Top Trends That Will Define Staffing MSP Industry In 2021

Engaging MSPs or Managed Services Providers has become a great trend for a variety of industries to outsource their day-to-day operations. A robust MSP predominantly offers a range of services and solutions in IT segments.

One of the core areas of MSPs expertise is staffing or recruitment solutions. Staffing MSPs come to the rescue when it is about workforce management. Through their specialized application resources and infrastructure, they help enterprises to hire skilled candidates from the talent pool.

Being data-driven for assessing candidates from the marketplace, staffing MSPs work in perfect cahoots with technologies like AI, IoT, Blockchain, Automation, and others. In other words, these technologies enormously influence staffing MSPs in providing recruitment solutions to their staffing partners.

Considering the trepidations, the global pandemic brought in 2020, the staffing industry has analyzed and predicted speeding innovations and trends in staffing MSPs. it is important to know what trends will define the staffing MSP industry in 2021.

Analytics Everywhere

MSPs are a spin-off of VMS (Vendor Management System); hence they create more value together. Also, their affinity for data and analytics is beyond question. Also, an analysis of a client’s workforce management goes beyond historical information. 

Undoubtedly, the biggest challenges lie in the areas of predictive analytics and modeling, churn analytics, trend forecasting, and visualization, not to forget the constraints related to scant data and time frame.

But a real-time analytical insight will help MSPs understand talent gaps, anticipate client’s needs and concerns, and craft personalized products and services. 

Compliance and Risk Management

Digital landscape in the workplace has elevated the process of compliance especially in the premise of the gig economy. The staffing industry, particularly MSPs are required to align the recruitment process with machine-learning techniques. A good fit between MSPs and current technologies lays a path for better control mechanisms, contractual compliances, and risk mitigations. 

Also, staffing MSPs need to keep a closer look at new worker classifications and labor laws and policies. These developments will help to refine and redesign their recruitment and hiring methodologies.

Smarter Talent Productivity KPIs

Like the classic ‘school report card’, talent productivity scores can either amuse you or annoy you. The age-old formula of dividing total output by total input for arriving at a productivity value is long forgone. MSPs have realized that one size does not fit all in measuring talent productivity.

In other words, the type of output differs among various employee roles. Positions like sales, IT and technology, customer services their outputs reflected in different terms. For example, sales focus on lead generation and volume of sales while customer services are measured in terms of the number of queries handled and closed.

Also, new metrics are emerging rapidly, all thanks to new technology and database management systems. Therefore, it is too early to think of one sure-shot KPIs across all workforce segments. It needs expertise insights and data analysis to customize productivity KPIs for different kinds of the workforce.

Automation and Data Security

Automation is indeed disrupting a myriad of jobs. While it is disheartening to see our jobs getting replaced by AI, virtual reality, robotics, and a ton of other emerging technologies MSPs must focus on opportunities on the other side. 

According to a survey by, the expansion of the gig economy over full-time employment will balance the impact of automation on employment.

On the other hand, incorporating automation as a part of change management help MSPs address a range of talent management challenges like focusing on jobs that require human ingenuity, skill matching between position and candidate, and others.

With the rise of data threats and cyber insecurity bothering companies around the globe, MSPs can devise strategies on leveraging exceptional talent to address the issues of data security. Hiring talent with specialized skills in cybersecurity and protection will be much effective in combating the challenges.

Unbiased and Diversity and Inclusion Friendly Hiring using AI

Many MSPs herald AI as a prerequisite tool for recruiting diversified candidates. Without human intervention, automation can screen and hire candidates without implicit biases or prejudices. 

One study published in Harvard Business Review, AI-based job interviews are not only efficient but can also help to overcome the limitations of manual job interviews. For example, digital interviews that are based on videos or even robot interviewers can assess a prospective candidate without racial, gender, or demographic limitations.

For this reason, more and more MSPs rely on online assessment tools. These tools act as a catalyst in attracting the best talent towards the client companies in a more transparent and inclusive method.

Ethical Use of Data and Data Confidentiality

The term “Ethical data” may across as an oxymoron, all thanks to data violations by large corporations in recent times. Staffing MSPs can elevate trust from their client companies through enhancing data confidentiality and security about workforce recruitment processes. A framework on stringent legal obligations and training in data usage and maintenance can refine the data handling procedures.

Besides, MSPs can also proactively promote a corporate culture for their clients that support open and transparent communications among employees. Inclusion of best practices like these will enforce an atmosphere that is safe and secure for tech teams.

Enhanced ATS

Applicant Tracking System is an indispensable part of staffing MSPs. Also called “talent acquisition software” or simply “hiring platforms”, an ATS is a one-stop solution for all hiring needs. Apart from digitally storing a candidate’s data, ATS can single-handedly manage every piece of information about a candidate, right from his application to giving feedback on his/her interview performance.

On the client’s side, ATS can

  • Automate routine administrative tasks
  • Migrate/import/export data
  • Segment candidates’ data
  • Optimize career pages on the company’s website
  • Manage CRM
  • Measure data and analytics regarding hiring strategies

Blockchain and Workforce Solutions

The surge of blockchain in the hiring industry is creating quite a buzz in the digital ecosystem. Industry experts are calling it a ‘necessary paradox’. While cryptocurrency has proved its presence in the digital economy, crypto candidates are not far to land on an employment platform.

MSPs have understood the benefits of blockchains in the hiring industry. To posit, blockchains ensure smart contracts where there is a transfer of digital payments and assets between the parties. For example, a music industry could claim copyrights on music in the blockchain. Through smart contracts, royalties are paid for the musician when music is used for commercial Purposes.

For a staffing industry, major benefits include  transparency, security, cost and time savings, process optimization, and of course better insights and  analytics. What’s more, the transactions are permanently recorded across the network.

Advanced VMS Platforms

Enterprises that have partnered with MSPs for their staffing functions know the indispensability of VMS or Vendor Management Systems. Not only VMS automates procurement processes like business-intelligence and data analytics but also helps to implement the best practices in contract labor management by providing the best in the market professional talents. 

Staffing MSPs that are integrated with VMS deliver a 360 visibility of workforce management for all types like contingent, contract, outsourced, and consulting labor. That means the right person for the right job at the right time is hired!

Also, when it comes to implementing change management for a client firm, MSP together with VMS tools assure there is a smooth changeover of business practice, rules, and policies and a better reporting on effectiveness and efficiency of changed (new) practices.

New Talent Marketplace Platforms

MSPs know there is a bundle of untapped talents in the marketplace. MSP combined with VMS has unleashed the newest kind of talent marketplace platforms. For example, client firms are now a partner in a connected ecosystem, where they can source talented candidates directly from suppliers. 

It means clients who need a workforce can get access to the talent pool across the market segments. This practice ensures cost savings without compromising on quality as well. With the benefit of cloud technologies, MSPs can handle a significant portion of administrative functions of staffing via cloud applications. 

2021 will be a spectacular year for the staffing industry, particularly for the MSPs. It means staffing MSPs will no longer work linearly, but through collaborations, innovations, and integration, along with better analysis and insights on data. With a relentless focus on data, analytics, and technologies, staffing MSPs will embrace 2021 much better.


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