What is an SLA for RPO Services?
An SLA, or Service Level Agreement, is a professional agreement between the customer and the RPO firm that specifies expectations, objectives, needs, numbers, procedures, and quality of the candidates. This agreement is reached before the RPO begins work, to ensure both parties are aligned on the hiring objectives and goals.
Regardless of whether your organization is pursuing more formal Recruitment Process Outsourcing Services like Full Cycle RPO or Partial Cycle RPO, or more flexible Project RPO or Contingent RPO, an SLA is beneficial to starting on the right foot.
The Benefits of SLA's for RPO Services
The SLA sets both parties up for success from the onset of the partnership between the internal recruiter and RPO firm. It helps guide the RPO company to understand which candidates the customer values, the process that will be used to source candidates and the key metrics for success. By having these specifics outlined, the RPO recruiter can work more efficiently and achieve better results.
The SLA also provides an incentive for the RPO to meet the shared goals. For example, if a portion of the RPO’s compensation is augmented by meeting shared goals, both parties benefit.
What to Look for inSLA's for RPO Services
The typical RPO SLA is made of seven sections:
- Objectives and Needs Assessment – Defines exactly what the customer is looking for and what the final result should achieve.
- Scope Statement - Summarizes what recruitment process and methods that will be used to source and screen the candidates.
- Pricing and Cost Estimate - Outlines how the pricing works and the cost per resume, cost per qualified submission, or cost per hire.
- Organization Chart – Establishes the roles and responsibilities of each contributing member on each side.
- Measurements and Metrics - Discusses how performance will be measured and monitored.
- Work Schedules and Communication – Describes the expected hours of operation and how the two parties will communicate.
- Response and Escalation – Creates a communication plan for issues
If your organization is looking for a professional RPO firm that develops mutually beneficial SLAs to achieve hiring and talent advisory goals, Hire Velocity’s many RPO services can help.
