Achieving Cost Savings in Facilities Management via an MSP

In the competitive sector of facilities management (FM) in the UK, managing costs effectively is crucial for both project success and operational efficiency. Whether you're overseeing a large-scale project or handling the complexities of facilities management, achieving cost savings is a top priority. A Managed Service Provider (MSP) specialising in recruitment can be a strategic partner in this endeavour. By optimising processes, managing agency supply chains, and leveraging advanced strategies, an MSP can deliver significant savings.

Understanding MSPs in the Context of FM

An MSP in recruitment offers specialised services to manage the hiring process and vendor relationships, which can be transformative for FM companies. Let’s explore how an MSP can drive cost savings through enhanced recruitment strategies and operational efficiencies.

1. Managing Agency Supply Chains

One of the key areas where MSPs provide cost savings is through the management of agency supply chains. By consolidating agency partnerships, MSPs can negotiate better terms and reduce the administrative burden associated with managing numerous suppliers.

In FM, MSPs apply the same principles to manage service providers effectively. This leads to better contract terms and cost savings by reducing the number of intermediaries and streamlining service delivery.

2. Standardising Recruitment Contracts

Standardising recruitment contracts is another crucial strategy for achieving cost savings. MSPs work to standardise contracts across all recruitment agencies, which helps in controlling costs and ensuring consistency in service levels. This approach reduces the complexities of managing different terms and conditions and provides better leverage during negotiations.

In FM, this means, consistent terms for service personnel and maintenance staff. Standardised contracts simplify administration and ensure fair pricing, ultimately leading to cost reductions.

3. Rate Card Management

Effective rate card management is essential for controlling recruitment costs. MSPs utilise rate cards to set standardised pricing for recruitment services. By negotiating and managing these rate cards, MSPs ensure that rates are competitive and transparent, eliminating unexpected costs and providing better budget control.

In FM, it controls the costs associated with maintenance and operational staff, ensuring that you only pay for what is necessary.

4. Negotiating Agency Fees

Negotiating agency fees is a critical area where MSPs can make a significant impact. MSPs leverage their market knowledge and industry relationships to negotiate lower fees with recruitment agencies. This results in direct cost savings and ensures that you receive value for your investment.

In FM, it lowers the costs of staffing services and operational support, enhancing overall budget efficiency.

5. Direct Supply

Direct supply involves sourcing candidates directly rather than through third-party agencies. MSPs can implement direct supply models to reduce dependency on recruitment agencies and associated fees. This approach can lead to substantial savings by cutting out the middleman and reducing recruitment costs.

In FM, it facilitates the direct hiring of maintenance and operational staff, reducing costs and improving workforce quality.

6. Transferring Existing Agency Workers (Under TUPE)

The Transfer of Undertakings (Protection of Employment) Regulations (TUPE) allow for the transfer of existing agency workers to a cheaper payrolling charge rate. MSPs can manage this process effectively, ensuring that workers are transitioned seamlessly while achieving cost savings through reduced payrolling charges.

In FM, it involves transitioning maintenance and support staff to more efficient payrolling solutions, optimising labour costs while maintaining service standards.

Conclusion

Achieving cost savings in FM requires a strategic approach and leveraging the expertise of a Managed Service Provider (MSP) can be transformative. By managing agency supply chains, standardising recruitment contracts, implementing rate card management, negotiating agency fees, utilising direct supply models, and transferring existing agency workers to more cost-effective payrolling solutions, MSPs help optimise FM budgets.

In the competitive and dynamic field of facilities management, effective cost management is essential for success. Embracing the advantages of an MSP not only helps achieve substantial cost savings but also positions your organisation for long-term efficiency and operational excellence.

Partnering with an MSP provides you with a strategic ally committed to enhancing your recruitment and FM operations, ultimately leading to improved financial performance and organisational success.

Savings Stats:

• Agency Supply Chain Management: Companies utilising MSPs for agency supply chain management report up to 20% reduction in recruitment costs by consolidating agency relationships and streamlining processes.
• Standardised Contracts: Standardising recruitment contracts through MSPs can lead to savings by reducing administrative complexities and ensuring consistent pricing.
• Rate Card Management: Effective rate card management by MSPs can result in up to 30% reduction in recruitment costs by providing transparent and competitive pricing.
• Agency Fee Negotiation: Negotiating agency fees with MSPs can achieve savings of 10-20%, reducing overall recruitment expenses and improving cost efficiency.
• Direct Supply and TUPE: Implementing direct supply models and transferring agency workers under TUPE can lead to 10-25% savings in payrolling and recruitment costs, optimising labour expenditures.

Get in touch with us today to find out how we're driving cost savings for the UKs largest facilities management company.