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10 Things You Need to Know About Managed Staffing Services

In a modern business landscape characterized by increased competition, evolving consumer needs, and unpredictable economic climates, organizations must constantly adapt to stay relevant. Staffing, a key component of an organization’s operations, can often present significant challenges. It requires strategic and comprehensive management to ensure efficiency, productivity, and overall business continuity. Managed staffing services have emerged as a solution, providing cost-effective, personalized, and skill-focused staffing solutions. This article uncovers the critical aspects of managed staffing services and provides insight into what organizations need to know to maximize their benefits from these services.

Key Components of Managed Staffing Services

Managed staffing services provide organizations with access to qualified temporary or contract workers on an as-needed basis. Some key components that set these services apart include:

  • Vendor management: The staffing provider handles all aspects of managing contingent talent, from sourcing and screening to onboarding, training, and offboarding.
  • Reporting and analytics: Robust reporting provides insights into workforce utilization, spending, and other key metrics to inform better decision-making.
  • Technology integration: Integration with applicant tracking and VMS systems enables seamless requisition and worker management.
  • Compliance expertise: Providers ensure hiring and employment practices adhere to labor laws and regulations.
  • Scalability: Organizations can flex their contingent workforce up and down to meet changing business demands.

Additionally, leading managed services providers operate as strategic partners to their clients, providing guidance on process optimization, change management, and programs to boost engagement and productivity.

Benefits of Opting for Managed Staffing Services

Making the decision to outsource all or part of the staffing function offers organizations several compelling advantages:

Ensuring Business Continuity

With extensive networks and recruitment expertise, managed services providers can rapidly deliver qualified workers to fill open positions. This prevents workflow disruptions when permanent staff leave, or workload spikes occur.

Specialized staffing firms also maintain large pools of pre-vetted contingent talent. By tapping this readily available talent pool, organizations can continue operations smoothly despite unpredictable staffing needs.

During times of business transition or transformation, the flexible support of an external staffing partner enables organizations to focus resources on core initiatives rather than recruiting.

Access to Skilled Resources

Managed staffing services grant access to expanded skill sets that may not reside internally. Providers source professionals from across various industries and markets using far-reaching networks.

This allows organizations to launch projects requiring niche expertise without enduring lengthy recruitment cycles for scarce skill sets. It also provides an influx of fresh perspectives from talent with exposure to diverse processes and technologies.

By eliminating the need to maintain rarely used skill sets internally, managed services allow focus on nurturing the core competencies that differentiate the organization.

Cost-Effective Staffing Solutions

Studies show that contingent labor costs around 20-30% less than permanent employees when considering benefits, overhead, and HR administration. Managed services provide the means to maximize these savings.

Staffing suppliers have the specialization to promptly deliver required skill sets with maximized cost efficiency. Custom solutions like pay-as-you-go and fixed-fee models also allow organizations to gain financial predictability and cut extraneous expenses.

The mix of permanent and contingent talent can be continuously optimized via provider analytics. This leads to higher productivity and minimized labor spend over multi-year engagements.


At Velocity Procurement, we strive to be an extension of your team, helping you streamline and optimize your procurement functions, staffing needs, and more. Explore our staffing and managed services to learn more about how we can support your operations.

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What You Need to Know About Managed Staffing Services

1. Avoid a One-Size-Fits-All Approach

Seeking a personalized staffing solution tailored to your organization’s specific needs is key to success. One-size-fits-all approaches often fail to address unique requirements and challenges. Here are a few things to consider regarding your organization’s unique needs and staffing requirements:

  • Conduct a thorough evaluation of your existing talent gaps, skills shortages, and other workforce challenges.
  • Partner with a managed staffing service provider that takes the time to understand your business, culture, and objectives.
  • Look for custom recruiting, on-boarding, training, and other programs designed for your situation.

2. Know Potential Drawbacks and How to Mitigate Them

While managed staffing services offer many benefits, there are some potential drawbacks to be aware of:

  • Higher upfront costs compared to in-house hiring.
  • Less oversight and control over contingent talent.
  • More effort required for contingent workforce integration and management.

