Sometimes the most important question isn’t “Why would you?” but “Why wouldn’t you?”
Just this morning, as is my daily custom, I went to my banking app to view any payments that had cleared and to see if any checks had been deposited. I did this from the comfort and privacy of my hotel room. Yes, I could have waited until the end of the month and looked at the snail-mailed, hard copy of my account statement to check on my balances and do any needed reconciliation, but that seems rather archaic. I also can take a picture of any checks and deposit them electronically without having to drive to the closest bank branch where the biggest benefit is the free suckers. Just makes sense, right?
If asked why I prefer this modern method to the outdated manual process, my response would be a quick “Why wouldn’t you?” The same is true of the way companies manage contingent workers. You could use email, spreadsheets and intermittent, hard-to-produce reports but why would you? Especially when there is technology available that can make all of this so much easier and make you and your staffing program so much more efficient.
But that would mean transitioning to an MSP (Master Service Provider) to co-source the management of staffing vendors and processes. It would also mean implementing a VMS (Vendor Management Software/System). Sounds like a hassle so why would I do that? Well, maybe the real question is why wouldn’t I?
I was recently in The Big Apple, and there I was reminded of the sharp contrast between an old way of doing something as opposed to a new way. The conference I was attending was relatively close – too close to take the subway – so I had 3 options; walk, taxi or Uber/Lyft. One day it was raining so walking was out. I was then left with two options – the old way (taxi) or the new way (Uber). I, of course, chose the latter. Why? I didn’t want to stand in the rain and hail a cab, I didn’t want to scramble for the address of where I was going, I didn’t want to have to pay the driver at the end of the ride and I didn’t want to pay extra for all this inconvenience.
So, I unlocked my smartphone, pressed the Uber icon, plugged in the name of the conference center and watched as my ride grew closer and closer to picking me up. I even knew how much this was going to cost BEFORE I got in the vehicle and I didn’t have to hassle with the payment and tip while trying to jump out of the car with my backpack in tow. Again, why wouldn’t I choose this method of getting from point A to point B in frenetic Manhattan?
Another example might bring clarity. I recently had a flat tire on busy I-65 just north of downtown Nashville. Cars were whizzing by me at breakneck speed. I could have reached for my phone book and started calling tow truck companies but, instead, I scrolled to my AAA app. Via GPS, it identified my location, dispatched someone to change the tire and did so in a matter of minutes. I didn’t even have to negotiate the price or worry with payment. My roadside savior quickly did the deed and then waved goodbye as I soon was on my merry way. In this situation, I would use AAA every time because, really, why wouldn’t I?
Or why wouldn’t I buy from Amazon or order lunch from Grubhub if I can’t get out of the office?
If you have personally used any of these, you have used an MSP and you have used a VMS. Simply said, an MSP is a company that manages vendors and the associated processes using a technology tool (VMS) that efficiently bridges the gap between consumer and provider. You pay the MSP and they, in turn, pay the vendors for you.
This is no different than the world of staffing and your contingent labor program, except you generally get to pick, use and keep the staffing company of your choice. So, if you have a decent amount of staffing, need more than one vendor and especially if you use in multiple locations or a variety of skill sets an MSP/VMS probably would make sense. In other words, why wouldn’t you?
Unless you are a Luddite desperately clutching to your rotary phone.
Unfortunately for those unwilling to adapt, in today’s competitive business landscape you either change or die. The world of talent acquisition isn’t going to pause so that you can cling to archaic, yet comfortable, ways of doing things. If you haven’t realized, companies that prosper are understanding that winning, if not outright survival, is a matter of “out with the old and in with the new.” After all, why wouldn’t you?