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When to consider a managed services program (MSP)

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When to consider a managed services program (MSP)

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Managed Services Programs (MSP) are a business solution where a company outsources the management of their contingent workforce. MSP partnerships have many benefits, including cost savings, process efficiencies and improved quality of hire in temporary workforce management. On average, MSP partnerships can deliver 10-20 percent cost savings in the first year.

The Hudson RPO talent experts have driven exceptional results in many different MSP partnerships. Based on their expertise, these are the four signs that tell you it’s time to consider an MSP.

1. Lack of talent vendor oversight:

Managing a contingent workforce often means managing multiple talent vendors and agencies. A lack of clarity around the size of the contractor workforce, who is employed, how much they are paid or how long they have been employed opens risks around costs and employment claims. If this resonates, an MSP can provide the solution you need.

Acting as a centralized point of contact, your managed service provider can streamline vendor processes, consistent performance, and reduce costs while providing one source of truth. This frees up time for you to focus on your core business with clarity and better insights into your contingent workforce.

2. Rising flexible workforce costs:

When scaling regionally or globally, managing costs associated with a flexible workforce can be challenging. If you find yourself with increasing costs without clearly understanding where the expenses are coming from, an MSP can help.

The MSP model of your choice will either centralize workforce management with one vendor or let the MSP handle vendor contracts. Your dedicated talent experts also bring expertise in optimizing cost structures and identifying cost-saving opportunities. Engaging a Managed Services Program provider will help you manage and control your contingent workforce costs.

3. Concerns about labor laws and compliance:

Navigating labor laws and regulations can be complex, especially when managing a contingent workforce across different regions. A managed services program can provide the necessary expertise to help you meet legal obligations and ensure compliance.

The talent experts in a managed services partnership bring a wealth of knowledge and understanding of legal requirements. They ensure your contingent workforce is compliant while managing the hiring process end-to-end. This opens up all the opportunities of a flexible workforce while minimizing risk.

4. Changing contingent talent needs:

Does your organization experience fluctuating talent needs due to project-based work, seasonal demands, or business growth? An MSP can offer the flexibility required to scale your contingent workforce up and down as required.

MSPs have access to a vast talent pool of qualified candidates and the ability to source talent promptly. They can help you build a dynamic contingent workforce with access to the right talent to drive your business success.

Is MSP right for you?

If any of the above signs resonate, it might be time to consider a Managed Services Program. Learn more about our MSP solution or speak to one of our talent experts today.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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What is a managed services program (MSP)?

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What is a managed services program (MSP)?

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MSP stands for Managed Services Program. It is a business model where a company outsources the management of its contingent (or contractor) workforce to a third-party expert. MSP partnerships drive cost savings, process efficiencies, and reduced risk through compliance. In our experience, an MSP partnership can deliver on average 10-20 % cost savings in the first year.

What does an MSP provide?

A managed services program provider takes care of your contingent workforce recruitment process, from recruitment of contractors to process optimization. Different models exist, and which one is right for you depends on your unique talent requirements and goals.

  • Direct Sourcing MSP Model

    In the Direct Sourcing MSP Model, one provider takes care of contingent workforce management and directly sources a percentage of the temporary workers. In this case, the MSP takes care of payroll with a single invoice for the client, and a single time-sheeting process for hiring managers and contractors.

  • Master Vendor Model  

    The Master Vendor Model involves one provider who is responsible for sourcing and placing candidates. The provider is also responsible for the contract management and payrolling of the contingent workers, including invoicing.  

  • Vendor Neutral Model 

    In the Vendor Neutral Model, one provider manages the contingent workforce but via third-party agency suppliers who continue to payroll their own contractors. 

With a commitment to data integrity, security and privacy, Hudson RPO’s contingent workforce solutions ensure on-going compliance, accuracy and risk mitigation for our client partners.”

- Carla Morris, Client Solutions Manager

How are MSP solutions customized?

As customized solutions, you decide the level of involvement you require from your MSP partner. Depending on your solution and service level agreement, a managed service partnership can include the following:  

  • Customized contingent workforce strategies based on industry insights  
  • Implementation of contractor management technology  
  • Streamlined onboarding and off-boarding  
  • Regional and multi-national labor law compliance

When should I consider an MSP partner?

A Managed Services Program is the right choice when you lack visibility, control and cohesion across your contingent workforce. In our experience, these are the common issues being experienced by companies who have since benefitted from an MSP solution:  

  • Lack of talent vendor visibility, control, and oversight.
  • Rising flexible workforce costs regionally or globally. 
  • Labor law and regulatory compliance.
  • Fluctuating contingent talent needs. 

