CWS 3.0: August 6, 2014

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The new, improved quarterly performance review

Typically at the end of each calendar quarter or mid-year, CW program managers (and their MSP partners, if applicable) conduct a performance review of each staffing partner active in their programs. Historically, these individual performance review sessions focus on the most recent staffing partner performance in supporting the buyer organization’s contingent workforce requirements, program and strategy.

Sometimes there are service-level agreement (SLA) and key performance indicator (KPI) comparables to review; sometimes past improvement commitments by the both the staffing partner and buyer are evaluated. The performance data available may or may not be abundant and clear. Too often, these client/staffing partner discussions end up being tedious and ineffective for all parties involved.

More and more, enhanced VMS tool capabilities report SLA and KPI data on a continuous basis. With ongoing visibility of SLA performance, programs do not have to wait months to address supplier performance issues. In fact, waiting three to six months to address performance outliers can be damaging to a program.

But the meetings should still happen. Rather than focus on the SLAs and KPIs, though, they should drill more specifically on a strategic performance change agenda, creating a strategic partnership with the staffing firm and enhancing supplier/program interactions. For example, this more strategic type of gathering might call for guest appearances of key engagement managers or others who can enhance the staffing partner’s understanding of how to be more successful in the program.

With this new goal in mind, here are some points to keep in mind during supplier meetings, if not other interactions.

  1. Allocate sufficient time to conduct the performance review thoughtfully and properly. This sets a more formal tone and the resulting actions/improvement commitments will be taken more seriously.
  2. Even if supply chain partners like a master vendor facilitates the mechanics of a performance review, the CW program owner should be involved in setting the agenda of staffing partner performance reviews. Don’t allow the staffing and/or supply chain partner to control the performance review agenda.
  3. Gather and analyze performance data before the performance review in order to present credible, undeniable cases to justify the change/improvement commitments you agree to with the staffing partner. Don’t wait until the moment of the performance review meeting to evaluate a staffing partner’s recent performance data.
  4. Occasionally visit the staffing partner’s facilities to learn more about their organization and new service capabilities they may possess. Don’t hold all performance review meetings at your office.
  5. Based on agreement stipulations, be careful to appropriately maintain the confidentiality of staffing partner names participating in your program when you deliver competitive ranked standings to others. In any case, don’t divulge confidential staffing partner intellectual property.
  6. Gather worker quality and engagement manager satisfaction data to support your process. Don’t ignore qualitative indicators. Also, staffing partner satisfaction levels will provide important insight to your overall program’s performance.
  7. Communicate with the staffing partner regularly, not just at performance reviews, to prevent surprises. Why wait till the performance review to correct problems that can be addressed, ASAP! Don’t use the performance review to unveil surprising news, either tactical or strategic in nature, unless it presents a timely opportunity to professionally communicate change.
  8. Coach underperforming staffing vendors with constructive criticism. Remember, the better your vendor performs, the better your program performs. Don’t berate a poor performance. This especially true in a changing, robust employment marketplace, staffing partners have more choices than ever and you want them to choose your program to deliver their very best talent and service.