Almost Paradise? Measurable Results from Better HR Vendor Management

Within HR organizations, we have several topics that all would love to pursue and master, but few have accomplished expertly and consistently with measurable results.  

Today I’d like to dig a little into the effective (and efficient) management of HR Vendors.  Often one of the last items for HR to tackle, there are many benefits to the workforce, HR and broader enterprise budgets from running a tighter ship.  Best practice would suggest that gaining visibility to, and better management of organizational spend on vendors delivery of HR services will deliver a better and more consistent employee experience as well as reduce overall vendor spend through rationalized vendor lists, preferred vendor pricing, economies of scale and adherence to contract terms.

However, during HR service delivery design workshops, we often find that HR organizations manage vendor relationships, performance and contract terms in a very informal, decentralized and reactive way.  In large part, this is often because there is no process owner assigned to look broadly across the HR organization and develop a comprehensive strategy, goals and standard governance approach, or “playbook” if you will, for managing HR vendors during the active contract period.

How well are you managing HR vendors?  Are they placed on “auto-maintain”, do you expect them to make decisions that are in the best interest of your organization, or are they held tightly to the SLAs you’ve contracted them to perform?  How many of the services that you’ve contracted HR vendors to perform are also still being done in the ‘shadows’ of your HR team or business units?  Are you getting the most out of your HR vendors when it comes to service quality, pricing and employee experience?