However, the right partner can help mitigate these risks through:

  • Competitive and flexible pricing models to control costs.
  • Ongoing talent monitoring, audits, and open communication channels.
  • Change management and talent engagement initiatives.

3. Achieve Cost-Effectiveness Through Transparent Pricing Structures, Performance Metrics, and KPIs

Ensuring a managed staffing program delivers ROI requires cost transparency and accountability.

  • Clearly understand fee structures, markups, and what’s included.
  • Agree to performance metrics, KPIs, and regular reviews/audits in the contract.
  • Benchmark costs against industry standards.

This enables insight into the value delivered and opportunities to refine the program for optimal efficiency.

4. Embrace Training Programs and Employee Engagement Strategies to Enhance Workforce Skillsets and Productivity

A talent skills gap is one key driver for managed staffing. Partners can fill urgent open roles, but long-term success requires robust training and engagement programs. These may include:

  • Personalized onboarding and role induction initiatives.
  • Ongoing skills development aligned with company needs.
  • Tactics to integrate contingent talent into the organizational culture.

This enhances workforce capability, innovation, and productivity over time.

5. Mitigate Risks and Ensure Compliance With Regular Audits and Assessments

While staffing partners manage many talent acquisition elements, organizations retain accountability for compliance. Ensure governance with:

  • Stringent partner selection criteria encompassing all compliance needs.
  • Clear roles and responsibilities related to compliance detailed in contracts.
  • Set schedules for audits and reviews of partner performance.

Proactive oversight is key to reducing compliance burdens internal teams otherwise bear.

6. A Strategic Partnership Can Help You Achieve Long-Term Alignment With Your Business Strategy

The most effective managed staffing arrangements evolve into strategic talent partnerships with alignment, including:

  • Consulting support for workforce planning and capacity modeling.
  • Joint roadmapping to pivot workforces as business objectives shift.
  • Leveraging data and insights to refine strategies over time.

This level of collaboration maximizes human capital flexibility and agility.

7. Know How to Integrate Digital Tools With Your People, Processes, and Other Technology

Specialized IT infrastructure and intelligent algorithms enable partners to optimize many elements. Seek those providing:

  • Seamless applicant tracking system (ATS) and video interview integrations.
  • Predictive analytics for smarter, faster hiring decisions.
  • Automation to remove administrative burdens for hiring managers.

The goal is leveraging technology to augment yet simplify human workflows.

8. Understand the Importance of Communication and Transparency

Open and ongoing dialogue creates trust and transparency for success. Your partnership should pay particular attention to:

  • Regular program reviews assessing scope, service levels, and objectives.
  • Quick escalation pathways for any issues arising.
  • User-friendly communication tools and meeting rhythms.

This facilitates early intervention for any problems before material impacts arise.

9. Know Which Performance Metrics Matter and How to Improve Effectiveness

Relevant metrics provide visibility into what’s working well and opportunities, such as:

  • Quality of hire showing retention rates and manager satisfaction.
  • Cost savings delivered compared to other hiring channels.
  • Recruiting cycle times indicating efficiency.

These insights better inform strategies to refine programs over time.

10. Look for a Past History of Success and Relevant Case Studies

Validating a provider’s experience ensures they can deliver for your organization, too:

  • Ask for case studies showing quantifiable metrics achieved.
  • Speak to references attesting to a strong track record.
  • Assess their tenure and client base as an indicator of expertise.

This due diligence reduces execution risk, so you choose a partner primed for excellence tailored exactly to your managed staffing needs.

Position Your Organization for Success With Managed Staffing Services from Velocity Procurement

Velocity Procurement has over 15 years of experience collaborating with clients to provide customized staffing and contingent workforce solutions that align top talent to your business needs. Leveraging industry-leading expertise, innovative technology, and data analytics, our talent advisors gain a deep understanding of your organizational culture and hiring priorities.

Contact us today to explore how our consultative approach to staffing and workforce planning can benefit your organization.

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