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How to create a partnership that benefits both sides

30 October 2017

Fostering a Partnership

In fostering a relationship with any supplier it is critical to understand the reasons why you are going to an external supplier of goods or services in the first place.

When it comes to recruitment you should consider why are you are considering outsourcing all or part of your recruitment process? In doing so you must understand that by outsourcing you will not immediately fix all that is currently not working but will create a partnership that will ultimately better the business. It is important to manage your initial expectations internally to give the relationship the opportunity to develop in the long run.

So as a business, you have now asked all the necessary questions, satisfied yourself with the answers and decided to outsource all or part of your recruitment process. Now it’s over to obtaining the best return on investment (ROI) for that outsource.

A proven method of fostering or managing the relationship with your supplier is to put in place a structure based on the principles of SRM or Supplier Relationship Management.

Given the time and cost it takes to identify and foster a relationship with an outsourced Recruitment Services Supplier, it makes sense to put a system in place that consistently provides a way of managing and interacting with your supplier/s. This is all about promoting collaboration and continuous improvement!

What Is Supplier Relationship Management?

Supplier Relationship Management takes traditional sourcing levels to the next level. Depending on the size of your company or the sophistication of your sourcing processes, it could include anything from a meeting with prospective suppliers and a presentation of rates which can be overseen by Operations management to a full blown (RFP) Request for Proposal or (RFT) Request for Tender. Either way you are using a process to select a Recruitment Services Supplier that derives the most up front value for the contracted service.

SRM uses processes, principles, communications and tools that can help your company better manage its existing or prospective Recruitment Services Supplier once the appointment has been made within all areas of the company during the entire supplier life-cycle. This can provide mutual benefit for all parties through an appropriate investment of time, resources, and executive support.

Once your Recruitment Services Supplier has been identified and contracted through the sourcing process, SRM drives a consistent way of interacting and managing that critical supplier. The result is improved relationships and continuous improvement from the supplier.

As your Recruitment Services Supplier is treated more as a partner rather than just a commodity supplier, they will be encouraged to be more innovative in addressing your requirements. This will be all whilst delivering the best service or product now and throughout the contract life-cycle.

Fostering a Relationship Can Extend Supplier Value

Once your Recruitment Services Supplier has been sourced and contracted to provide recruitment services in the form of your choosing, three different scenarios can play out in the management of that supplier:

1) Relationship can be virtually neglected over the course of the contract

Even the well-executed contract does little good if there is no relationship. After months of neglect, the original deal is, for all intents and purposes, invalidated. The supplier has not been kept accountable to terms during the contract period and the quality of services can decline while costs escalate beyond contract terms. As the agenda of both parties has changed over the contract period, lack of communications has grown into distrust or disinterest and the value attained during the original sourcing period is long gone.

2) Relationship Value Maintained, but not maximised

which still falls short in creating long-term value beyond contracted terms. In this scheme, Recruitment Services Suppliers are only evaluated on what is currently happening and information is exchanged periodically, usually at milestones or when issues must be addressed. Regular account review meetings are treated informally and agendas lack the proper level of client buy in. Without clear decision making authority, ownership, and leadership on both sides, opportunities are missed and issues begin to fester. Contractual value is maintained, but not maximised.

3) Relationship value is delivered in the short and long term – SRM

Through constant collaboration with your Recruitment Services Supplier, supplier relationship management programs aim to deliver incremental short- and long-term value with suppliers. While supplier performance management ensures costs and activities follow contract terms and that KPIs are met in terms of quality and service, supplier collaboration via SRM creates new supplier value beyond the contract.

Your Recruitment Services Supplier should be proactively engaged to exchange information and ideas on a regular basis and be more accountable and consistent in providing higher quality services. Value continues to grow after the contracted savings stage, with suppliers making important contributions to your company beyond the original contact scope.

A strong recruitment service partner could be the next step in your business growth life-cycle.

CONTACT US for more information.


The HORNER team

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