A new year is upon us and it’s time to start gearing up for your first quarter business reviews. As you examine the performance of your staffing MSP, it is important to know exactly what it is you are measuring and the factors that truly determine success. Most people evaluate their MSP on factors like efficiency and cost savings, but those metrics alone only tell part of the story.
“Find the right team to support your VMS model is mission critical. Focus on the “engagement” of your MSP prospects and then drill down on the “value add” so you can select the team that aligns the best with your team. Learn, Understand, Evaluate, Execute, Support THEN Identify, Qualify, Engage, Measure, and Support. This evolution is instilled in the CSSvSource team and they are ready to under promise and over deliver!” Says Sharon Tsao, CMO, Contemporary Staffing Solutions.
Use these strategies to dig deeper as you evaluate the performance of your MSP.
Looking Beyond Time-to-Fill
Time-to-fill is one of the most common measures of MSP efficiency, but businesses rarely dig any deeper. It is difficult to determine whether your MSP is shortening your cycle time if your hiring managers are slow to act once they receive candidates. According to one case study of a business unhappy with cycle time, supplier response only accounted for 10% of the total cycle time while hiring managers were responsible for 85% of the cycle time.
When reviewing your MSP’s service, make sure isolate their response time when looking at critical metrics like time-to-fill. Only by isolating it, can you determine just how fast your suppliers are moving.
Measuring Cost Savings
Companies tend to look at bottom-lines costs when determining whether or not their MSP is delivering on its promises, but again, it is important to dig deeper. There can be a lot of hidden costs you haven’t even thought of. Some companies run into issues with administrative glitches like incorrect overtime submissions or invalid cost allocations from external systems, for example. These types of “small” issues can be costly if they occur over and over again.
Supplier Performance and Quality
Businesses often look at response time when scoring suppliers and they tend to reward those who respond the fastest to requisitions. While fast response time is important, this is not the best indicator of success. It is critical to determine whether or not fast response time equates to better candidates and a quicker hiring decision, otherwise, it has no real value.
Is It Time To Look For A New MSP?
Often, when companies dig beyond surface metrics they determine that it’s time to seek out a new MSP. If you are not receiving the value you should from your current partner, it’s time to start investigating new avenues. As you do, make sure to consider things like:
- The data an MSP uses to isolate their metrics and provide context for their results.
- The MSP’s ability to scale quickly as your needs change over time.
- References and success stories from companies similar to your own.
- Experience in your industry.
Remember, the more work you do up front, the better. Learn from any previous mistakes you made with an MSP and choose a partner that not only has solid processes and reporting, but also knows your industry.
“Remember, the more work you do up front, the better. Learn from any previous mistakes you made with an MSP and choose a partner that not only has solid processes and reporting, but also knows your industry.” Says Andrea Micucio, CSSvSource Program Manager.
If you are ready to realize the business benefits of working with an experienced MSP with a proven track record of success and a commitment to data transparency and visibility, the team at CSS vSource is here to help. Call us today at 856-222-0020 to learn more about the ways managed services can help you achieve your contingent hiring goals.