HR services procurement – how can you get the best out of suppliers?

May 22, 2009

With the current economic situation there is a need for organisations to save on costs wherever possible. This is extending into most HR departments, with budgets for everything from recruitment to training, employment law advice to salaries being squeezed at every angle. It is more important than ever to choose suppliers that provide the highest possible value for money for the service they are providing, and to reduce wastage or eliminate it altogether.

So how can HR professionals ensure they are choosing the right suppliers for the required services? The amount of business telemarketing lists I have managed to get myself onto doesn’t help my situation – with constant telephone calls from suppliers of HR software, benefits and management training, and an appalling amount of wasted paper arriving each day in leaflets and flyers for various things. Trawling through the possibilities to arrive at the ideal option can be difficult, however the following few tips should help you to navigate the minefield:

  1. Have a clear idea of your aims and goals in using the supplier. There’s no use expecting the supplier to tell you what you want from them – you will end up confused and no further on. Make a list of the essentials, desirables and elements that are not required.
  2. Get a clear idea of your budget, with how much room you have for manoeuvre.
  3. Select suppliers as you would employees – with selection criteria, interview questions and presentation briefs. The use of case studies may also provide an insight into how the supplier would deal with your requirements, and whether this fits with the organisational values.
  4. Check up on any required qualifications or experience. Does the employment law advice come from qualified lawyers or customer service advisors that have had some training but basically work off a script?
  5. Be open and honest about your organisation – warts and all. The supplier won’t be able to give you a good enough service unless they understand the constraints they will face.

The most important thing you are looking for in a supplier is value for money, and a return on investment. This doesn’t always mean the cheapest option but if you have no evidence to show your board why you need to spend more on the more expensive option, you’re unlikely to get the backing for it. Measurable selection criteria and facts about success is the way to achieve the buy in you will need.

Things to consider:
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Posted by hrgirl | Filed Under HR Practice 

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