How RPO and MSP are Transforming Workforce Strategy

Companies across the UK are grappling with talent shortages that seem to worsen by the quarter, whilst simultaneously managing project-based demands that require rapid scaling up and down. According to Statista, UK job vacancies reached a record high of 718,000 in July 2025, highlighting the severity of current talent challenges. Add to this the complexities of managing a global workforce e.g. permanent, temporary and remote staff, and its clear traditional hiring approaches need rethinking.

The challenge isn't just finding people; it's finding the right people quickly whilst maintaining quality standards. According to Deloitte's 2023 Global Human Capital Trends study, companies estimate 30% of their procurement spend goes towards contingent workers. Businesses need agility to respond to market changes, but they also can't afford to compromise on the calibre of talent they bring in. This balancing act has pushed many organisations to look beyond conventional staffing solutions towards more sophisticated workforce strategies.

The Changing Face of Recruitment

We're witnessing a fundamental shift from transactional hiring to strategic workforce planning. Gone are the days when HR could simply post a job advert and wait for applications to roll in. Today's successful companies are thinking months, even years ahead, building talent pipelines before they actually need them.

The rise of hybrid workforce models reflects this new reality. Companies are blending permanent staff with contingent workers - contractors, freelancers, consultants - to create flexible teams that can adapt to changing demands. A construction firm might have a core team of permanent engineers but bring in specialist contractors for specific projects. A tech company might maintain permanent developers whilst using freelance designers for particular campaigns.

Traditional recruitment models, designed for a more predictable world of permanent hires, simply weren't built for this complexity. They lack the sophistication to manage multiple talent types, the technology to provide real-time workforce analytics, or the strategic insight to align hiring decisions with long-term business goals.

RPO: Elevating the Quality of Permanent Hires

Recruitment Process Outsourcing (RPO) represents far more than just handing your hiring over to someone else. It's about embedding external expertise and cutting-edge technology directly into your HR function. Think of it as gaining access to a recruitment team that's been specifically designed for your industry's challenges.

Hudson RPO research shows that RPO can reduce time-to-hire by over 40% and deliver cost savings of more than 50% in year one. It strengthens your employer brand through consistent, professional candidate experiences. Perhaps most importantly, it brings data-driven decision making to hiring processes that have traditionally relied on gut feelings.

According to RPOA research, 67% of companies utilizing RPO services saw revenue increases, compared to 33% of companies that did not utilize RPO. Consider how engineering firms use RPO to build long-term capability. These companies need highly specialised talent - structural engineers, project managers, safety specialists - often for projects that span years. An RPO partner doesn't just find candidates; they develop deep understanding of the technical requirements, build relationships with relevant talent communities, and create recruitment strategies that align with project timelines and business growth plans.

MSP: Gaining Control Over the Contingent Workforce

Managing contractors, temps, and freelancers is more complex than many companies realise. You're dealing with multiple suppliers, varying contract terms, compliance requirements that differ by worker type, and costs that can quickly spiral out of control without proper oversight.

According to the US Bureau of Labor Statistics, 5.9 million people hold contingent jobs, making this a significant workforce management challenge. Managed Service Providers (MSP) solve what we might call the "vendor overload" problem. Instead of managing relationships with dozens of staffing agencies and freelance platforms, you work with one MSP that coordinates everything. They handle vendor selection, contract negotiations, compliance monitoring, and performance tracking.

MSPs such as TRS Workforce Solutions provide superior supplier oversight so that operations can be streamlined, and the supplier headcount can be reduced. The benefits include centralised vendor management that eliminates duplicate processes, transparent reporting that gives you real visibility into contingent workforce costs and performance, and workforce scalability that lets you ramp up or down quickly without administrative headaches.

Picture a major infrastructure project requiring civil engineers, environmental consultants, health and safety specialists, and project coordinators - all from different suppliers. Without MSP coordination, you'd have separate contracts, different billing cycles, varying insurance requirements, and multiple points of contact. An MSP streamlines all of this under one unified management structure.

Why Businesses are Blending Both

Here's where it gets interesting: many organisations are discovering they need both permanent and contingent talent strategies working in harmony. Your core team provides stability and institutional knowledge, whilst your contingent workforce provides flexibility and specialist expertise.

RPO and MSP together can deliver a unified talent ecosystem. Your RPO partner focuses on building your permanent capability whilst your MSP manages the flexible talent layer. The magic happens when these two approaches are properly integrated - sharing data, aligning strategies, and working towards the same business objectives.

Technology integration often plays a crucial role in successful implementations. Modern Applicant Tracking Systems (ATS) and Vendor Management Systems (VMS) can work together, providing a single dashboard view of your entire workforce - permanent and contingent.

What's Next in Workforce Outsourcing

The future's already arriving in some organisations. AI and predictive analytics are revolutionising candidate selection, helping identify not just who can do the job, but who's likely to succeed long-term in your specific environment.

There's growing focus on Diversity, Equity, and Inclusion (DEI) in outsourced recruitment. Companies are demanding that their RPO and MSP partners actively contribute to DEI goals, not just pay lip service to them.

We're also seeing a shift toward outcome-based contracts. Every company has unique needs and a good MSP will provide a customizable pricing structure based on those needs. Instead of paying for recruitment processes, companies are paying for results - successful hires who stay, perform, and contribute to business objectives.

Future-Proofing Your Workforce Strategy

RPO and MSP aren't just cost-cutting measures; they're future-proofing tools that help businesses stay competitive in an increasingly complex talent landscape. The question isn't whether you need more sophisticated workforce strategies - it's whether you'll develop them proactively or be forced to adopt them reactively when your current approach hits its limits.

Perhaps it's time to rethink recruitment not as a cost centre, but as a strategic driver of competitive advantage. After all, in a world where talent is the ultimate differentiator, your workforce strategy might just be your secret weapon.

Discover how TRS Workforce Solutions can help build a recruitment model tailored to your long-term goals.