Is MSP right for you?

Hudson RPO has been a successful provider of MSP solutions for many organizations. We saved over 380k AUD in the first 6 months of partnering with Australia’s biggest gambling entertainment company. Learn more about our MSP services or speak to one of our talent experts today.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

Follow Hudson RPO on LinkedIn

What is RPO?

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What is MSP?

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Grow through a merger or acquisition with the right team

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Grow through a merger or acquisition with the right team

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Mergers and acquisitions (M&A) spark stress and often come with layoffs, mass resignations, and a handful of people left to hold down the fort… at least for a little bit. 

While you face daily operations with a reduced workforce, your talent acquisition (TA) team gets busy trying to fill vacancies. But the sudden exodus could lead to an unsustainable hiring urgency that quickly outpaces internal bandwidth. 

So, what do you do when M&A demands talent but you can’t hire quickly? We’re breaking down the potential challenges that come with M&A and how recruitment process outsourcing (RPO) can help you recover fast.

Mergers and acquisitions are around the corner

Industry consultancies and research firms are signaling a private equity (P&E) watershed (also known as “devesting”) soon. And we agree. Despite a quiet 2023, mergers and acquisitions are predicted to spike in late 2024 and early 2025. Putting a plan in place now will ensure a smooth transition if—and when—an M&A is at your door.

The M&A aftermath and your technology

These stressful transitions are notorious for layoffs and resignations. With fewer employees in-house to manage all the moving parts, you could be at risk for data breaches and lost information. Translation? Your greatest weakness could be the information technology (IT) department.

There are two major factors to consider: the cybersecurity risk and the knowledge gap.

The cybersecurity risk

No matter how employees leave—severance package or voluntary resignation—departures impact business. This is especially true in the IT department, where cybersecurity and systems require routine maintenance to ward off costly threats or issues.

When teams are strapped, even working longer hours isn’t enough to resolve every help desk ticket and patch updates needed to protect the network. It’s a perfect storm scenario for a cyber attack.

And broken workflows and a customer who needs to wait an extra business day are the least of your worries. It can also cost you millions and destroy customer trust. During M&A negotiations, there’s also a bigger risk for the buyer, which can cost jobs in the long run.

And there’s another looming issue, too…

The knowledge gap

Operations can grind to a halt when siloed knowledge walks out the door with your tech department. Even when processes are documented, being short-staffed makes productivity nearly impossible. Plus, the M&A might mean losing vital people who understand things no one else does—like someone who is an expert with your legacy IT system.

The knowledge gap impacts every customer and internal touchpoint, making running your business challenging.

Expect high turnover and layoffs

According to a study from the University of Pennsylvania, 47% of acquired employees leave within the first year after an acquisition. TA leaders and the C-suite start to wonder: 

  • How many people will I actually lose?
  • Will my most vital team members leave? 
  • Is there a way to mitigate interruptions to workflows?

While there are certainly many unknowns, one thing’s certain: you’ll lose people. But don’t worry—you have options and allies. 

The RPO solution

With key team members suddenly gone, knowledge gaps are just as obvious as empty seats—and avoiding immediate cybersecurity issues or broken systems becomes an urgent priority. 

When things get too tight on the inside, it’s time to find some slack. RPO can help. The Hudson RPO sourcing and hiring process includes: 

  1. Talent advisory. We look at turnover, brand reach, workforce engagement, and candidate drop-off so you can make fully informed decisions. 
  2. Talent sourcing. Get ideal candidates in your talent pipeline fast with our proactive reach across social channels, professional networks, and industry events. 
  3. Talent pooling. No more long waits for new hires to onboard. Our recruiters actively pre-qualify and nurture candidates, reducing time-to-hire. 
  4. Employer branding. Our team of experts helps you identify your employee value proposition (EVP) to attract the right candidates that fit the job description and your team culture. 

You can safely guide your workforce and company through uncertain times. And you don’t have to do it alone. What’s the old saying? “If you want to go fast, go alone. If you want to go far, go together.” 

You’ve got options

Whether you need a partner to support you with every facet of recruiting or just need additional help during a hiring frenzy, you’ve got options. At Hudson RPO, we tailor our offerings based on what you need.

