January is often the time of year when many businesses reflect on their strategies for the forthcoming year to ensure they are maximising their opportunities with both new and existing clients.  Many contract recruitment agencies, who compete with other agencies on clients PSL’s, are looking for ways they can differentiate themselves and increase the number of roles they can place.  One way to do this would be to offer the client an MSP service, where your agency becomes the main supplier, and you deliver the full contractor management service to the client including managing the other recruitment suppliers.  MSP delivery is often viewed as only an area that the large employment agency business can deliver, however, there are now providers who can deliver the required software solutions and other services at a cost point that enables a traditional recruiter to make the jump to become an MSP.

What does an agency-focused managed service provider do?
A recruitment-managed service provider (MSP) is a specialised entity dedicated to delivering, overseeing, and enhancing essential business services for other organisations. Recruitment MSPs cater to the needs of agencies, particularly small and medium-sized businesses. These agencies rely on MSPs to handle specific day-to-day management tasks related to workforce management, ensuring smooth operations in areas such as recruitment, onboarding, and talent acquisition.

By regularly managing these services, MSPs enable organisations to concentrate on enhancing their operations without being concerned about prolonged system downtimes or service disruptions.

"MSPs can offer a comprehensive contractor management service, streamlining processes for clients."

Benefits of MSPs for Agencies

1. Improve Client relationship 
MSPs often act as a single point of contact for clients, simplifying communication and coordination. This approach can enhance the overall client experience and strengthen the relationship between staffing agencies and their clients.

2. New revenue stream
Engaging with an MSP can open up new revenue streams for staffing agencies. In addition to traditional recruitment fees, agencies may receive compensation for managing the end-to-end hiring process, providing additional services, or taking on more strategic roles within the client's workforce planning.

3. Long-term contracted revenue 
MSPs often operate on long-term contracts, providing staffing agencies with a predictable and stable revenue stream. This can be particularly valuable for agencies looking to establish financial stability and plan for future growth.

4. More roles – Increasing recruitment fees 
By partnering with an MSP, staffing agencies may gain access to a larger volume of job roles from a single client. This increased demand for talent can result in higher recruitment fees, contributing to improved financial performance for the agency.

5. Agile for smaller agencies 
MSPs can offer smaller agencies the flexibility and scalability needed to compete with larger agencies in the market. Smaller agencies can leverage the resources and infrastructure of the MSP to take on more significant projects and meet the evolving needs of their clients.

6.Access to specialised expertise
MSPs often have specialised expertise in workforce management, technology, and compliance. By using an MSP, staffing agencies can use this knowledge, enhancing their ability to deliver high-quality services to clients and stay competitive in the market.

How managed software can help!
Choosing Managed Service Providers (MSPs) is a smart move for agencies. MSPs offer all-in-one solutions, covering everything from onboarding to payroll. This means agencies can streamline their processes and save time. The software provided by MSPs is made specifically for each agency, ensuring it grows as the business does. 

In the competitive world of staffing, especially with Preferred Supplier Lists (PSLs), many agencies are turning to Managed Service Provider (MSP) services as a strategy. Thanks to technological advancements, even smaller agencies can now use the tools needed to offer MSP services. This not only sets agencies apart but also allows them to provide effective and streamlined solutions.