A managed service refers to the practice of outsourcing the management and provision of certain services to your business. Often this can be IT services but it also extends to transportation, supply chain management and staffing & recruitment. In recruitment and staffing, managed service providers (MSPs) bring expertise in the recruitment and management of temporary staff.
Companies often turn to a managed service provider to assist with their business needs, especially at times of increasing demand. MSP’s are the alternative to augmenting existing staff and processes. They ensure a business derives the most value, flexibility and skills access from process turned over to them whilst keeping fixed costs to a minimum.
What does the economic picture mean to business and their staffing needs?
Through 2016/17 the UK economy, wages and employment have been on the rise. The use of temporary employment has grown through the crisis of 2008 and subsequent recovery. This picture has been replicated across the EU and is seen as a driving component of the recovery. What is most interesting, for businesses, is that the majority temporary workers seem happy with their non-traditional working arrangements.
For businesses increasing their use of temporary staff as a way to cope with increased consumer demand, this means being able to keep fixed costs down whilst maintaining a suitably sized workforce. As any business grows it can move into different areas of operation, needing increased supply chain or distribution channels – such as building a home delivery network. These areas can bring new sets of employee and business operation regulation.
Using an MSP gives the business access to a suitably qualified workforce but ensures that both workers and employers are fully compliant with any and all regulations pertaining to their market. Compliance management, reductions in fixed costs and the recruitment of highly qualified staff are just some of the strong arguments for using a managed service provider.
Why should you use a managed service provider?
de Poel is a managed service provider specialising in procurement outsourcing for temporary workers. As the UK’s largest purchaser of contingent/ temporary labour we have over a decade’s experience in helping businesses actualise the benefits of using temporary workers to transform their company. We have developed an extensive network of over 3,500 recruitment agencies across the UK which gives de Poel influence within the recruitment industry. This has helped us achieve cost savings for our clients. On average de Poel reduces agency labour costs by 6-12%.
A business won’t benefit from using an MSP (even if fixed costs are lowered and compliance is assured) if it ultimately leads to either more administration on the part of the business, tying up valuable resources or is enacted through a process which is unclear. At de Poel, we believe in giving our customers visibility and control over how they use our services with real-time information including analysis of time worked and money spent. Our processes are streamlined via an online system updated in real-time.
Furthermore, de Poel is a truly independent neutral vendor. This means we have no interest in maximising any agency’s margins. We earn a free from what we save, rather than what we cost. This a is model that is widely adopted in the private health care sector and has been proven over the last 16 years where standardised, transparent pay rates and fixed pound agency margins have been implemented. The net effect is a lower agency bill – typically 20% lower – that can be sustained over the long term. Eliminating competition on price then ensures a temp is hired on quality, rather than price.
For more information on de Poel and how we could help your business become more inclusive, you can call us on 01565 682033 or follow us on LinkedIn.