW related issues and provides advance notice of upcoming requirements, improving the response time.
  • The organization is free to focus its IT resource on delivering strategic benefits rather than repetitive services.

Of course, people sometimes resist change when they feel that it has been adopted for the worse, and it pays to keep alert for any possible issues with the MSP in the initial stages to ensure that the arrangement is functioning in an efficient and harmonious manner.

The content on this blog is for informational purposes only and cannot be construed as specific legal advice or as a substitute for competent legal advice. They reflect the opinions of DCR Workforce and may not reflect the opinions of any individual attorney. Do contact an attorney for advice specific to your issue or problem.
Lalita is a people/project manager with extensive experience in operations, HCM and training and development across industries like banking, education, business consulting, BPO and information technology. She believes in a dynamic approach to life and learning as change is the only constant.