An ALS is an agreement between two parties describing the service provided, which documents service level targets (on which service is measured) and defines the responsibilities of the service provider (HR) and the client (employee and manager). How would you recommend the service provider`s follow-up and evaluation? Partners are moving towards profit-sharing agreements to ensure that both parties focus on the same outcome. These rules go beyond the application of sanctions for non-compliance with minimum service levels, which are offset by incentives for exceptional services. Instead, they allow the supplier to evaluate invoices for achieving stretching goals and making additional value available. Outsourcing HR services has the potential to offer a variety of benefits, including cost reduction, improved service levels and a competitive advantage, but the decision to transfer responsibility for the function to third parties is far from easy. The ALS must contain some kind of escape clause. But it is important that it focuses on ensuring the relationship between supplier and customer rather than dealing with what happens when things go wrong, as is the case. The opt-out clause should focus on substantial treaty violations and provide examples of what would constitute such an offence. Even if you have experience negotiating in a wide range of HR contexts, it is the tenacious business diversity that prevails here, and a calculated approach to who plays what role in the negotiations will pay off. Ask for examples and case studies on how the proposed model will work.
You will also have to conduct a lot of internal negotiations – if the board is not behind it, it may fail. In the search for cost reductions, we can forget that service quality management is a work in progress and requires a framework and procedures. Many organizations also tend to forget that outsourcing is a “partnership,” so it is important to keep in mind that responsibility for the working relationship rests with both parties. You need to be very clear about what you expect from the provider – providing a full letter should teach you to avoid the risk of a standardized and consistent service. It is also important to have a solid assessment of the strengths and weaknesses of your own department, as it is absolutely not practical to try to monitor and evaluate the provision of a provider`s service if you have not first performed a detailed audit of your own performance. If you enter into a long-term agreement with a supplier, if you do it wrong and you are locked into an unsatisfactory relationship, the consequences are bad. As a result, there is a lot of discussion about negotiation. There is a chance that you are part of a negotiating team made up of a large number of experts – otherwise, the only key person you still need on board is a legal negotiator or a lawyer. In short, ALS is designed to improve the quality of service for your employees. It`s the CASE Management SLA HR feature that lets you do it.