Contract Considerations

Contract Considerations
 
Typical Elements of an RPO Contract.
 

1. Key Terms and Conditions
2. Statement of Work / Service Delivery Model
3. Technology and Reporting
4. SLAs / KPIs
5. Pricing Structure
6. Transition Plan
7. Governance
8. Change Order Process
9. Disaster Recovery

 
 
Lessons Learned / Common Mistakes to Avoid.
 
Mistake #1:  One-sided Deal Terms
 

1. Buyer Consequences:
   1. Delivery problems
   2. “Nickel and Dime”  Approach
2. Provider Consquences:
   1. Unprofitable
   2. Unsatisfied Client
   3. Reputation / Brand Damage

 
Mistake #2:  Setting SLAs with Solid Baselines / Benchmarks
 

1. Buyer & Provider Consequences:
   1. Targets Potentially Unreachable or Too Easily Attained
   2. Potential Financial Rewards / Penalties
   3. Various Aspects of Business Case Not Achieved

 
Mistake #3:  Lack of Contract Flexibility
 

1. Buyer & Provider Consequences:
   1. “Continuous” Contract Negotiations
   2. Inflexible Partnership / Strain in Relationship

 
Mistake #4:  Unclear Roles / Responsibilities / Rules of Engagement
 

1. Buyer Consequences:
   1. Suboptimal Hiring Manager Behavior / Satisfaction
   2. Poor Candidate Experience
2. Provider Consequences:
   1. SLAs Not Achieved (e.g. Time-to-Fill)
   2. Negative Financial Impact
   3. Unsatisfied Client
   4. Reputation / Brand Damage