How MSPs can help face economic uncertainty

By Mark Coyle CEO APAC, Impellam Group and APSCo Director

A well-managed MSP can help grow recruitment businesses They’re designed to streamline processes and help place more candidates in the right roles, faster. MSPs help clients effectively manage their workforce and can increase recruitment suppliers’ access to vacancies, with some agencies able to build whole divisions around filling MSP roles.

With the most aggressive tightening of monetary policy in decades and economic uncertainty looming, Managed Service Providers (MSPs) can help bolster your business.

So, what can MSPs do to help stare down the barrel of an economic downturn?

Firstly, we know cash is king Not only in tough times, but always. With interest rates rising at the fastest pace in years, now isn’t the time to be out of pocket. Most MSPs offer early payment facilities to recruitment suppliers. These can improve cash flow, reduce interest repayments, and free up cash to fund growth and expansion projects.

Early payment programs work by allowing candidates to be paid straight away ensuring they have the best experience MSPs then pay recruitment suppliers in an agreed timeframe, usually a few days, regardless of whether the client has paid their invoice. This means the margin for placements hits agency accounts faster.

Secondly, keep on top of compliance. MSPs make it easy to mitigate risk and remain compliant by shining a light on critical compliance areas Whether through Vendor Management System (VMS) technology, briefing sessions, support services or audits, MSPs help stay on top of everything from pay rates and preemployment checks to labour licences and casual conversion obligations. The processes and requirements built into MSPs act as a guide to help recruiters and clients minimise business risk.

Mark Coyle CEO APAC, Impellam Group APSCo Director

Finally, MSPs help reduce costs while expanding access to vacancies Through MSPs, jobs land on recruitment desks without the need to invest heavily in business development and marketing initiatives With a steady stream of jobs coming through, recruiters can devote time and resources to finding and placing top quality candidates. Strong fill rates and engagement with MSPs typically create opportunities to expand supply to other job categories and customers, which means more jobs, more placements, and more margin

MSPs are here to support recruitment supply partners to achieve mutual growth. In the face of uncertainty, there is also opportunity to strengthen partnerships and explore collaborative solutions to build better businesses.