Frequently Asked Questions

What Is An MSP?

An MSP is a service where a recruitment outsourcing business takes primary responsibility for managing temporary and contract workers. This includes general program management, reporting on workforce spends, implementation and change management, selection and management of suppliers, distribution of orders, and compliance with financial processes

Pretium’s key benefits include cost savings (zero cost to end hirer post implementation), reduced time to hire, improved access to talent, risk control, enhanced compliance, and more informed resourcing decisions.

How much does an MSP Cost?

MSPs typically charge a percentage of contingent workforce spend or a price per transaction fee, with options for fixed fees or performance-based pricing models​​. Pretium charges an implementation fee but no further costs to end-hirer as it is supplier funded.

What is the minimum numbers of workers in an MSP

MSPs can cover a range from 50 to 10,000 workers, typically requiring an annual spend of at least £1-3 million.
Pretium’s smallest MSP is circa 90 workers.

What are the average savings with an MSP?

Organisations can save approximately 5 – 15% on external temporary recruitment costs with an MSP​​.
Pretium typically saves an end-hirer 10% annualised.

Can I Maintain Contact with Current Suppliers?

Different MSPs may have varying approaches to managing a supplier network​​. Most forbid direct contact with suppliers. We don’t believe this works.

Pretium actively encourages end-hirers and staffing agencies to interact and strengthen their relationships within a controlled environment – Providing a ‘compliment not compete’ model.

What is a Vendor Management System (VMS)?

VMS is the technology that automates and supports the processes of an MSP, from request to invoicing​​.
Whilst Pretium has primary VMS partners, Pretium is technology agnostic and works to provide the best technology for the end-hirer.

How to gain Internal support for MSP solutions?

Gaining internal support requires setting up a multidisciplinary team, including HR, Procurement, and line management, and ensuring clear communication for a sustainable outsourcing solution.

Pretium recommends that the MSP is mandated from the very top of an organisation – adoption is key to generate the savings, efficiencies and strengthen compliance the Pretium MSP brings.

Difference between MSP models?

Common models include Master Vendor MSP, Neutral Vendor MSP, and Hybrid MSP. The choice depends on whether a single supplier is used (Master Vendor), several agencies are managed (Neutral Vendor), or a combination of both approaches is adopted (Hybrid MSP)​​.
Whilst popular in 2000s, the master vendor model is becoming less and less competitive and its weaknesses were amplified during the pandemic.

Neutral Vend v Master Vend

• Master Vendor: A sole recruitment agency is responsible for filling vacancies and releasing them to other agencies if unable to fill them.
• Neutral Vendor: This model involves forming partnerships with various recruitment agencies to find suitable candidates, without a conflict of interest with any agency partner​​.

Pretium runs a Neutral Vend MSP providing a non-competitive solution to the labour supply chain and creating a level playing for agencies to operate upon