Why Implement an Integrated MSP and VMS Model?

PRO UnlimitedBy PRO Unlimited 1 month ago
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PRO Unlimited’s COO and EVP Allie Ben-Shlomo shares her contingent workforce industry knowledge with editors at Buyers Meeting Point about the advantages of using an integrated Managed Services Program (MSP) and Vendor Management System  (VMS) model. Allie notes organizations that are not leveraging a MSP and VMS may be paying too much for contingent talent and are at risk of noncompliance with various labor and benefit laws. They are also likely to have challenges involving time to source quality talent.

Recognizing these issues, a growing number of companies now rely on some form of a managed program, but substantial room for further adoption still exists. The landscape of contingent labor management can prove very confusing, especially for organizations in the initial stages of assessing available options.

When assessing the current state of contingent labor programs, consider the following questions:

  • What non-employee population should be included in the managed program?
  • What is the global reach of the managed program on day one? Future states?
  • What engagement types should be in scope?
  • What criteria should be used to determine vendor inclusion and exclusion?
  • What legal and compliance exposure risks exist?
  • Is the war for talent being lost due to failures to adjust to recent market shifts?
  • How much is paid to individual workers, and how do these bill rates compare to market rates?

Reasons to Integrate

An integrated MSP and VMS model has many advantages over a disaggregated approach. Cost is certainly important. When dealing with two separate companies, there may be up-front costs involving tasks related to the initial VMS implementation, as well as ongoing costs for feature enhancements or added integrations. Additionally, when a company selects separate VMS and MSP providers, the VMS firm often charges for system enhancements, activation of new functionality (e.g. the SOW module for incorporating Services Procurement in the scope of the contingent workforce program) and implementation of such modules.

There are various other factors companies need to consider. Click on the article to read about these other factors in greater detail.

If you or a member of your team would benefit from a further discussion on how PRO can help you with your contingent workforce management program, please contact a PRO representative at 800.291.1099 or email at info@prounlimited.com.

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of PRO Unlimited and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.

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  Vendor Management SystemsWorkforce Management
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