Maximizing Contingent Labor Performance, Part I
Posted by Paul Angelo on February 19, 2018
Category Advans

The goals of contingent labor procurement are to obtain the best people available at the current prevailing wage. No one wants to overpay for labor or have poor performers. 

This newsletter is the first in a three-part series on how to achieve these goals by doing the following:

  • Avoid using Staffing Managed Service Providers, i.e., outsourcing contingent labor sourcing
  • Make liberal use of subcontracting to staffing agencies
  • Utilize technology to maximize results

Advans has a white paper, “Staffing Managed Service Providers,” ( that details exactly how Staffing MSP’s drive up costs and fail to get the best candidates available, by essentially “Single Sourcing” contingent labor.

Staffing MSP’s simply eliminate candidates from the preferred vendors while filling the requirements themselves. Since the preferred vendors are prohibited from contacting employees of the customers, the customer never knows what is happening.

Remember, the Staffing MSP’s are either themselves staffing agencies or own subsidiaries that are. Contingent labor is their business. The Staffing MSP’s don’t often disclose this to the customer, because the profits from staffing far exceed any MSP fees they’d earn.

The end result is that the Staffing MSP fills the requirements itself, rather than the preferred vendors. The MSP is free to overbill the customer, since competing bids are not shown to the customer, while drawing candidates from a very small pool.

The next newsletter in the series will focus on how to avoid paying too much for contingent labor while obtaining the best candidates.

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