  • Project RPO is a flexible, cost-effective option for organizations looking to hire quickly or find candidates for hard-to-fill roles. We collaborate with you to implement your project within a matter of weeks, helping you balance the need for immediate hires with your company’s long-term recruitment goals.
  • On-demand RPO is another flexible option that helps you scale your recruiting function—fast. Our rapid-response team helps you fill roles quickly when you experience a hiring surge, need more talent to support a new market, or just need to get things done faster than normal. We help you source, recruit, screen, and interview candidates.
  • Candidate sourcing is nonstop. Finding top talent, especially candidates not looking to leave their existing jobs, requires a partner who can build and maintain strong relationships with elite talent. It also requires a broad and global network that you can tap into when you’re ready to hire. At Hudson RPO, we use technology to map talent pools and find the best of the best talent out there, including passive talent.
  • Executive search. When you need to hire for the C-suite, not just any candidate will do. We partner with you to find and hire established and successful executives to fill a current role or pipeline for the future. Our team of executive search professionals know what to look for and take a holistic approach that yields high-quality C-suite candidates. 

No matter the capacity, Hudson RPO will work alongside you to fill the gaps and quickly get your tech team running with perfect-fit candidates. Contact us to learn more.

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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Professionals Weigh in on Annual Bonus Satisfaction in Hudson RPO Survey

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Tampa, Fla., May 13, 2024 – A new Hudson RPO survey finds that when it comes to annual bonuses, many professionals are less than satisfied.

Nearly half of respondents (44%) say they are not happy with the amount of their bonus, and nearly a third (31%) say there is a lack of transparency about how bonuses are calculated. 

“Bonuses are a key compensation tool to reward employees and help with retention,” said Hudson RPO CEO Jake Zabkowicz. “However, if there’s a lack of transparency on how bonuses are calculated and a perceived lack of equity and fairness, bonuses could actually be a factor in employee dissatisfaction. That’s why a thoughtful, well communicated approach to offering bonuses is critical.”

More than three-quarters of respondents (76%) say that bonuses should be negotiated as part of their compensation package, but should remain confidential, as 75% say it’s not appropriate to share the amount of their bonus with colleagues.

According to the survey, bonuses can help with retention, but only to some extent. Nearly two-thirds (64%) say that if they wanted to quit their job, they still would but they’d wait until after they get their bonus.

“Compensation, including bonuses, remains an important part of employee satisfaction, but retention efforts should be more holistic, including opportunities to learn, grow and develop,” said Zabkowicz.

While the majority of respondents say bonuses are paid out in the spring, 29% percent say they receive their bonuses at other points during the year.

About the Survey: The global survey of nearly 400 professionals took place in May 2024.

Survey results

Are you eligible for an annual bonus?

  • Yes: 92%
  • No: 8%

What timeframe is your bonus typically paid out?

  • March/April: 55%
  • End of Calendar Year: 10%
  • End of Fiscal Year: 6%
  • Other: 29%

If you wanted to quit your job, would you wait until after you receive your bonus?

  • Yes, I’d wait for my bonus then quit: 64%
  • No, I wouldn’t wait for my bonus if I really wanted to quit: 36%

Should you negotiate your bonus as part of your compensation package?

  • Yes: 76%
  • No: 24%

Is your employer transparent about the way bonuses are calculated?

  • Yes to a great extent: 21%
  • Yes to some extent: 47%
  • No: 31%

Do you think it’s appropriate to tell co-workers the amount of your bonus?

  • Yes: 25%
  • No: 75%

Are you happy with the amount of your annual bonus?

  • Yes to a great extent: 13%
  • Yes to some extent: 29%
  • No to some extent: 22%
  • Not happy at all: 22%
  • I don’t get an annual bonus: 14%

About Hudson RPO

Hudson RPO is a leading global provider of flexible and scalable recruitment solutions. We service all levels of client organizations, from entry-level to the C-suite, focusing on mid-market and enterprise-level organizations worldwide. Taking a consultative and collaborative approach, we partner with talent acquisition, HR, and procurement leaders to build diverse, high-impact teams and drive business success. Learn more at hudsonrpo.com.

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Crafting your perfect RPO partnership: Top tips for a winning RFP process

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Crafting your perfect RPO partnership: Top tips for a winning RFP process

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So, you’ve decided it’s time to engage a quality RPO partner and conduct a Request for Proposal (RFP) to find the right fit. Crafting a robust RFP is crucial to ensuring you find the right partner who can deliver value, efficiencies, and a long-term strategic alliance. To make this effort effective and thorough, here are our top tips for the RFP process in finding the ideal recruitment partner for your organization. 

Tip 1: Focus on business goals and objectives

Lead your RFP with clear articulation of business goals, objectives, and measurements rather than a laundry list of requirements. A genuine partner will seek to understand your organization’s pain points, project importance, and desired outcomes, so making sure your criteria is fit-for-purpose is crucial. Emphasizing the “why” behind the project fosters alignment and ensures proposals are anchored in shared understanding and mutual objectives. 

