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2ND EDITION ROD JONESCopyright © Pearson Australia (a division of

Pearson Australia Group Pty Ltd) 2010

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Chapter 2:

Managing the delivery of HR services

2



HR service level agreements

Increasingly, HR practitioners need to:

• understand the principles and practices of SLAs• be able to define service categories and

products• apply meaningful service quality measurements• understand options for format and structure of

an SLA• know what an SLA should address• be able to draft an effective SLA

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Service level agreements: advantages

Advantages

• increased client awareness of HR support needs and their associated costs

• enhanced HR support staff awareness of the needs of their clients

• joint participation in the negotiation process• better management of services and client

expectations• improved budgeting for clients and HR team

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• improved communications between HR team and clients

• increased HR team motivation from definition of SLA objectives

• a clearly defined process for obtaining HR support services

Service level agreements: advantages (continued)

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Service level agreements: disadvantages

Disadvantages

• clients who do not commit to or adhere to the guidelines set out in the SLA

• inadequate monitoring of the performance of the SLA and changing needs of clients

• time required to develop, implement, monitor and report on SLAs

• requires monitoring of all HR team member duties

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Service level agreements: disadvantages (continued)

• costs of an SLA can overwhelm client expectations

• role of all HR team members requires higher-level communication skills

• unrealistic objectives that cannot be achieved• limited flexibility

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SLA: negotiation guidelines

1. Include as many clients and HR team members as possible

2. Allow every issue to be addressed but avoid confrontation

3. Set parameters for HR service provision but maintain flexibility

4. Explain and detail:• the objectives of the SLA• the scope of available HR support service options• the support requirements of the client

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• limitations of HR support services and the SLA• where applicable, costs and charges in the SLA• how feedback on performance is to be

collected and how the SLA is to be monitored and evaluated

• what reports on service delivery are to be provided to clients

5. Sell the benefits of SLAs and the consultation and negotiation process to both clients and the HR service provider

SLA: negotiation guidelines (continued)

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SLA: Issues to address

An SLA should address the following issues in a clear and succinct manner:

• What are the client’s expectations?• What will the HR team (or other service

provider) deliver?• How frequently will services be provided?• To what standards will services be provided?• Where applicable, at what price will services

be provided?

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SLA: Issues to address(continued)

• What are the client’s responsibilities and obligations?

• What happens if the client does not meet their responsibilities/obligations?

• What happens if both provider and client fail to meet their obligations?

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Documenting an SLA

Steps in documenting an SLA:

1. Scope the agreement.2. Gather details for a formal SLA proposal.3. Confirm the capability of the HR team to

meet obligations in the SLA.4. Detail the agreement.5. Negotiate with the client using the draft

SLA as a starting point only.6. Finalise the agreement.

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Monitoring performance of service provider

In order to monitor the performance of the service provider, there must be agreement at the outset as to the implementation of:

• a regular reporting process• an exception reporting mechanism• regular consultation with the service

provider

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