Why companies are self sourcing staffing

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Apr 30th, 2017
Why companies are self sourcing staffing

As MSPs struggle to offer more value, and SOW consulting firms take share from staffing, Contingent Staffing Managers are going back to the basics and starting to source contractors on their own to try and save money. 

As the value generated from MSPs in efficiency is baked in, the focus has now moved to the value that staffing agencies provide. If the staffing agency's value-add is just picking resumes from a job board and submittng them into the VMS, does this justify the markups they charge? Evidently Temp staffing Maangers are not convinced.

So they are leveraging their company's brand, hiring expertise and talent pools to now self source contractors on their own and route them through MSPs or other specialized payrolling agencies like MBO partners who charge a fraction (often around 5%) compared to the 20-40% markups the staffing agencies charge.

The source of candidates are through their career sites, ex- employees, ex-contractors, and new talent pools from freelancer marketplaces and sites like concontracting.com that can route interested candidates to them.

 

 

 

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