Tip 2: Allow adequate response time

While it’s inevitable that the RFP process will be subject to time constraints, pressuring vendors to rush their responses can lead to inaccurate estimates and overlooked details. By providing potential partners with at least 30 days to prepare comprehensive proposals, especially for complex RPO solutions, you will ultimately receive better quality responses. Since you will likely have several stakeholders evaluate proposals, you will make the most of your time by receiving well though-out proposals. 

Tip 3: Evaluate collaboration through work sessions

Initiating a working session or series of focus groups to foster authentic dialogue between your team and prospective RPO partners are fantastic ways to gauge collaboration styles and whether or not these are synonymous with your internal culture. These sessions also offer invaluable insights into a vendor’s own work style and allow for a deeper understanding of expectations. Engaging in direct interaction helps identify efficiencies, best practices, and areas for improvement that may not surface in a written response alone and may help to uncover core competencies of prospective partners. 

Tip 4: Ensure relevant experience leads the process

RFPs should not be solely driven by generic templates but rather, tailored to reflect your organization’s unique needs. Avoid generic, surface level questions, and prioritize working with a team who understand the intricacies of talent acquisition and can effectively assess vendor capabilities. Consider conducting a preliminary Request for Information (RFI) session with selected providers to gauge compatibility and alignment with your objectives before requesting full RFPs. These interactions offer valuable insights into potential partnerships and help solidify relationships based on demonstrated success.

Ultimately, crafting a well-defined RFP streamlines the selection process and paves the way for a successful and enduring partnership. It’s not merely about cost or superficial features but about aligning with innovative partners who are committed to delivering tangible business value. By focusing on these tips, you can navigate the RFP process with confidence and secure a trusted RPO and talent acquisition partner, poised to drive exceptional outcomes and organizational success.

If you are about to embark on an RFP process and looking for guidance on designing a process that delivers an exceptional partnership, speak to one of our Talent Experts today. 

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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Decoding RPO costs: Your guide to understanding financial considerations

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Decoding RPO costs: Your guide to understanding financial considerations

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Recruitment Process Outsourcing (RPO) offers an innovative approach to talent acquisition, but understanding the intricacies of its costs and financial projections can be complex. In this blog, we’ll answer some of the most frequently asked questions about RPO costs and financial considerations. 

When is an RPO solution a cost-effective option?

RPO can be a cost-effective option in several scenarios such as businesses who pay high and frequent agency fees, teams with fluctuating recruitment volumes or when your internal recruitment teams lack the subject matter expertise to operate strategically in specific recruitment areas such as recruitment technology, employer brand, candidate and hiring manager experience or specific recruitment projects – to name a few. With a quality RPO partner, you will gain access to a wealth of expert knowledge, so cost-efficiencies and value can be gained broadly.  

How do RPO pricing models work?

RPO pricing models come in three basic cost models:  

  • Management fee: Under this model, an annual management fee is charged, in 12 equal monthly instalments. The fee is linked to the agreed size and cost of the team dedicated to your business, as well as the annual number of placements. 
  • Variable placement fee: Unlike the annual management fee, variable placement fees are charged only when a successful placement is made. These fees can be structured as a flat fee or a percentage of the candidate’s salary, offering flexibility to align with the role’s level and/or source of hire. In some regions, this often looks like an open/close fee where 50% of the fee is due at the opening of the requisition, and the other 50% when the offer is accepted.
  • Hybrid fee: The Hybrid model combines elements of the two models mentioned above. RPO service fees are a mix of a fixed management fee and a variable placement fee. This hybrid approach offers a balanced and adaptable way to meet your organization’s unique needs. 

Who is responsible for managing financial and performance metrics in an RPO contract?

Maintaining leadership oversight of an RPO partnership is important to ensure you are making the most of your solution. We always recommend allocating the necessary time and resources for managing the relationship with your RPO team. Regular insights and reporting from your RPO partner will help you understand how your investment contributes to your recruitment process, identify areas for improvement, and forecast future needs. 

In the world of Recruitment Process Outsourcing (RPO), there’s no one-size-fits-all solution. Every organization is unique, and the benefits of an RPO partnership can vary depending on your specific needs and goals. If you’re eager to explore how an RPO solution could work for your organization or if you have any questions about how RPO can transform your talent acquisition process, don’t hesitate to get in touch with our team of experts. 

Hudson RPO

Content Team

The Hudson RPO Content Team is made up of experts within the Talent Acquisition industry across the Americas, EMEA and APAC regions. They provide educational and critical business insights in the form of research reports, articles, news, videos, podcasts, and more. The team ensures high-quality content that helps all readers make talent decisions with confidence.

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