The Hybrid MSP Advantage 

Integrated Approach: By blending the best features of preferred supplier and master vendor frameworks, Acara’s hybrid MSP delivers unparalleled flexibility and value. This model allows organizations to benefit from a strategic supply base that balances efficiency and quality in workforce management. 

Comprehensive Management Services: Acara’s hybrid MSP handles every aspect of contingent workforce management, including supplier consolidation, payroll administration, onboarding and offboarding, and enterprise reporting. This comprehensive service ensures streamlined operations and reduced administrative burdens. 

Enhanced Analytics and Visibility: Utilizing advanced processes, toolkits, and online dashboards, Acara provides enhanced analytics and visibility into workforce operations. This capability allows for better decision-making and improved management of contingent labor. 

Key Benefits 

Higher Quality Talent: Acara’s expertise ensures access to top-tier candidates through specialized recruiting strategies. By retaining existing suppliers for specialized roles, the program guarantees optimal access to high-caliber talent. 

Cost Out Savings: The hybrid MSP model typically delivers significant cost savings, ranging from 9% to 12% in the first year. By consolidating suppliers and eliminating rogue spend, organizations can achieve substantial financial benefits. 

Speed to Hire: With a dedicated program manager and optional on-site recruiting lead, Acara ensures fast and efficient hiring processes. This speed is crucial for meeting fluctuating demand without compromising quality. 

Scalability and Flexibility: The hybrid MSP is designed to scale with your organization’s needs, providing flexible staffing solutions that adapt to changing market conditions. 

Improved Hiring Experience: A single point of contact simplifies communication and operations, ensuring smooth processes from onboarding to offboarding. 

Enhanced Workforce Retention: Proactive contractor care initiatives improve retention rates by offering consistent pay, benefits, and performance management coaching. 

Leveraging Preferred Supplier and Master Vendor Strengths 

Acara’s hybrid MSP uniquely blends the advantages of preferred supplier relationships with the comprehensive management of a master vendor program. As a preferred supplier, Acara develops an intimate understanding of the organization’s core needs and objectives, enabling more tailored and efficient staffing solutions. Simultaneously, by acting as a master vendor, Acara centralizes management of the entire contingent workforce, driving cost savings and streamlining processes. This approach allows organizations to benefit from the deep expertise and dedicated service of a preferred partner while also gaining the broader supplier management and cost control benefits typically associated with master vendor programs. The result is a more agile, cost-effective, and quality-focused contingent workforce management solution that adapts to the organization’s evolving needs. 

In summary, Acara’s hybrid MSP provides a robust solution for managing contingent labor efficiently while ensuring quality and cost-effectiveness. This innovative model is particularly beneficial for organizations looking to optimize their workforce strategies in an ever-evolving economic environment. 

Transform Your Contingent Workforce Management 

Acara’s Hybrid MSP combines the best of preferred supplier and master vendor models to deliver a flexible, cost-effective, and quality-focused solution. From streamlining operations to improving talent retention, our tailored approach helps businesses thrive in a dynamic economic landscape. 

The post Exploring the Benefits of Acara’s Hybrid MSP appeared first on Acara Solutions.

In a recent webinar titled “Optimizing Contingent Labor: The Benefits of a Master Vendor Program,” hosted by Derrick Ryskamp, Director of Enterprise Sales at Acara, key strategies were discussed to improve contingent labor management. 

For anyone curious about whether a Master Vendor Program is right for you, here are the key takeaways from Derrick’s conversation. 

What is a Master Vendor Program?

A Master Vendor Program (MVP), also known as a prime or preferred vendor program, simplifies managing temporary workers by offering a single point of contact. Account teams handle the entire onboarding process, ensuring a smooth experience for hiring managers and workers. Direct interaction between hiring managers and the recruiting firm accelerates hiring and provides real-time feedback, enabling quick trend identification and informed decision-making.

Traditional vs. Master Vendor Program

Derrick walked through how the traditional model of managing contingent labor compares to the Master Vendor Program:

Traditional Model:

• Multiple Vendors and Contacts: Managing various vendors can lead to fragmented communication and oversight.
• Company-Owned Delivery and Management: Internal teams manage the entire process, which can be resource-intensive.
• Varied Billing Cycles: Different billing cycles complicate financial management.
• Limited Workforce Metrics Visibility: Scattered data makes it hard to get a clear picture of workforce performance.
• No Economies-of-Scale Pricing: Lack of consolidated purchasing power leads to higher costs.
• Risk of Rogue Spend and Vendor Favoritism: Inconsistent vendor management can result in unapproved spending and biased vendor selection.

