MAXIMIZING HRO SERVICE EFFECTIVENESS STRUCTURING THE SLA Adam D. Vereshack McCarthy Tétrault LLP Barristers & Solicitors Patent & Trade-mark Agents

Transcription

1 MAXIMIZING HRO SERVICE EFFECTIVENESS STRUCTURING THE SLA Adam D. Vereshack Barristers & Solicitors Patent & Trade-mark Agents

2 Setting Specific Service Levels Determining a Baseline Creating Strategic Service Levels Clarifying Risk Management Strategies Overview 2

3 Setting Specific Service Levels List Services to be Outsourced Identify those Services for which Service Levels are Required Determine Required Severity Levels Example: Critical Minor No impact Assign a Severity Level for Applicable Services 3

4 List Services to be Outsourced Employee Services (Intranet) Manage Personal Information Maintain Personal Skills Inventory and match against Job Opportunities E-Learning Benefit Programs Information and Enrolment 4

5 List Services to be Outsourced Employment Services (Intranet) External Job Postings Candidate Résumé Database Candidate Screening Systems 5

6 Management Services (Intranet) List Services to Outsourced HR Administrative Services (Workforce Data Management) Performance Management Payroll Preparation» Time Recording» Attendance» Leave Requests Benefits Administration 6

7 List Services to Outsourced Employee Assistance Centre Services Inquiries and Concerns Examples: Benefits Compensation Early Retirement Transfers Pensions 7

8 Recruiting and Hiring List Services to Outsourced Identify Requirements Identify Resource Pool (Sources) Interviewing including Behavioral Interviews Skills and Aptitude Testing Interview with Hiring Manager for Final Decision 8

9 Determine a Baseline (Identify Resources for Services Requiring Service Levels) Business Function Employee Services Employment Services Management Services Employee Assistance Centre Recruiting and Hiring Nature of Resource Used Computer Systems Computer Systems Computer Systems Systems and Skilled Staff Experience & Expertise 9

10 Business Functions - Assign Severity Levels Employee Services (Intranet) Managing Personal Information Skills Inventory and Job Opportunities E-Learning Benefit Program Information and Enrolment Employment Services (Internet) External Job Postings Candidate Résumé Database Candidate Screening Systems Severity Level Minor Critical Severity Level 10

11 Employee and Employment Services - Availability Service Levels Service Elements Severity Level Incentive Service Level Minimum Service Level Availability Upper Limit Lower Limit Floor Service Level Availability Employee Services Managing Personal Information 99.9% 97.85% 97.35% 95% Skills Inventory & Job Opportunities 99.9% 97.85% 97.35% 95% E-Learning Minor N/A 90% 85% N/A Benefit Program Information and Enrolment Critical 99.9% 99.85% 99.35% 98% Employment Services External Job Postings 99.9% 97.85% 97.35% 95% Candidate Résumé Database 99.9% 97.85% 97.35% 95% Candidate Screening Systems Minor N/A 90% 85% N/A 11

12 Employee and Employment Services - Availability Service Levels Service Level Credits in any One Month Minimum Service Level Availability Upper Limit results in Service Level Credit of 7% of MMC Minimum Service Level Availability Lower Limit results in Service Level Credit of 12% of MMC Floor Service Level Availability results in Service Level Credit of 25% of MMC Service Level Credits in any Two of Three Consecutive Months Minimum Service Level Availability Upper Limit results in Service Level Credit of 14% of MMC Minimum Service Level Availability Lower Limit results in Service Level Credit of 24% of MMC Floor Service Level Availability results in right to terminate Incentive Service Level If achieved over agreed upon time frame results in partial claw back of previously paid Service Level Credits 12

13 Employee and Employment Services - Response Time (End to End) Service Levels Service Elements Employee Services Severity Level Incentive Service Level Minimum Service Level Availability Upper Limit Lower Limit Managing Personal Information 4 seconds 5 seconds 7 seconds Skills Inventory & Job Opportunities 4 seconds 5 seconds 7 seconds E-Learning Minor N/A N/A N/A Benefit Program Information and Enrolment Critical 1 second 1.5 seconds 2.5 seconds Employment Services External Job Postings 4 seconds 5 seconds 7 seconds Candidate Résumé Database 4 seconds 5 seconds 7 seconds Candidate Screening Systems Minor N/A 90% 85% 13

