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            2 min read

            MSP 101: What to Know When Working with a Master Service Provider

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            A Master Service Provider (MSP) is a company contracted by another company to provide large numbers of non-employees or independent contractors. These contractors are located through additional staffing agencies that work underneath the MSP.

            Your MSP will oversee the entire hiring process – from finding workers to paying them. Your company need only contact the MSP to get answers about a specific contractor or position, rather than making dozens of phone calls. This standardizes the hiring process and guarantees all contractors meet a series of classifications and regulatory compliances before coming to work.

            If your company has large-scale hiring needs and is looking to fill these positions at competitive rates, it might be time to consider an MSP.

            Why should my company use an MSP?

            There was a time when companies did everything alone, hiring a company lawyer, human resources manager and accountant. Now, these services are outsourced, making it easier for companies to focus on customer and employee retention.

            There are many benefits to using an MSP, including an improved bottom line, competitive rates, a streamlined process and a single point of contact. Estimates show that anywhere from 60% to 80% of all Fortune 500 companies have adopted the MSP model for staffing.

            How is an MSP organized?

            There are three primary models used to organize an MSP, including:

            • Vendor Neutral Model – Forbids the MSP from participating in the staffing program as a vendor, thus avoiding potential conflicts of interest.
            • Hybrid MSP Model – Allows the MSP to participate in the staffing program.
            • Vendor On-Premise Model – You, the client, select a primary staffing agency though your MSP. That agency will be responsible for all of your hiring needs.

            In practice, an MSP is a small team of people who oversee the staffing program on-site. Each MSP employs a manager, industry specialists, hiring experts, and administrative personnel.

            How do I select an MSP?

            You may choose an MSP based on a variety of factors, including:

            • Size – Large companies that need thousands of contractors will choose an MSP that matches their scale.
            • Industry – Healthcare companies choose an MSP that focuses on healthcare. Manufacturing companies on MSPs that focus on manufacturing. Every MSP focuses on a specific industry.
            • Geography – If you need a local MSP, you’ll have less options available. However, you’ll get the benefits that come with physical knowledge and assistance.
            • Experience – The more experience an MSP has, the more likely you’ll see impressive results.

            At nTech Workforce, we assist businesses in their quest to find skilled employees and contractors on a regular basis. Contact our team today to learn more.

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