While there isn't much certainty in the world in which we live today, one thing's for sure — the pandemic has completely transformed the way we manage talent acquisition.
The job landscape in the first quarter of 2021 looks strikingly different compared to the same quarter last year. According to the Bureau of Labor Statistics, 5.7 million more people were unemployed in February 2021 compared to February 2020. Out of these, 4.1 million people have been unemployed for more than 27 weeks, 3 million more than the same month the previous year. And this trend of high unemployment rates continues today.
One of the main reasons driving the high unemployment rate is simple — business owners can't afford to pay their permanent staff. With ever-fluctuating restrictions and infection rates, owners can't predict their income accurately. After months of digging into their savings to keep their businesses afloat, there's just no cash left over to pay their employees.
However, not all industries have been affected equally. While some sectors, such as travel and hospitality, have been devastated by the pandemic, other industries, such as IT services, have barely been affected at all.
Why Are Managed Staffing Providers Thriving Right Now?
A Managed Services Provider (MSP) can take care of a business' talent acquisition needs. Acting as an expert internal recruitment team, the MSP has access to a pool of highly-talented and experienced professionals they can employ for their clients as they need more talent.
Whether you require one senior graphic designer or a complete HR department, for example, an MSP can provide you with the right individual or team for the job. Outsourcing your recruitment to an MSP will ensure that your organization is getting the best talent.
Low Financial Risk
A good MSP will provide businesses with the specialist tools they need to survive zero certainties in business operations. By providing skilled workers through a flexible model for a cost-effective price, business owners can continue operating with minimal financial risk.
Another way MSPs help organizations curb expenditures is by giving them the power to change their workforce size whenever necessary. When pandemic restrictions were regularly being reviewed and changed, having the ability to adapt the number of people employed to suit any situation was incredibly valuable. MSPs allow companies to be scalable without losing any business momentum.
Instead of hiring a permanent employee and organizing long-term contracts, payroll and benefits, business owners could turn to MSPs and have their ever-changing recruitment needs met for an affordable and fixed-price structure.
By employing staff through an MSP, business leaders can choose whether they work onsite or remotely. When people were asked to work from home whenever possible, MSPs seamlessly created a way to make the entire recruitment and employment processes completely contact-free.
One of the biggest problems businesses have experienced with remote work was collaboration. MSPs are already highly competent with the type of cloud software needed to optimize telework. And they can also help their clients hire employees who are familiar with this type of technology, which has vastly improved productivity and efficiency for many businesses.
MSPs Help Businesses Survive
Essentially, the reason MSPs have been experiencing growth in the face of the pandemic is because they have helped other businesses stay afloat during one of the most difficult financial times of our generation.
They provide affordable access to a flexible contingent workforce made up of talented individuals who can be trusted to complete any delegated task to a high standard.
5 Ways an MSP Will Serve Your Business for the Future
The valuable benefits MSPs provide were truly brought to life due to the COVID-19 outbreak, but their reach extends far beyond the aftereffects of the virus. Here are five ways they will help your business thrive, not only in the present, but for years to come when COVID-19 is a mere memory.
1. MSPs are more affordable than traditional staffing models.
When hiring workers through an MSP, you don't need to dedicate an additional budget or resources to onboarding, training, benefits, offboarding, etc. The provider takes care of all this in exchange for a reasonable pricing structure.
2. They provide instant access to experts.
Recruiting a genuine specialist with the skills and experience they claim to have can be difficult, especially if you're not competent in the area in which you're hiring. A good MSP guarantees that you'll get the best candidate with the necessary expertise and knowledge to get any job done.
3. You benefit from sophisticated technology without the price tag.
The MSP that you partner with will typically use your internal software if you ask them to; however, it's often in your best interest to let them use their own tools. MSPs have access to their own advanced technology, which is often much more sophisticated than other businesses' software.
4. Security is always a priority.
Many small businesses were targets of cyberattacks during the early stages of the pandemic. MSPs are very knowledgeable when it comes to protecting data from hackers. By outsourcing your talent acquisition process, you can be sure the important information your MSP handles will never fall into the wrong hands.
5. Increased flexibility boosts profits.
MSPs allow you to benefit from a highly flexible workforce. If your business has seasonal peaks, you can scale your workforce up and down accordingly to optimize profits. Equally, if you have the opportunity to work on ad hoc projects, you can use an MSP to hire additional staff to cater to the surplus work, thus increasing your organization's income.
MSPs Are the Future
MSPs have introduced many business owners to a world of staffing benefits they didn't even know existed over the past few years. As the pandemic begins to settle down and life returns to some sense of normality, MSPs will continue to provide businesses with the skilled, agile workforce they need for a reasonable price.
In the near future, technology will continuously advance, and the way we work with it will develop, too. Over time, the traditional staffing model will become less common, while MSPs will flourish. Take advantage of this modern, sophisticated means of recruitment today or risk being left behind tomorrow.
About the Author: David Miller is a freelance journalist and has a degree in journalism from UCLA. David spends most of his time ghost writing content.