Plugging staffing gaps in the public sector often means turning to a managed service provider (MSP), which will supply agency staff. Not all MSPs work in the same way, however, with the main differences being between a master vendor and a neutral vendor. One of the main issues with this system is the organisation not necessarily knowing the difference between the two.

With a total of £19.7 billion being handed over to MSPs each year, according to Staffing Industry Analysts (SIA) Global MSP Landscape report 2019, here’s why you should ensure yours falls under the category of being a true neutral vendor.

Separation with the supply chain

While a master vendor makes use of a single supplier, a neutral vendor maintains a level of separation from the supply chain. That means the staff are sourced from a selection of agencies by the MSP without particular bias for one over another.

All candidates are therefore selected based on the same criteria set out by you as the client. This results in the best talent for a role filling the position, as opposed to the MSP choosing an employee from its affiliated supplier.

A larger talent pool

If your MSP is returning to the same supplier again and again, you’re not being exposed to the best potential for talent. A neutral vendor will have a wider reach and ensure the standard of skills remains high even when there is a high demand to fill positions.

This is particularly important in industries that require specialist skill sets or specific roles are facing a shortage of qualified professionals. It’s possible for a public sector organisation to miss out on talent simply because the MSP has not spread its net far enough to find it.

Standardisation and clarity

When dealing with a neutral vendor the process will be standardised and clearly laid out to the client. This makes compliance less of a worry and enables the route to market to be scaled based on the needs of the client at any one time.

It’s important to understand how hiring decisions are made and that any niche role requirements are taken into consideration. When deciding on an MSP to fit into your contingent workforce programme, consider independence as a strong tick in the pro column.

Selecting a vendor model

Taking all of these elements into consideration makes it clear why, according to SIA, 32 per cent of total annual contingent labour expenditure via third-party MSPs comes from neutral vendors. Perhaps it would be higher if more end hirers had a clearer view of the benefits.

As well as neutral and master vendors, there’s also a hybrid model that combines aspects of each type of MSP into its processes. Some public sector employers opt for this as it enables them to use a neutral vendor to hire in certain areas and facilitate the master way of working in others.

To learn more on the vendor models or to discuss the solution +Us have to support your organisation, please don’t hesitate to get in touch.