7 Ways Managed Service Providers Can Attract/Retain Small Business Staffing Firms

For the past decade, the staffing business has shifted quite dramatically to the utilization of managed service providers, better known as MSPs. We all know and understand why, from a client’s viewpoint, they are a great tool. Should you be a staffing firm owned by a small business owner, is it really great for your business? I have been part of many successful programs (I have even won business to be an MSP), but I have also seen many faults of certain programs that could be easily remedied, if only the participating small business firms had a greater voice. Here are some suggestions to make MSP programs friendlier and fairer to small businesses:

1. Give attractive opportunities, not just the work that is high risks/low margin. All too often, the only opportunities that seem to be available are the types of work that MSPs won’t cover themselves (i.e. drivers, light industrial, etc.).
2. If you claim your process is vendor neutral, then be sure to truly be vendor neutral. If you want your vendors to work hard in the program and trust that they are being fairly treated, there can be no favorites. Rewards those who perform best, but the playing field has to be level.
3. Make requirements realistic. Too often, insurance requirements and various other clauses make participating in programs a major obstacle. Many, who small business firms are competing against, are billion dollar companies. Every attempt should be made to take these issues into consideration.
4. Encourage diversity! Not just in hiring practices, but in opportunities given to diverse-owned small businesses firms.
5. Give visibility. They understand that you do not want every vendor nagging the client for more opportunities. What they would like is an opportunity to know who we are working for and to have open communication to better service the client and to build relationships.
6. Help us grow! If they have done an excellent job for your program and you have other programs, allow us to participate there, as well. They will go above and beyond to prove that your faith in us warranted.
7. Pay on time! It is no secret that cash flow is king. Paying us 30-45 days later than the agreed upon payment terms hurts many of the min more ways that you will ever know.

PREMIUM CONTENT: Are temporary workers turning to online staffing services for employment?