January 12, 2023

Everything You Need to Know About MSP Staffing

Managed Service Providers, or MSPs, have become an increasingly popular option for businesses looking to outsource their staffing needs. But what are MSPs, and is this the right solution for your organization? In this article, we will define MSP staffing and discuss the benefits of working with an MSP. We'll also take a look at how an MSP works and what it costs. By the end of this article, you should have a good understanding of whether or not managed service provider staffing is the right choice for your business!

What are managed service providers?

Managed Service providers (MSPs) offer a comprehensive solution for businesses looking to outsource their staffing needs. MSPs will work with your organization to understand your specific staffing requirements and then provide a team of highly-skilled workers to meet those needs. Typically, MSPs will manage all aspects of the staffing process for you, from recruiting and screening candidates to onboarding and training new employees.

MSPs can be a great solution for businesses of all sizes, but they are especially well-suited for small and medium-sized businesses (SMBs) that do not have the resources or expertise to manage their own staffing needs. MSPs can also be a great option for enterprise clients that have high turnover rates or fluctuating staffing needs.

If you are considering working with a MSP, there are a few things to keep in mind. First, be sure to choose a MSP that has experience staffing for your specific industry. Second, be clear about your organization's needs and objectives, so the MSP can provide you with a tailored solution. Finally, be sure to compare pricing and services from multiple MSPs to find the best fit for your organization.

What are the benefits of MSP Staffing?

There are many benefits of working with an MSP, including:

  • Access to a large pool of high-quality candidates: MSPs have access to a vast network of potential candidates, which means they can quickly find the right person for your organization.
  • Cost savings: MSPs can often negotiate lower rates with staffing agencies, which can save your organization money.
  • Increased efficiency: MSPs will manage all aspects of the staffing process for you, so you can focus on running your business.
  • Flexibility: MSPs can scale up or down your staffing needs as required, so you're never over or understaffed.
  • Increased productivity: MSPs can help improve your organization's overall productivity by providing access to skilled workers who can hit the ground running and get the job done quickly and efficiently.

If you're considering working with an MSP, these are just some of the benefits you can expect. MSPs can save your organization time and money while increasing your staffing flexibility and efficiency.

How does staffing through a Managed Service Provider work?

If you're interested in working with an MSP, the first step is to contact a reputable provider and discuss your needs. The MSP will then create a customized solution for your organization, which may include recruiting and screening candidates, onboarding and training new employees, and managing the entire staffing process for you. Once you've agreed to the terms of service, the MSP will start sourcing candidates and filling positions within your organization.

Managed Service Providers can help your business with a variety of staffing needs, from recruiting to onboarding to training. MSPs offer many benefits to businesses, including the ability to scale up or down quickly, access to a larger pool of talent, and cost savings. 

MSPs offer a comprehensive solution for businesses looking to outsource their staffing needs. When you partner with an MSP, you can focus on your core business goals, leaving the staffing and recruiting to the experts.

What does an MSP cost?

As Managed Service Providers (MSPs) have become increasingly popular, two models have emerged to dominate the market: supplier-funded and client-funded. Under a supplier-funded model, a percentage of invoices billed by a supplier is held back to cover program costs. As a result, there are no direct costs to the client. In markets where mark-up is low, however, some suppliers may be unwilling to participate in such a program or hold back their best talent for other clients.

In a managed services agreement, the client pays a fee to their Managed Service Provider (MSP) partner. The MSP then provides staffing managed services to the client organization. This type of arrangement can be beneficial for organizations because it can help ensure that suppliers deliver a higher quality of talent more quickly. 

Furthermore, managed services can be customized to the client’s specific needs, making it easier to find the right supplier.

When considering a MSP program, it is important to compare pricing models and understand all associated costs. Here are some common questions that will help you determine the cost of an MSP:

  • What is the MSP’s fee?
  • Are there any other associated costs, such as a technology fee or a set-up fee?
  • How does the MSP calculate its fees?
  • What is included in the MSP’s managed services agreement?

The cost of an MSP depends on several factors, including the services provided, the size of the client organization, and the length of the managed services agreement. MSPs typically charge a monthly fee, which can be either fixed or variable. 

Fixed fees are based on a set number of hours that the MSP will work each month. Variable fees are based on the actual number of hours worked by the MSP each month. 

MSPs may also charge a technology fee, which covers the cost of the software and tools used to manage the client’s staffing needs. In some cases, an MSP may charge a set-up fee to cover the costs of onboarding the client and getting them started with the managed service agreement. 

To get an accurate estimate of the cost of an MSP, it is important to request proposals from multiple providers and compare their fees. When evaluating proposals, be sure to consider the total cost of ownership, which includes both the direct and indirect costs associated with the managed service agreement. 

The direct costs include the MSP’s fees, any technology fees, and any set-up fees. The indirect costs include the cost of internal staff time spent managing the managed services agreement, the cost of any training required to use the software and tools provided by the MSP, and the opportunity cost of not having access to the best talent in the market. 

Is partnering with a Managed Service Provider right for your staffing needs?

Now that you understand how managed services providers work and what they cost, you can start to evaluate whether an MSP is right for your organization. 

There are many benefits of partnering with an MSP, including access to a larger pool of talent, increased efficiency in the hiring process, and improved quality of hires. However, there are also some potential drawbacks to consider, such as the cost of the managed services agreement and the loss of control over the staffing process. 

To help you make a decision, here are some questions to ask yourself:

  • What are my organization’s staffing needs?
  • How large is my organization?
  • How much internal staff time do I have to dedicate to managing the recruitment and staffing process?
  • What is my budget for a managed service agreement?
  • What is the quality of my organization’s current hires?
  • How important is it for my organization to have control over the staffing process?

If you decide that partnering with an MSP is right for your organization, the next step is to find the right provider. 

To find the best Managed Services Provider for your needs, start by asking for recommendations from other businesses in your industry. You can also search online for MSPs that specialize in serving businesses like yours. 

When evaluating potential providers, be sure to check references and reviews. Once you’ve narrowed down your list of options, request proposals from each MSP and compare their fees, services, and contract terms. 

The right Managed Services Provider will be a partner that you can trust to help you meet your staffing needs. By working with a MSP, you can focus on your core business while they take care of the rest. 

Amber Crawford

I am honored to be the Executive Vice President of Koncert Technology Sourcing Solutions, a managed service provider offering Information Technology and Healthcare services to Fortune 500 companies. I have worked hard to make Koncert what it is today and I am proud of my accomplishments and achievements as a leader in this industry. My passion for creative problem-solving, coupled with my eye for detail, has enabled me to be successful in this role. Beyond work, I enjoy giving back to the local community through volunteering, attending live music events, and spending quality time with family.

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