Master Vendor Program:

• Single Vendor Network: Simplifies communication and management.
• Single Point of Contact: A dedicated account team handles all aspects of the program.
• One Contract and Consolidated Invoicing: Streamlined agreements and unified billing reduce administrative burden.
• Employer of Record/Payrolling Services: The MVP manages payroll and compliance, reducing risk.
• Comprehensive Performance Reporting: Regular reports provide insights into workforce performance and trends.
• Economies-of-Scale Pricing: Consolidated purchasing power leads to significant cost savings.

A Master Vendor Program offers clear advantages over traditional models by streamlining communication, centralizing management, and providing comprehensive performance data. The MVP simplifies financial processes with unified billing and leverages economies of scale to reduce costs. Additionally, it ensures compliance and minimizes risk with centralized payroll services, offering a more efficient and cost-effective solution for managing temporary workers.

5 Key Benefits of an MVP

Derick explained the five key benefits of a Master Vendor Program:

• Scalability

One of the significant advantages of an MVP is its ability to scale with your business needs. Whether you need to increase your workforce during peak seasons or scale down during slower periods, an MVP can quickly adapt, providing the flexibility to handle varying workloads without compromising efficiency or quality.

• Cost Savings

By leveraging economies-of-scale pricing, an MVP can significantly reduce overall costs. Consolidated management and streamlined processes minimize administrative expenses, while bulk purchasing power leads to lower rates for services. This cost efficiency is beneficial for both small and large organizations looking to optimize their contingent labor budgets.

• Single Point of Contact

Simplifying communication, an MVP provides a single point of contact for all your staffing needs. This streamlined approach reduces the complexity of managing multiple vendors and contacts, ensuring that your organization has a dedicated team to address any issues or requirements swiftly and effectively.

• Consolidated Invoicing 

With an MVP, you receive one consolidated invoice instead of multiple invoices from various vendors. This unified billing cycle simplifies financial management, reduces the administrative burden, and provides a clear overview of your spending, making it easier to manage budgets and track expenses.

• Greater Transparency

Comprehensive performance reporting and real-time data insights are hallmarks of an MVP. These tools provide greater transparency into workforce metrics, allowing you to monitor performance, identify trends, and make informed decisions. This level of visibility is crucial for maintaining efficiency and achieving long-term success in managing your contingent labor.

Measuring Success in an MVP

To ensure success, Derrick recommended measuring the following key metrics:

• Response Time to Client Requests: How quickly the vendor responds to new requests and queries.
• Submission Speed for New Roles: The time taken to submit candidates for new roles.
• Candidate Start Times: The duration from candidate selection to their start date.
• Early Termination Rates: The frequency of early contract terminations.
• Reporting Frequency: Regularity and comprehensiveness of performance reports.

Available Reports in an MVP

Master Vendor Programs offer a range of reports to track various aspects of the workforce, including:

• Tenure: Duration of assignments.
• Turnover: Rate of employee turnover.
• Terminations: Reasons and frequency of terminations.
• Conversions: Number of temporary workers converted to permanent employees.
• Spend: Financial expenditure on the contingent workforce.
• Hours: Total hours worked by temporary employees.
• Placements Accepted: Number of job placements accepted by candidates.
• Assignment Completion: Completion rates of assignments.
• Ad-Hoc Reports: Custom reports tailored to specific needs.

Tips for Selecting an MVP Vendor

When selecting a vendor for a Master Vendor Program, it’s essential to assess internal resources first. Existing vendors may have untapped potential and capacity. Key considerations include:

• Performance and Capabilities: Evaluate the vendor’s track record in supporting similar roles and their capacity to handle multiple jobs simultaneously.
• Industry Experience: Ensure the vendor has relevant experience in filling the types of jobs required by your organization.

Implementing a Master Vendor Program can greatly enhance the management of contingent labor. With its ability to scale, cost-saving advantages, streamlined communication, and comprehensive reporting, an MVP provides a robust framework for effectively managing temporary workers. By selecting the right vendor and measuring key success metrics, organizations can achieve greater transparency, efficiency, and overall success in their contingent labor programs.

The post Optimizing Contingent Labor: The Benefits of a Master Vendor Program appeared first on Acara Solutions.

