BLR MSP, MVP webinar recap   blog

Managed Service Program, Master Vendor Program, or Both? Finding the Right Workforce Solution for Your Business

The talent landscape is evolving, and your organization’s approach to sourcing, hiring, onboarding, and managing your workforce is likely changing with it.

Now more than ever, businesses have access to a wide range of solutions to create new efficiencies in the talent acquisition process—but with so many options and providers available, how can you tell which one is right for you?

Two industry experts—Jason Krumwiede, Executive Vice President of Broadleaf Results, and Derrick Ryskamp, Director of Enterprise Sales for Acara Solutions—recently hosted a webinar to shed more light on the types of workforce solutions and important things for employers to consider when deciding which approach will best fit their needs.

Industry Trends

Shifts in contingent labor, especially since the COVID pandemic, have been a catalyst for many organizations to rethink their approach to workforce management. Buyer priorities have shifted dramatically, and new solutions are needed to address some of the big changes in available talent.

More organizations are moving away from vendor-neutral and non-mandated programs and instead are opting for programs with fewer suppliers and greater accountability to generate better results. Additionally, while hiring processes have typically been siloed to human resources, we are now seeing entire organizations come together to develop talent acquisition strategies that align with overarching business goals. All this is leading to important conversations about where a company’s workforce strategy should go moving forward.


The webinar detailed two approaches to workforce management in particular:

  • A Managed Service Program (MSP) aims to consolidate and optimize workforce management across multiple suppliers.
  • A Master Vendor Program (MVP) focuses on contingent labor through a single vendor.

These both differ from a traditional staffing model, where the business owns all talent delivery, oversight, and management internally and partners with multiple suppliers as needed to meet hiring needs.

Related: Infographic: Managed Service Program (MSP) or Master Vendor Program (MVP)

The model that’s best for your organization will depend on a variety of factors, including your company’s specific workforce needs, challenges, and preferences, as well as the complexity of your contingent workforce requirements.

Key program attributes of an MSP include:

  • Consolidated, single Master Service Agreement and supplier contracts
  • Generally, no onsite agency staff to support contractor care and manager engagement
  • Markup/bill rate established by MSP provider
  • Provider manages vendor relationships and recruitment activity
  • Annual spend ranges from $15 to over $200 million
  • Can support worldwide contingent employees within a single program
  • Supplier-funded fee model
  • Leverages a Vendor Management System (VMS) to streamline all transactions

Meanwhile, key programs attributes of an MVP include:

  • Consolidated, single Master Service Agreement and invoicing
  • Single point of contact and onsite program staff
  • Sub-suppliers fill gaps as needed
  • Standardized and efficient processes with consistent onboarding and compliance metrics
  • Yearly contractor spend ranges from $3 to $100 million
  • Complete performance reporting and analytics; no need for a VMS
  • Economies-of-scale pricing create to create significant cost savings
  • No management fee

Related: MSP or MVP?: That is the Question

Combining Two Solutions for Optimal Results

Some organizations also opt to blend the two models. By utilizing an MVP inside an MSP, you’ll have access to a dedicated, onsite program and recruitment teams with a single point of contact, leading to localized subject matter experts, improved fill ratios, and decreased time-to-fill.

Under this model, the MVP owns recruitment at defined locations. The MSP can also utilize sub-vendors when hiring ramps up or for roles that the MVP is unable to support. Unlike a traditional contingent workforce model within an MSP, where multiple agencies are competing to fill the same positions in identical markets, this blended solution also allows for greater efficiencies, more onsite support, and more opportunities to save costs.

Related: The Advantages of Integrating an MVP Into an MSP

Benefits of a Centralized Contingent Labor Program

Beyond the cost savings outlined above, a centralized contingent labor program—whether achieved through an MSP or MVP—will also give you access to more data around your hiring efforts, what’s working, and where improvement is needed. You’ll be able to see key metrics like employee tenure, turnover, terminations, conversions, billing, placements accepted, and placements completed all in one place.

Providers also often have access to tools and technologies that can give you a better look at compensation data and regional employment data—all of which can help you design a more competitive talent acquisition strategy.

Related: Evaluating and Implementing a Second-Generation MSP

Find Out Which Workforce Program is Right for You

Now that you know some of the key differences between MSP, MVP, and a traditional contingent workforce solution, the next step is determining which model—or models—is right for you. Contact 

You can also access a recording of the full webinar here.