MSP in Staffing

Key takeaways

• A “staffing MSP” refers to specialist outsourcing businesses that manage the full recruiting cycle for temporary/contingent workers. The MSP uses a supporting agency recruitment supply chain and/or its own resources to deliver the customer’s scope of staffing need.
• The Vendor Management System (VMS) is often included with a “staffing MSP” as it takes into consideration the “vendor management system” pricing and requirements of an enterprise to fulfill the requirements.
• TRS Workforce Solutions is one of the top staffing MSPs in the market.

What is a staffing “MSP”?

According to Research Dive the growth of the MSP (Managed Service Provider) market (or “managed services market”) is expected to balloon to a $594.8 billion dollar industry by 2031. According to the report “surging from $205.5 billion in 2021, at a noteworthy CAGR of 11.3%”

According to ConnectWise and the MSPAlliance, in 2019, more than 40,000 managed service providers (MSPs) were “in-market” (or in business).

Staffing MSPs account for the end-to-end management of a contingent workforce. This is both temporary staffing and can include permanent staffing efforts.

For more information on the definition of an MSP, read our guide right here.

How contingent staffing works

Contingent staffing is the 'end-to-end' management of the recruitment cycle. It covers:

• Defining and implementing an effective recruitment strategy based on analysis of talent types needed by the customer
• Defining and implementing a hiring and staffing plan
• Defining and implementing a candidate attraction and engagement strategy
• Connecting with the best-placed supporting staffing recruitment (vendor) agencies to meet customer scope needs
• Screening and verification of candidate credentials
• Managing all communications
• Managing the interview process
• Managing the offer process
• Completing all pre-start compliance needs
• Onboarding of the new hires
• Ongoing management of contingent workers covering Payroll, Admin, HR, logistics, HSE, Industrial Relations, etc.

MSP staffing pricing models

Pricing models of MSPs that are focused on staffing have evolved over the past few years. The two most common models are:

Gain Share:

The MSP shares in the measured return-on-investment

Cost-plus model

The cost of its services (where a VMS pricing structure can come into place) and includes the "managed risk" structure within the pricing. 

More MSP resources

More resources about MSPs (managed service providers):

1. MSP meaning in business
2. What is a "Managed Service?"
3. What is a "Managed Service Provider?"

Common questions

What is VMS and how is it different from MSP?

VMS is "vendor management system," and mostly describes the software used for the staffing functions making up the recruitment and contingent management cycle. While "MSP" refers to the complete "managed service" of the end-to-end staffing requirements of the business.

What do TRS Workforce Solutions offer?

As one of the leading staffing MSP providers in the recruitment sector, we oversee the recruitment and management of an organisation's contingent workforce. This includes designing, implementing, and managing the program, reporting, tracking, recruitment supply chain and invoice consolidation.