Many companies are turning to independent contractors, freelancers, and outside consultants to meet their goals, creating a flexible workforce that mixes full-time employees with independent talent.
By 2024, there were about 72.4 million independent workers in the U.S., according to MBO’s State of Independence report. This number is growing faster than traditional employment, showing just how important independent professionals have become in the modern workplace.
This shift toward independent talent aligns with broader business priorities. A PwC Pulse Survey found that 77% of executives consider hiring and retaining talent as their most critical growth driver. Independent professionals support these goals by providing specialized skills, expert knowledge, and adaptability.
That said, managing independent contractors can be challenging, especially when a comprehensive solution is needed to address every aspect of the working relationship. Two of the most popular methods that companies use today are Managed Service Providers (MSPs) and Vendor Management Systems (VMSs).
A Managed Service Provider (MSP) is a third-party company that helps U.S. businesses find and manage independent contractors. They handle tasks like recruiting, hiring, and overseeing these workers, so you don't have to manage all the administrative work yourself. MSPs are especially useful when managing large groups of contractors, but they might not be the best choice if you only need a few individual contributors.
While MSPs can simplify operations, managing your independent workforce in-house offers several clear advantages:
Learn More: The Advantages of an Internally Managed Contingent Workforce Program
For companies aiming to manage their independent workforce internally, a Vendor Management System (VMS) can be an effective solution. A VMS is a software platform that helps companies manage their temporary or contract workers. It brings all your data together, automates processes, and tracks important details like spending, candidate information, and payroll. Companies can use a VMS on their own or through an MSP to make managing contingent workers easier.
Key benefits of using a VMS include:
Explore: MBO’s Program Maturity Index is a self-assessment tool that helps you quickly benchmark where your contingent workforce program stands today—and where to focus to keep it evolving for long-term success.
Partnering with a workforce solutions provider like MBO can save time, reduce costs, and help you find and manage the right talent more efficiently. This ensures independent professionals are matched with the right projects, spending and compliance stay under control, and your company remains agile in a competitive market.
For more details about MBO’s contingent workforce solutions, including our Employer of Record (EOR) services and Agent of Record (AOR) services, get in touch with our team today.
If you're looking for additional support attracting top talent to your organization, MBO Partners offers a wealth of tools and resources to help. We cover a wide range of topics, including workforce compliance, AI technology, and more.