Overseeing these contingent initiatives can be incredibly time-consuming, forcing your internal resources to push other priorities to the backburner. A master vendor program, master vendor solution, or MVP, is a way to both enhance your contingent workforce and give back time to your direct employees. 

What is a Master Vendor Program?

A Master Vendor Program (MVP) is a contingent workforce management solution in which a single vendor serves as the primary supplier of temporary staffing for a client organization. In this setup, the master vendor is responsible for all aspects of managing contingent workers, including sourcing, recruiting, onboarding, invoicing, compliance, performance management, and offboarding. The master vendor enjoys preferred status, receiving priority in filling requisitions, and only involves other suppliers when unable to fill a position.

The MVP solution typically involves a contractual agreement between the client company and the master vendor, specifying the program’s expectations, service levels, and pricing structure. As needed, the master vendor collaborates with a network of staffing suppliers to meet the client’s temporary staffing needs. Some MVPs specialize in specific industries or job functions, while others have expertise across various sectors.

Related: E-Book: Master Vendor Programs: The Key to Your Contingent Workforce’s Success

According to Law Insider, organizations can hire a master vendor partner to source temporary workers from their own labor pools while managing the entire contingent labor supply chain. Rather than maintaining individual relationships and adhering to specific contract terms with each supplier, organizations will only need to keep in contact with their master vendor provider. 

Related content from Aleron Group partner Broadleaf Results: Infographic: Managed Service Program (MSP) or Master Vendor Program (MVP) 

Here are some of the key benefits that a master vendor program (MVP) can offer your company. 

1 – Fully scalable programs 

Acara’s master vendor programs are customized to align with your organization’s specific workforce objectives, and the size of our team can be scaled to support ebbs and flows in your hiring needs. If you’re faced with a dramatic uptick in staffing requisitions, we’ll bring on more recruiters to aid this spike in demand. A good MVP provider is well equipped to support any talent challenges that come your way. We can also fulfill all client-specific skill testing or onboarding procedures, including drug and background screenings. 

Related: Creating a Master Vendor Solution for a High-Tech Semiconductor Client 

2 – Greater cost savings 

Contingent labor is almost always more cost-effective than hiring a workforce chock-full of salaried employees. In a master vendor solution, your organization will gain access to a comprehensive view of all contingent labor spend. If we identify suppliers using inaccurate rates, we’ll put an end to this costly rogue spend to generate significant savings for your organization. Centralizing all contingent labor through a master vendor program will also drive more aggressive pricing due to a high volume of spend, resulting in immediate savings to your bottom line. 

Related: Optimizing Contingent Labor: The Benefits of a Master Vendor Program

3 – A single point of contact 

A master vendor program will manage all supplier interactions on your behalf. Acara provides our clients with a single point of contact for all master vendor engagements to streamline and simplify operations throughout all stages of the recruitment process. You’ll no longer have to worry about tracking down a supplier or two—we’ll take those problems off your hands. 

Related: Master Vendor Solution: Streamlines Contingent Labor Needs and Enhances Diversity Recruiting Strategy 

4 – One consolidated invoice 

Rather than receiving dozens of invoices from suppliers across the country, a master vendor solution provider will consolidate all invoices into one. Your organization won’t be responsible for paying each supplier individually, preserving valuable time for your internal resources. 

5 – A commitment to reporting and analytics 

Because all program metrics run through the master vendor provider, data can be more easily tracked, and performance more effectively measured. Greater transparency around all aspects of the contingent labor program will enable your organization to operate more efficiently. 

Summary 

A master vendor program can be the ultimate solution to enhance the quality and overall performance of your contingent labor program. The main objectives of an MVP are to centralize all spend and management of your temporary staff, maximize cost savings, and give your talent acquisition team more time to focus on other crucial job duties. 

With a single point of contact and dedicated program team, Acara can streamline your contingent workforce through a customized solution that meets your unique needs. 

Acara’s master vendor solution presents the perfect answer to address the pain points associated with the management and oversight of your temporary workforce. Have a question about our master vendor solution? Contact us today, or take our MVP Quick Assessment to find out if an MVP is right for you.

Related: Managed Service Program, Master Vendor Program, or Both? Finding the Right Workforce Solution for Your Business 

This blog was written by Director of Enterprise Sales Derrick Ryskamp. 

The post The Benefits to a Master Vendor Solution appeared first on Acara Solutions.

Now more than ever, businesses have access to a wide range of solutions to create new efficiencies in the talent acquisition process—but with so many options and providers available, how can you tell which one is right for you?

