Many downstream companies use a combination of Managed Service Providers (MSPs) and specialist staffing providers separately to cover recruitment needs.

In this article we find out how companies operating in the downstream sector can benefit from using one supplier who can offer both an MSP program and specialist downstream staffing solutions.

What is an MSP?

An MSP usually manages all contingent recruitment, including the on-going management of the workforce.

MSP models are usually tailored to the client’s needs, but programs will typically include the management of all contingent vacancies, managing third-party suppliers, payroll, legal compliance, workforce planning, and off-boarding.

What benefits can an MSP bring?

  • Cost savings by ensuring recruitment is as economical as possible. Typical savings of 10% on the total ownership of contractor workforces
  • Improve time-to-hire with efficiencies in the recruitment process, reducing by up to 50%
  • Achieve visibility and control of contingent worker spend
  • Save resources managing one provider
  • Ensure compliance in areas such as taxation and insurance cover
  • Mitigate over spend through pay rate standardization, migration, and ensuring the pay is in line with market rates

In what scenarios are MSPs usually implemented?

There is an increasing trend to use MSPs by operators and EPCs in the oil and gas industry, due to the need to streamline and simplify the hiring process, and reduce in-house HR resources. 70 – 90% of contract roles will be hired via MSP in most oil and gas businesses that have an MSP program.

An MSP program is ideal if a company…

  • Is depend upon a lot of contract and temporary workers
  • Has a disparate supplier base
  • Needs to ensure they are complying with complex employment regulations
  • Needs a standardized process for contingent staffing

What can NES Global Talent offer downstream companies?

Staffing agencies are usually used for highly skilled roles and MSPs for more craft roles to reduce administrative burden. However, NES Global Talent is able to combine both expert knowledge in downstream recruitment and the ability to manage contingent workforce processes efficiently under one operation.

We have proven experience in the downstream industry whilst also offering an established and highly-effective MSP service that various high-profile oil and gas companies are already utilising. Using the same provider to administer an MSP program and assist with specialist staffing requirements makes it easier for the client to manage the supplier relationship.

We offer clients who use our MSP program:

  • A dedicated downstream recruitment team, in-house or on-site
  • Corporate governance direction and compliance
  • Pre-assignment services including employee immigration, relocation, orientation, and compensation
  • Budget and assignment cost projections
  • Vendor management
  • Tax planning and compliance, and payroll compliance, in relation to local laws
  • Employee repatriation

Downstream Case Study

NES Global Talent formulated a contingent staffing program, including a bespoke recruitment solution and a compliant transition plan, for a major refinery based on the West Coast of the United States.

Whilst servicing the client’s contingent staffing needs by using our in-depth knowledge of the downstream candidate market in the area, NES also ensured compliance with regulatory laws and upheld the highest level of risk mitigation with relation to co-employment issues. An on-site Safety Manager and Time Keeping Administrator were utilised to ensure safety and mitigate against overspend, and a dedicated on-site Recruitment Manager sourced candidates and coordinated recruitment needs with the client’s Hiring Managers in real-time.

The scope of the agreement also involved managing vendors to increase efficiencies and reduce the client’s administrative burden, and as a value added service, a full salary benchmark report was also completed for the client to ensure cost savings were made as appropriate.

As a result, 100% contractual compliance was achieved and over 10% savings were made across recruitment and mark-up reduction.

If you are interested in benefiting from using a provider who possesses the necessary expertise to hire for specialised and senior downstream positions, while also offering a cost-effective and efficient MSP program service, then please contact us to find out more.

The spread of COVID-19 is affecting all of us. But as a global staffing company, NES would like to reassure our customers that we are fully operational across all our locations and are working closely with clients to ensure essential projects stay on track at this difficult time. For regular updates, please see our COVID-19 Support Hub.