MS D Alternative

A growing alternative is the use of a traditional staffing firm as the Managed Services Provider as described in the "Structure One and Structure Two" examples. There are numerous advantages to selecting a Managed Services Provider that has pre-established contractual alliances with one or more VMS vendors. However, because a non-VMS solution may be a better solution in some situations, organizations should consider aligning with a staffing partner that can implement with or without a VMS tool.

Managed Services Features	Managed Services Benefits
Standard, company-wide rates for skills.	Eliminates widely varying rates for identical skill sets.
A defined list of supplier(s).	Guarantees set price, reduces "maverick" spending, and ensures volume discounts.
Single supplier for permanent and contingent talent.	Reduced costs, volume discounts, single staffing agreement.
Simple job requisition process.	MSP assumes all responsibility to produce the right candidate.
Cost and efficiency reports.	MSP consolidates data and produces standard and customized performance reports.
MSP becomes extension of the internal staffing team.	Screening process tailored to the individual business' corporate culture.
Uniform accounting for contingent labor.	Consolidated worker invoices and streamlined Accounts Payable process.

A key benefit of Managed Services is the establishment of standard, firm-wide rates. In typical organizations that have not implemented a Managed Services program, many hiring managers directly negotiate rates with a staffing firm for each temporary worker hired. But in many cases, hiring managers do not have sufficient knowledge of prevailing rates. Often times separate business units within a company pay widely varying rates for identical skill sets and experience levels.

With a single supplier as overseer, there is greater likelihood for reduced costs and/or volume discounts as well as the consolidation of many staffing agreements to a single contract. There are also accounting and reporting benefits. Since all individual contingent worker invoices are consolidated, the accounts payable department saves time in processing and remitting invoices. The Managed Services Provider consolidates data and produces standard performance reports with the potential for customized reporting to fit specific needs. Standardized time sheets lessen the possibility of managers being confused by a myriad of time sheet formats and disparate time sheet deadlines.

A Managed Services program also defines a list of supplier(s), helping organizations control "maverick" spending with non-approved vendors at rates that are higher than the company's standards.

Managed Services provides a simple process for informing the staffing partner of a job requisition. The MSP assumes all responsibility for enlisting any necessary Tier 2 staffing firms or subcontractors to produce the right candidate in a timely manner while ensuring compliance with the standardized rate structure. As the MSP becomes a true extension of the company's staffing team, it develops an in-depth knowledge of the work environment and is better qualified to screen for candidates that will excel in the company's corporate culture. As a result, internal managers spend more time interviewing and selecting the best-fit candidate, and spend less time screening.