Did You Know? A Managed Services Provider Helps Ease Onboarding

In this “Did You Know” series, we’ll explore many ways that a Managed Services Provider (MSP) in the contingent workforce space can help your business – from streamlining processes to gaining better insights into your analytics.  

Today’s focus is on how managed service providers simplify onboarding for contingent workers, particularly for mid-market companies. 

In the current dynamic business environment, mid-market companies are increasingly relying on contingent workers to stay agile and competitive. However, managing a flexible workforce comes with its own set of challenges, particularly when it comes to onboarding. This is where Managed Service Providers (MSPs) step in, offering a simplified and efficient approach to contingent workforce management. Let’s explore how MSPs are revolutionizing the onboarding process for mid-market companies. 

The Onboarding Challenge for Mid-Market Companies 

Mid-market companies often find themselves in a unique position. They need the flexibility and scalability offered by contingent workers…but they may lack the robust infrastructure and resources of larger enterprises to manage them effectively. This can lead to several pain points in the onboarding process such as: 

• Time-consuming administrative tasks 
• Inconsistent onboarding experiences 
• Compliance risks 
• Difficulty in tracking and managing multiple workers 
• Inefficient resource allocation 
• Inconsistent rates paid across the organization for similar skills 

Enter the Managed Service Provider Solution 

MSPs specialize in optimizing contingent workforce management, including the critical onboarding phase. By leveraging their expertise and technology, mid-market companies can transform their onboarding process into a streamlined, efficient operation. 

Key Benefits of MSP-Managed Onboarding 

Extensive research studies have demonstrated that an effective onboarding program can cut time to start by days or weeks, which can translate into earlier project starts and faster completion of deliverables that accelerate your business. 

The benefits are numerous including:  

Centralized Process Management

MSPs provide a single point of contact for all onboarding activities. This centralization offers several advantages: 

• Reduced administrative burden on internal teams 
• Consistent onboarding experience across all contingent workers 
• Improved visibility and control over the entire process 

Technology-driven Efficiency 

Most MSPs utilize advanced Vendor Management Systems (VMS) and specialized applications to automate and streamline onboarding tasks. These include:  

• Digital document collection and verification 
• Automated background checks and screenings 
• Electronic onboarding instructions and orientation materials 
• Real-time tracking of onboarding progress 

Ensured Compliance 

For mid-market companies, staying compliant with labor laws and regulations can be challenging. This is particularly true when there are extensive laws at the Federal, state, and local levels. MSPs bring expertise in this area: 

• Up-to-date knowledge of local, state, and Federal regulations 
• Standardized processes to ensure consistent compliance 
• Regular audits and reporting to identify and address potential issues 

Cost Controls 

By streamlining the onboarding process, MSPs help mid-market companies reduce costs. Examples include: 

• Decreased time-to-start for new contingent workers 
• Reduced administrative overhead 
• Minimized risk of costly compliance violations 
• Standard rates reflective of job title, level, and location 

Scalability and Flexibility 

As mid-market companies grow and their workforce needs evolve, MSPs can easily scale their services. For instance, Managed Service Providers are easily able to:  

• Quickly ramp up onboarding during peak hiring periods 
• Flexibly adjust processes as business needs change 
• Access and provide greater talent  

Implementing Onboarding: Best Practices for Mid-Market Companies 

To maximize the benefits of MSP-managed onboarding, mid-market companies should consider the following best practices: 

Define Clear Objectives – Before engaging an MSP, clearly outline your onboarding goals and pain points. This will help in selecting the right provider and tailoring their services to your needs. This, and many other topics, is discussed during nextSource’s Discovery sessions.  

Integrate with Existing Systems – Work with your MSP to ensure the chosen VMS system r integrates seamlessly with your existing HR and payroll systems. This integration is crucial for maintaining data consistency and streamlining overall workforce management. nextSource has successfully integrated the major VMSs with major HRIS solutions in virtually client implementation.  

Customize the Onboarding Experience – While standardization is important, also work with your MSP to customize certain aspects of the onboarding process to reflect your company culture and specific role requirements. Onboarding requirements may vary by job or by location.  During implementation, nextSource works with all of your functions and business units to identify and accommodate requirements, avoiding changes after the program is operational.   

Prioritize Communication – The leading cause of contingent workforce management program failures is the lack of engagement of your internal constituents.  A clear change management program should be defined during implementation, identifying priorities and expectations and defining clear two-way communication channels between all audiences. Regular check-ins and feedback sessions can help continuously improve the onboarding process. Also ensure that training is audience-specific, easily understood, reinforced through effective documentation and “shoulder-to-shoulder” support.  And keep in mind that change management must continue beyond the day the program becomes operational.   

Leverage Data and Analytics – Effective MSPs take the data generated by the VMS and other applications, analyzes the data, and generates insights into program performance and potential future trends that may create challenges and opportunities.   Onboarding patterns can provide insight into seasonal spikes, optimal worker types, and opportunities for streamlining onboarding and enhancing the candidate/worker experience. 

The Future of Contingent Workforce Onboarding 

There are more than 3 million staffing agency contract workers on assignment in the U.S. each week, and four times as many independent contractors. Together, they represent 45% of the U.S. workforce. Highly successful companies have learned to harness this power, forging high performing workforces. As the contingent workforce continues to grow, the role of MSPs in simplifying and optimizing onboarding processes will become increasingly crucial. For mid-market companies, partnering with an MSP offers a competitive edge, allowing them to access the benefits of a flexible workforce without the associated management complexities. 

By embracing a Managed Service Provider, mid-market companies can create a more agile, compliant, and efficient contingent workforce management system. This not only improves the onboarding experience for workers but also drives better business outcomes through increased productivity and reduced costs. 

In an era where talent acquisition and management are key differentiators, mid-market companies that leverage MSPs for contingent workforce onboarding are positioning themselves for success in the evolving world of work.