How Staffing Agencies Can Break into MSP Programs

Many clients (especially larger ones) engage their contingent workforce through Managed Service Providers (“MSPs”). MSPs act as the main point of contact for the client and are responsible for sourcing contingent workers through staffing agencies (called “vendors” or “suppliers”). Clients use MSPs to streamline invoicing, ensure they work with the best staffing suppliers, and control costs. If you’re a staffing agency wanting to work with clients that use Managed Service Providers, you will need to know how to get into MSP contingent workforce programs. Whether it’s your first or your next, it’s important to be incorporated within these types of programs, as the MSP model offers substantial opportunities for staffing agencies. However, breaking into this space and succeeding requires a structured approach with strategic planning, relationship building, a keen understanding of how MSPs operate, and luck. This article outlines how staffing agencies can enter and thrive in MSP programs.

Where Should You Start?

When breaking into MSP programs, it is generally more effective to start by contacting MSPs rather than clients directly. Clients will likely defer to their MSP, particularly if the MSP is the type that owns the supplier relationship. However, some program sponsors on the client side may become their own opening and refer a supplier over to their MSP.

Some MSP programs have a dedicated supply base manager, whereas others share this role. Each MSP will have its list of partnered suppliers. By establishing a relationship with an MSP, your agency can gain access to a broader client base and streamline securing placements.

Who Should You Be Contacting, and What Are Some Example Titles?

Targeting the right contacts within MSPs can help cut to the chase of getting access. Here are some key roles to focus on:

• Vendor or Supplier Manager - Responsible for managing relationships with staffing vendors.
• Program Manager - Oversees the MSP program and ensures it runs smoothly. In smaller programs, they may own the supplier management.
• Talent Acquisition Specialist - Focuses on acquiring talent through day-to-day operations; while they don’t have decision-making power on which staffing firms are in the program, they may point you to the right person.

Reaching out to individuals in these roles can help you understand their needs and how your agency can address them. However, it is important to recognize that each MSP and program is structured differently and will require some research before making contact.

What Is the Process Like Going in Totally Cold?

In all honesty, it can be difficult! Come prepared with expectations of no response, rejection, and being put on a list for further follow-up down the road. When approaching MSPs without prior connections, here are some methods to provide a more structured process:

Research – Identify MSPs and clients that align with your agency’s strengths and target industries. If you know an MSP supports a particular client, research that client and read about them in the news and how they are changing and evolving. As possible, deduce pain points and how you may be able to solve them.

• Initial Contact - Reach out through email, phone, or LinkedIn, introducing your agency and expressing interest in becoming a vendor. Personalize your message to demonstrate knowledge of the MSP’s needs. Keep your message succinct about what pain points you will solve.
• Timing and Luck - Many MSPs do not need more suppliers, and some are reducing the number of suppliers they have. However, there are times when talent needs are changing, or they are looking to expand their supplier network. This timing is not always predictable and may come down to pure chance of when you reach out to them and what their needs are.
• Follow-Up - Regularly follow up to demonstrate your commitment and persistence. Try not to be needy but work to form a genuine connection as much as possible.

You’ve Got Your Foot in the Door, Now What?

Once you’ve made initial contact and spoken with the correct person on the MSP team, it is unlikely they will say yes during the first meeting. The courting process can take some time from initial contact to signing a contract with them. Here are some things to work through as you begin the courting process with the MSP, educating them on who you are and building a relationship with them.

• Identifying Requirements - Determine where your agency's services best match the MSP’s current needs. For example, an MSP might have a full capacity for IT services but a significant need for healthcare talent.
• Providing Relevant Services - Even if there isn’t an immediate need to fill their openings, positioning your agency as a future resource can be beneficial. Maintain ongoing communication to stay on the MSP’s radar for future opportunities.

How to Stand Out

• Unique Responses - Have confident, specific responses to differentiate your agency. Avoid generic answers that could apply to any vendor.
• Get to the Point - Be succinct and specific about what you do and what makes your agency different. Focus on outcomes and live examples of what you’ve done.

What Metrics MSPs Look For

• Understand What Matters - Common metrics used to measure supplier performance are time efficiency, quality of service, and cost-effectiveness. Learn what your client prioritizes and what they expect.
• Meeting Expectations - Clearly explain how your agency balances these aspects and meets the needs of each. Share insights into your processes and strategies that you follow to build trust.
• Talent Satisfaction - Help the MSP Understand why talent wants to work with your agency and be able to articulate your strategies for maintaining their satisfaction.

Partnership with MSPs

• Responsive Communication and Active Participation – Be quick and thoughtful in your responses to inquiries and engage actively in calls and feedback sessions to demonstrate your commitment.
• Learn About Top Performers – If you make it into the program, you’ll aim to be on the MSP’s preferred supplier list, which is made up of the program’s top performers. During the courting process, learn what the top performers in the MSP are doing and why they are currently the best.

Conclusion

Breaking into MSP programs requires strategic planning, relationship building, and a deep understanding of MSP operations. Start by targeting key MSP roles, conducting thorough research, and preparing a structured outreach. Once you’ve made contact, align with the MSP's needs, differentiate with clear communication, and focus on time, quality, and cost. Build a reputation for reliability and responsiveness, and actively engage with the MSP as much as possible to learn what they want in a top-performing supplier. Persistence, adaptability, and commitment to excellence will help staffing agencies catch the eye of MSP programs.

A staffing-focused Employer of Record (EOR) like Ascen can help you navigate the Managed Service Provider landscape by aiding with MSP requirements such as insurance and compliance, timesheets, billing, and by streamlining your back-office operations so you can focus on becoming a top supplier.

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