Workforce management has got a transformed face in the last few years! In the last decade, every aspect of talent management has changed, from the engagement rate of people and compliance requirements to the expectations of talent pools. And this revolutionary change has been gladly adopted by the workforce solutions. Today, all kinds of employers, both Fortune 500 companies and start-ups, want to tap into the power of external support to meet their staffing needs. And they get this help either through a Managed Service Provider or MSP or a Recruitment Process Outsourcing or RPO solution.
Today, this blog offers a compelling description of the difference between MSP staffing or MSP recruiting and RPO Staffing. Want to explore?
Read on
Before we dive into the differences, let's check out the basics first.
What is MSP?
MSP recruitment offers an end-to-end recruitment proposition but focuses entirely on contingent workers. Here, contingent workers mean temporaries, contractors, consultants, freelancers, Statement of Works (SoW) and other non-permanent staff who work for a specific company. An MSP partner helps companies entirely manage their contingent workforce with a constant focus on cost management, process efficiencies, and ensuring that the company complies with its treatment of workers while staying authentic to the brand's values. Workers might get supplied by a network of different agencies, but an MSP comes into the picture, which plays a significant role and acts as the supply chain manager.
What is RPO?
RPO is when an organization chooses to outsource all or different parts of its recruitment process to an outsourced provider. An RPO provider can take control of a wide array of areas like candidate sourcing, candidate screening, candidate onboarding, and so on. Also, an RPO service provider offers a complete end-to-end solution.
What are the Differences between MSP and RPO?
Difference in Value Propositions
MSP – MSP primarily offers the value of low cost.
RPO – RPO provider has the advantage of faster sourcing of quality talents through their expertise in the recruitment process.
So, MSPs are more procurement centric, while Human Resources (HR) is the primary responsibility of RPO providers.
The difference at Requirements Level
MSP – MSP programs deal with more accountability for end-to-end vendor management for a massive volume of users.
RPO – RPO programs provide a wide variety of talent acquisition services in an end-to-end manner comprising the demands of scalability, cost, quality, compliance, and so on.
The difference in Pricing Models
MSP – The pricing rules of the MSP model are driven by market pricing. This is applied according to the percentage of the workers' pay rates.
RPO – RPO providers, on the other hand, charge an organization based on the delivery costs for the skill sets considered.
The Bottom Line
Ready to take MSP or RPO services?
Please ensure you understand their working approach and specifications precisely before that. And the above differences exactly express that!
Author Bio
Hiren Patel, the VP (US Staffing) of Dash Technologies Inc, is one of the best brains in the Staffing industry and is also one of the core founding members of Rekrooting, the eminent flagship program of Dash Technologies Inc. With an extensive working experience of more than a decade in the US staffing industry, Mr Hiren Patel is an expert in workforce management across different sectors. He is also an ardent speaker and writer who loves to express his thoughts, ideas, and knowledge. In his leisure, Hiren loves to explore the latest insights of the US staffing industry and keep himself always empowered. He is available at: hiren@rekrooting.com.
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