Two industry experts—Derrick Ryskamp, Director of Enterprise Sales for Acara Solutions, and Jason Krumwiede, Executive Vice President of Broadleaf Results—recently hosted a webinar to shed more light on the types of workforce solutions and important things for employers to consider when deciding which approach will best fit their needs.

Industry Trends

Shifts in contingent labor, especially since the COVID pandemic, have been a catalyst for many organizations to rethink their approach to workforce management. Buyer priorities have shifted dramatically, and new solutions are needed to address some of the big changes in available talent.

More organizations are moving away from vendor-neutral and non-mandated programs and instead are opting for programs with fewer suppliers and greater accountability to generate better results. Additionally, while hiring processes have typically been siloed to human resources, we are now seeing entire organizations come together to develop talent acquisition strategies that align with overarching business goals. All this is leading to important conversations about where a company’s workforce strategy should go moving forward.

MSP vs. MVP

The webinar detailed two approaches to workforce management in particular:

• A Managed Service Program (MSP) aims to consolidate and optimize workforce management across multiple suppliers.
• A Master Vendor Program (MVP) focuses on contingent labor through a single vendor.

These both differ from a traditional staffing model, where the business owns all talent delivery, oversight, and management internally and partners with multiple suppliers as needed to meet hiring needs.

Related from Aleron Group partner Broadleaf Results: Infographic: Managed Service Program (MSP) or Master Vendor Program (MVP)

The model that’s best for your organization will depend on a variety of factors, including your company’s specific workforce needs, challenges, and preferences, as well as the complexity of your contingent workforce requirements.

Key program attributes of an MSP include:

• Consolidated, single Master Service Agreement and supplier contracts
• Generally, no onsite agency staff to support contractor care and manager engagement
• Markup/bill rate established by MSP provider
• Provider manages vendor relationships and recruitment activity
• Annual spend ranges from $15 to over $200 million
• Can support worldwide contingent employees within a single program
• Supplier-funded fee model
• Leverages a Vendor Management System (VMS) to streamline all transactions

Related: Master Vendor Solution for a Startup Manufacturing Client

Meanwhile, key programs attributes of an MVP include:

• Consolidated, single Master Service Agreement and invoicing
• Single point of contact and onsite program staff
• Sub-suppliers fill gaps as needed
• Standardized and efficient processes with consistent onboarding and compliance metrics
• Yearly contractor spend ranges from $3 to $100 million
• Complete performance reporting and analytics; no need for a VMS
• Economies-of-scale pricing create to create significant cost savings
• No management fee

Related: MSP or MVP?: That is the Question

Combining Two Solutions for Optimal Results

Some organizations also opt to blend the two models. By utilizing an MVP inside an MSP, you’ll have access to a dedicated, onsite program and recruitment teams with a single point of contact, leading to localized subject matter experts, improved fill ratios, and decreased time-to-fill.

Under this model, the MVP owns recruitment at defined locations. The MSP can also utilize sub-vendors when hiring ramps up or for roles that the MVP is unable to support. Unlike a traditional contingent workforce model within an MSP, where multiple agencies are competing to fill the same positions in identical markets, this blended solution also allows for greater efficiencies, more onsite support, and more opportunities to save costs.

Related: Case Study: Winning Top-Talent for a Non-Profit with a Lifesaving Mission

Benefits of a Centralized Contingent Labor Program

Beyond the cost savings outlined above, a centralized contingent labor program—whether achieved through an MSP or MVP—will also give you access to more data around your hiring efforts, what’s working, and where improvement is needed. You’ll be able to see key metrics like employee tenure, turnover, terminations, conversions, billing, placements accepted, and placements completed all in one place.

Providers also often have access to tools and technologies that can give you a better look at compensation data and regional employment data—all of which can help you design a more competitive talent acquisition strategy.

Related: Evaluating and Implementing a Second-Generation MSP

Find Out Which Workforce Program is Right for You

Now that you know some of the key differences between MSP, MVP, and a traditional contingent workforce solution, the next step is determining which model—or models—is right for you. Contact our team at Acara today for a free consultation.

You can also access a recording of the full webinar here.

Related: Quick Assessment: Is an MVP Right for Your Organization?

The post Managed Service Program, Master Vendor Program, or Both? Finding the Right Workforce Solution for Your Business appeared first on Acara Solutions.

What is an MVP solution?