14 Employee and Employment Services - Response Time (End to End) Service Levels Service Level Credits in any One Month Minimum Service Level Availability Upper Limit results in Service Level Credit of 7% of MMC Minimum Service Level Availability Lower Limit results in Service Level Credit of 12% of MMC Service Level Credits in any Two of Three Consecutive Months Minimum Service Level Availability Upper Limit results in Service Level Credit of 14% of MMC Minimum Service Level Availability Lower Limit results in Service Level Credit of 24% of MMC Incentive Service Level If achieved over agreed upon time frame results in partial claw back of previously paid Service Level Credits 14

15 Business Function - Employee Assistance Centre ( EAC EAC ) and Employee Assistance Representative ( EAR ) Four Service Level Metrics: EAC Index» Measures employee satisfaction with the EAC (Survey) EAR Index» Measures agent performance from employee s perspective (Survey) Accessibility» Measures how many calls are answered relative to calls attempted Mail Processing» Measures processing time for mail Determine Severity Levels for each Function Determine Service Level Credits 15

16 Business Function - EAC & EAR Indices (Surveys) Normally, survey methodology is developed by survey consultants Survey respondents broken down into meaningful segments Example of EAC Segments: Exempt Employees Inquiries Only Exempt Employees Concerns Only Non-Exempt Employees Inquiries Only Non-Exempt Employees Concerns Only 16

17 Business Functions - Accessibility Accessibility will be used to measure phone responsiveness The formula for accessibility shall be calculated using data collected from the Automatic Call Distribution ( ACD ) System. The formula is: Calls Answered Calls Abandoned + Calls Answered + Busies Where: Calls Answered Calls Abandoned Busies = EAR answered voice call = Calls received by ACD and the employee terminates call before EAR answers = The number of calls that receive a busy signal during operating hours Accessibility will be measured during the EAC s operating hours Accessibility will be reported as one number across all Segments 17

18 Business Functions - Mail Processing Assumes the EAC receives mail on a daily basis Need to know average daily volume of mail Measures time from when mail is opened, sorted, image scanned and then routed to the appropriate processor For purposes of metric definitions, each mail piece is time stamped with the date of arrival The mail will be time stamped with a completed date when all outsourcer-owned processes are complete Mail can generally be broken down into two categories: mail that can be responded to and handled appropriately by outsourcer; and mail that must be forwarded to customer 18

19 Business Function Recruiting and Hiring Determine whether this is an appropriate function to outsource Determine if should only apply to certain level i.e., non-management Determine Severity Level for Function Normally no need to determine traditional Severity Level as Service Level is unique Severity Level Failures Measure unsuccessful hires in sole discretion of customer Time Period first three months Try for longer time period Perhaps varies with seniority of new hire Service Level Credit Equivalent to employment agency forfeiture of all amounts paid for service in connection with terminated hire 19

20 Common Problems with Service Levels Outsourcer is usually prepared to commit to continuing Service Level for outsourced function Three Problem Areas: A. Function measured but data appears unreliable to outsourcer B. Existing function but not previously measured C. New function Solution for A: Contract for post-commencement Date verification period to measure Service Levels If actuals are lower, adjust Service Levels downwards as new base-line If actuals are higher, option on Customer to adjust Service Levels upwards as new base-line Solution for B and C: Contract for post-commencement Date measurement period to measure actual Service Levels If actuals are lower, adjust Service Levels downwards as new base-line If actuals are higher, option for Customer to adjust Service Levels upwards as new base-line 20

21 Risk Management Strategies Contract for as short a Term as possible Contract for full or partial termination if certain key Service Levels are missed Contract for extensive transition services to make the divorce easier to manage Contract for Extraordinary Events to require contract (and pricing) to be reopened Contract for non-exclusivity/repatriation This is the ability of Customer to remove up to a certain percentage of services each year without increase in unit charges for remaining services Have the business units affected by the outsourcing totally involved in the negotiations Have the personnel responsible for managing the outsourcing totally involved in the negotiations Contract for flexible change control procedures Contract for technology improvements to bring costs down or improve Service Levels 21