How to choose an MSP provider: the 12-point checklist

Use this checklist to shape your MSP evaluation and supplier conversations. If a provider can’t answer these clearly (with examples), you’re likely to inherit avoidable cost, risk, or complexity.

1) Compliance capability (built into the process)

Ask what they embed in workflow for:

• IR35 governance and working practices (where relevant)

• Right to Work / screening / audit trails

• Data handling, documentation standards, and approvals

2) Rate governance and benchmarking

Ask:

• How do you prevent rate creep?

• How do you benchmark by role family, location, scarcity and supplier?

• How often is benchmarking reviewed and refreshed?

3) Reporting you can act on (weekly MI)

Request example dashboards showing:

• Spend, rate variance, tenure, utilisation

• Supplier performance (quality, speed, compliance)

• Time-to-fill and bottlenecks

• Compliance completion rates and exceptions

4) Supplier governance that drives the right behaviour

Ask how they enforce:

• Submission rules and de-duplication

• Tiering, scorecards, and consequences

• SLA expectations for suppliers and hiring managers

5) Implementation plan and change management

Ask for a phased plan covering:

• Discovery > design > supplier onboarding > launch > optimisation

• Clear milestones in the first 30 / 60 / 90 days

• A hiring manager adoption plan (this is where programmes succeed or stall)

6) Contractor experience (because dropouts cost money)

Ask how they manage:

• Onboarding turnaround time and chase management

• Clear comms and handoffs

• Extensions, timesheets (if applicable), and contractor support

7) Technology approach (VMS, ATS and finance integration)

Ask:

• Do you work with our VMS / ATS / finance tools (or provide an alternative)?

• Who owns data quality and reporting accuracy?

• How do you keep reporting consistent across suppliers?

8) Services Procurement / Statement of Work (if relevant)

If your contingent workforce includes SoW, ask how they manage it—otherwise you may control rates but miss significant non-perm spend.

9) Operating model clarity (who does what)

Confirm responsibilities across:

• HR, Procurement and Finance

• Hiring managers

• The MSP team

• Suppliers/agencies

10) Commercial transparency

Ensure you understand:

• Management fee vs mark-up vs hybrid models

• Any pass-through costs

• Whether there are supplier rebates/incentives, and who benefits

11) Scalability and resilience

Ask how they support:

• Multiple regions / business units and differing policies

• Multi-site supplier coverage

• Peaks and troughs in demand (and what happens when volumes spike)

12) Proof, governance cadence and references

Ask for:

• Outcome metrics (e.g., rate variance reduced, compliance improved, time-to-fill impact)

• Reference conversations with similar organisations

• Example governance pack: agenda, actions, and escalation routes

Want to pressure-test your current setup (or an MSP proposal)?

Book a short MSP discovery call and we’ll help you define the right scope, KPIs and governance before you commit.