A Master Vendor Program is a contingent workforce management solution where a single vendor acts as the primary supplier of temporary staffing to a client organization. In this solution, the master vendor is responsible for coordinating and managing the supply of contingent workers—from sourcing and recruiting to onboarding, invoicing, compliance, performance management, and offboarding. The master vendor (or primary vendor) has preferred status and is given priority for sourcing and filling requisitions and will only bring in other suppliers when they can’t fill the position.

The MVP solution typically involves a contractual relationship between the client company and the master vendor, which outlines the program’s expectations, service levels, and pricing structure. The master vendor then works with a network of staffing suppliers to fulfill your temporary staffing needs. Some MVPs specialize in specific industries or job functions, while others have experience working across various sectors.

Benefits of using an MVP solution

MVPs offer several benefits to organizations that rely on contingent workers, including:

• MVP owns recruitment with an 85-95% fill ratio
• Enhanced responsiveness, quality submittals vs. quantity, and quickest to submit
• Dedicated program and recruitment team with a single point of contact
• Standardized and efficient processes with consistent onboarding and compliance metrics
• Complete performance reporting with the Vendor Management System (VMS) tool
• Economies-of-scale pricing to create significant cost savings

Related: The Benefits to a Master Vendor Solution

Who uses an MVP?

MVPs are typically used by large organizations that have a significant contingent workforce or temporary staffing needs. These organizations may include corporations, government agencies, healthcare facilities, and educational institutions. This solution suits organizations with many suppliers who want to simplify their management and reduce costs. This solution can often be utilized in conjunction with an MSP program. In addition, MVPs can be particularly useful for organizations with a demand for similarly skilled workers and those operating in multiple locations.

What is an MSP?

A Managed Services Program (MSP) is a type of business processing outsourcing (BPO) that helps organizations manage their contingent workforce or temporary workers. Contingent workers can include contractors, freelancers, temporary employees, and other types of non-permanent staff. An MSP is a model where a managed services program provider oversees the entire contingent workforce program, including multiple suppliers. The MSP acts as the primary point of contact between your organization and the suppliers, managing every aspect of the contingent workforce program, from sourcing and recruiting to contract management, invoicing, and reporting. This includes facilitating requisitions, interview coordination, oversight of hiring and onboarding, sending invoices, payment processing, and reporting and analytics. The MSP will effectively align the right combination of suppliers—with proven performance in job categories specific to your organization—to provide an assortment of high-quality candidates that compete for each of your contingent hiring needs.

The MSP solution typically involves a contractual relationship between the client company and the MSP provider, which outlines the responsibilities and obligations of both parties. While the specific terms and conditions may vary based on the agreement, commonly addressed aspects include the scope of services, service level agreements (SLAs) and key performance indicators (KPIs), and governance and dispute resolution.

Related: What is MSP? Managed Service Programs: Explained

Benefits of using a managed services program solution

MSPs offer several benefits to organizations that rely on contingent workers, including:

• Multiple vetted diverse and uniquely skilled suppliers—with proven performance in job categories specific to your organization—all on a level playing field
• A highly agile model that can be seamlessly scaled up or down to adjust to market demands
• A program built to manage all labor categories across all locations while ensuring the highest candidate quality and most competitive rates
• A suite of technology provides advanced workforce analytics and reporting and viability into spend
• One contract and consolidated invoicing on one billing cycle
• Greater visibility into costs across 16 categories resulting in 8-20% savings
• Supplier-funded, ensuring no additional cost to your organization
• Reduced contingent labor lifecycles and time-to-fill rates

Related: How MSPs Drive More Holistic Total Talent Acquisition Solutions

Who uses an MSP?

Medium to large-sized companies across various industries utilize MSP solutions. If your company oversees a sizable or diversified contingent workforce population, you can consider outsourcing the management of these workers to an MSP provider. An MSP will improve recruiting process efficiency and assist in building a more robust applicant pipeline for your business, bringing in a steady stream of top talent.

Which is suitable for your company?

There is no one-size-fits-all answer to whether an MVP, MSP, or both is the right choice for your organization. A workforce solutions provider can assess your organization’s specific needs, objectives, and available resources to gain insights and guidance tailored to your situation and assist in making an informed decision. Regardless of your talent acquisition challenges, Aleron can work with your team to craft workforce solutions that deliver exceptional results.

Contact us to learn more about MVP and MSP. You can also complete our MVP Quick Assessment to see if an MVP is right for your business.

This blog was written by Derrick Ryskamp.

The post MVP or MSP?: That is the Question appeared first on Acara Solutions.