The world of managed services providers, recruitment outsourcing and traditional agency supplier relationships is a complex one. As organisations define their talent sourcing strategy, many large organisations are using a combination of all three partnerships, with people at various levels of the organisation involved, from hiring managers to department heads and central services such as procurement and human resources.

But how do we compare and rate these supplier programs to identify their true value?

Many organisations have set service level indicators to compare performance. But many fail to refresh these metrics as business needs and markets change. As a result, the levers to drive results are lost or are irrelevant.

Metrics like time to fill, quality of hire, compliance adherence and fulfilment rates are stock standard and while they are required, they don’t always capture the true value of a relationship.

The following factors also help to determine the strength of a supplier relationship. While more difficult to encapsulate or quantify, they create the foundation for a lengthy, mutually beneficial partnership.

1. Getting to know you

Let a new supplier get to know you. I have had relationships with clients where the HR Director or Procurement Head asks for an overview of not only our service offering but their own organisation. With this in mind, ask yourself if your supplier is investing time and energy into understanding your key leaders, their challenges, and your market and competitors? Are they creating a partnership that respects all of these stakeholders and factors?

Adding value here takes persistence, focus and the right touch, but the trust that develops over time as a result pays off for both parties. After all, a supplier needs to know its client, often better than they know themselves.

2. In sickness and in health

How well does a supplier support you when times are lean? Do they stop engaging when the work isn’t flowing in? While return on investment remains essential, be aware of your supplier’s attitude when the work dries up or difficulties arise. For example, a recent software data breach led to the need to revert to manual processes in certain areas. Did your supplier step up and provide solutions or bolster efforts to help? In any crisis, your supplier should be nimble enough to adjust their offering and continue to support you.

3. Give them what they need, not what they want

Isn’t it time suppliers stopped working solely to your metrics and went above and beyond to identify additional objectives and value they could add? For example, are your suppliers recommending the right solution or only what you want to hear? Your suppliers should not only be reactionary; they should think about your best interests and offer innovative solutions.

4. Time for an honesty session?

Is the supplier quick to give the good news and sugar coat the bad? How often do they ask you, “How can we do better?” or “Are you getting the right support from our people?”

Business reviews aren’t just opportunities to showcase good metrics. They are an opportunity to voice your concerns comfortably. Not airing your concerns means a supplier is running blind, so providing your feedback aids both parties.

5. Be a connector

Are suppliers connecting you with their other clients? Are they connecting you with solutions outside of their product offering?

There’s plenty of value to be had from widening your network.

Is it time to revisit KPIs and take a more holistic view of your supplier performance – one that encapsulates more than simple box ticking?

AUTHOR

Michael Gauci
Senior Client Services Manager, Australia, Hays Talent Solutions
Michael has over 12 years of program management experience, consulting to a vast array of organisations across multiple industries within APAC.

Having managed a variety of outsourcing models (RPO, Master Vendor, MSP), his passion and focus is centred on stakeholder engagement, people leadership, operational delivery and providing consistent, result driven programs which are strategically aligned to his client’s needs.