As more companies in the U.S. recognize the benefits a contingent workforce provides, we see the popularity of this type of workforce rise. In fact, contingent workforces have become such a popular choice among employers, it’s estimated that 40% of the U.S. workforce is currently made up of contingent workers.
This increasing popularity is due to the flexibility, efficiency and cost-saving capabilities a contingent workforce can provide. With contingent workers, there’s no social security to contribute and no unemployment contributions or payroll taxes to deal with. And organizations that go this route aren’t required to cover health insurance or provide time off. Companies enjoy the flexibility and efficiency of bringing on a skilled expert for specific tasks for a designated time frame or project duration. When the project is completed and contract agreements have been met, the employer and contingent worker have no further obligations of employment.
When they're managed well, these teams can be an incredible asset to companies. If done wrong, the process of hiring and onboarding contingent workers can add a level frustration and complexity for hiring managers.
To solve this problem and get the most out of contingent workforces, many are turning to Managed Service Providers (MSPs) for help. Semiconductor companies have started to use them for recruiting, hiring, statement-of-work, management requirements, and support for contingent teams.
These companies are discovering that working with a MSP can provide benefits ranging from improved planning for budget and resources, to optimized onboarding processes and cheaper B2B integration. Let’s dig into some of these benefits a little more to see how partnering with a Managed Service Provider could help your company.
Here are 4 ways a MSP can improve your semiconductor business
Decreased Stress for Hiring Managers
MSPs manage all aspects of contingent labor. They can handle workforce management, supplier relations, recruiting, hiring, staff augmentation, and onboarding/offboarding for your contingent workforce. This takes a great load off full-time staff—particularly hiring managers.
Established MSPs have longstanding relationships with top talent. And they’ve fully optimized the hiring process so that it’s quick and easy. That means your company won’t have to spend nearly two months bringing on tough-to-fill positions like engineers. When you make the lives of your employees easier, you get a happier workforce that can focus their full attention on improving your business.
Some semiconductor companies mistakenly think working with more staffing agencies will provide a better pool of talent. But when businesses work with a lot of agencies, their internal hiring manager must juggle a massive list of contacts. This can cause good candidates to slip through the cracks as they get lost in the system or are badly managed.
Also, when staffing agencies know they’re working in conjunction with other agencies, they’re less motivated to give your company their full attention because their work could go unnoticed. Developing a relationship with an MSP that does their own staffing is the best way to make sure you’re treated as a top priority. MSPs can simplify your hiring process and ensure you receive high-quality candidates without the headache of managing multiple agencies.
Increased Organizational Efficiency
MSPs can do a lot to increase an organization’s efficiency. With IT for instance, many companies get bogged down in daily maintenance and repairs. These departments often struggle to keep their head above water, much less devote time to preventative maintenance or technological initiatives. By working with an MSP, you can outsource routine maintenance and free up your full-time IT team to pursue projects that will grow your business.
Acquiring and managing semiconductor talent requires money. When there’s a vacancy, managers must redistribute the workload. This can result in costs, delays, lost opportunities, and a drop in revenue. What’s more, hiring to fill empty seats can take weeks or months—adding further costs to the company.
MSPs can solve this problem by quickly bringing on the necessary staff to complete a project. They can also save companies thousands by pooling the resources of their clientele to provide individual companies with beneficial services that would otherwise be cost prohibitive. One survey showed that 93% of businesses reported MSPs met or exceeded cost saving expectations.
Managed Service Providers can be a great solution for many companies. And as more recognize the value of MSPs, the industry will continue to grow (it’s predicted to reach $193 billion by 2019!) If you’re interested in learning more about how these services could benefit your organization, check out our services page for more info!