As a 20-year human resources veteran, Patrick Perry knows the mistakes business owners make when they look to an outside firm to help manage their companies.
What most novices to outsourcing do not realize, he says, is the importance of guiding the process from the very first phone call.
Perry, president of the Employers Resource Council, recently shared with a breakfast meeting crowd of business owners tips on getting first-class service from HR providers. Written proposals are a good way to compare two or more service providers, but Perry warns that simply calling and asking for a proposal can be a dangerous move.
“Providers love that,” says Perry, who ran across the trend many times during his HR career. “They weren’t controlling the process, I was.”
When he asked what he should include in the proposal, some business owners had no idea what to tell him. Here are eight points Perry suggests business owners should ask outsource providers to cover in every proposal:
1. Statement of understanding: This should be a simple statement showing the provider understands the specific needs of your company.
2. Overview of provider firm: A brief history of the firm and how its experience relates to your industry and product.
3. Project objective: A way to make sure service providers know exactly why they are being hired and what is expected of them.
4. Approach: A step-by-step breakdown of how the provider plans to achieve the goal, including a timeline of how long each step should take.
5. Timing and related professional fees: A vital portion of the proposal, because the only reason you outsource is to save either time or money. Be cautious about jumping on the most inexpensive proposal because very often, you get exactly what you pay for.
6. References: A service provider has handpicked its references to give the best possible impression. Look for information on how a provider responds to problems, rather than trying to find one with a perfect track record. “No one is that good,” says Perry. “I just want to know people try hard.”
7. Staffing: Request biographies of the team working on your project. They should reflect each individual’s experience with similar projects, education, achievements and community and professional involvement. Also get biographies of any subcontractors that will be used.
8. Value-added services: Ask if there are any extras the company could offer to make your project better. “What extras can they bring to the carpet?” says Perry. “What are the ancillary services they have that can make a difference on your project?”
Sticking to these guidelines, says Perry, will separate the good companies from the ones just looking to make a quick buck: “The 20 percent of the provider industry that makes the rest of us look bad can’t handle this.” How to reach: Employers Resource Council, www.ercnet.org
Jim Vickers ([email protected]) is an associate editor at SBN.
