Develop an HR service level agreement - Flexible Learning Toolboxes

Think• In what ways can an HR function add value to an organisation's corebusiness?• What would be the impact on the current HR staff in an organisationthat decides to change from an HR department to an internal HRconsultancy model?• What strategies could be used to sell the concept of an internal HRconsultancy service to:o line managers and supervisorso senior managers and CEOo HR staff (who may not yet be comfortable with the movefrom policy watchdog to business partner)?The role of the HR consultant vs. line managerWhen an HR consultant is working closely with a line manager on dealingwith a particular issue/s, line manager may ask them to deal with the issuesthemselves."Can you please handle this recruitment for me?""Can you just have a chat to this person and let them know where they'regoing wrong?""Can you please run this meeting for me and explain to my managers whatwe'll be doing?"In all of these requests, there is the danger of the HR consultant falling intothe trap of doing the work for the line manager. What is important toremember that as a consultant, you are there to provide guidance, adviceand recommendations including range of options that the line manager maytake into consideration when he/she makes their decision - but essentiallyyou are not usually the decision maker.4 Develop an HR service level agreement: Worksheet2002_329_017 July 2003

Think• How could you get the line manager to make the decisions andimplement the changes instead of you whilst maintaining aneffective working relationship with them?• What strategies would you need to adopt to ensure this does not reoccurwith that particular line manager?Consulting as a processDepending on the nature of the service you are providing to a line manager,your processes of consulting may vary slightly, or some parts may be morecomplex than others.Generally, most consulting assignments should be approached in amethodical, structured way - remember that Prior Preparation and PlanningPrevents a Poor Performance! The secret to developing a good plan is totake the time to ensure that you have considered as much information aspossible in developing your time lines and the project scope - this willensure that you can deliver on-time.Whilst there are numerous consulting models around, generally they followa similar theme:1. Contracting2. Assessment3. Planning4. Implementation5. EvaluationStep 1: Contracting - covers the initial broad scope of the assignment. Inthis step expectations and roles of both the client and the consultant areclarified, as well as the working arrangements negotiated.Step 2: Assessment - where the consultant gathers all the information anddata required to fully comprehend the assignment.Step 3: Planning - covers the development of the action plan by theconsultant, which includes planning timelines, and decisions regarding whoin the organisation they will need to liaise with are determined.Develop an HR service level agreement: Worksheet 52002_329_017 July 2003

knowledge and advice will ensure that your client has access to a variety ofsolutions from which they can make informed decisions.For more complex problems, it may be appropriate to use one of the morerecognised quality tools such as the Ishikawa. Developed by Dr Ishikawawho helped pioneer the quality movement in Japan, this tool is effective indefining causes and developing strategies to overcome these.Figure: Fishbone diagram showing how to organise major & minor aspects of aproblemMajor aspectsof problemMajor aspectsof problemMajor aspectsof problemWhat theproblem isMajor aspectsof problemMajor aspectsof problemMajor aspectsof problemAbove is the Ishikawa model, or "fishbone". At the "fish's nose" is whereyou write what the problem is, and on each of the "fishbones" you list whatthe major aspects of the problem are. These could be issues such as poorcommunication, lack of adequate resources, staff lacking a team approachetc.Once you have listed the major aspects of the problem, you are then in aposition to list a number of strategies to address these particular aspects ofthe problem - these get included along each of the "fishbones". Once thishas been completed for each of the major aspects, you will then haveavailable a variety of strategies for consideration to assist in dealing withthe problem.This model is particularly useful when solving problems with a group ofstaff, and those staff members who prefer to see things representedpictorially.Develop an HR service level agreement: Worksheet 72002_329_017 July 2003

ScenarioList of what you would need to considersourcing to find out required relevantinformationWhat are the relevant pay rates?Do the organisation's recruitmentprocesses factor in trainee recruitment?You discover a line manager isworking outside of companypolicy on industrial agreementswith the number and tenure ofcasual staff. You think that youneed to initiate some workforceplanning so that their staffingprocesses are more streamlined,efficient and within companypolicyA line manager wants toimplement a remunerationstrategy to reward and furthermotivate his sales team.A line manager wants to use oneof your HR consultants full timefor the next three months to assistthem in process reengineering.Your HR consultant has anumber of SLAs that she needs toadequately service during thistime.A line manager wants to recruitstaff on a contract basis in SouthEast Asia. The person will workfor your organisation from SEAsia and will be paid inAustralian dollars.Components of a Service LevelAgreement (SLA)Whilst there are no hard and fast rules about SLAs, it is generally acceptedthat they should contain some essential components to ensure they areeffective:• Scope of service to be delivered• Tasks to be completed associated with the scope of service• Measures or standards - both qualitative and quantitativeDevelop an HR service level agreement: Worksheet 92002_329_017 July 2003

• Monitoring processes• Evaluation processesScope of service to be deliveredGenerally, SLAs should detail exactly what services are to be delivered, andto whom. This can cover one or more functions that the client requires HRto deliver (internally or externally). This would depend on whether the SLAis written for a whole of organisation, or just one discreet business unit orarea. Eg. An HR team may have a general SLA with regard to Recruitment,Selection and Induction of staff that applies to the whole organisation. Inthis case, there would be a series of generic SLAs on each of the HRfunctions performed.Another scenario might be where one area of a company is requiring aspecific level of service in a range of HR functions that differs significantlyfrom the rest of the organisation. In this case, the scope of service to bedelivered would be more detailed and list a variety of HR functions that hadbeen negotiated with this area.ThinkWhat are the advantages and disadvantages of having generic SLA foreach HR function?Tasks to be completed associated with the scope ofservice, and measuresThis section of the SLA should be an accurate list of all the tasks that theHR area will complete that is associated with the scope of service. Thesetasks should contain sufficient detail on the tasks as well as measures. Eg. Ifthe scope of service is recruitment, selection and induction of staff, the taskswould list every aspect that HR would be involved in for this service,including realistic measures:10 Develop an HR service level agreement: Worksheet2002_329_017 July 2003

Table 2: Examples of measures (2 cols)Task to be completedDrafting the advertisementOrganising the advertisement withnewspapersAnswering queries regarding theposition advertisedSending out recruitment packages toprospective clientsReceiving all applicationsSending out acknowledgment letters toall applicantsConduct initial shortlisting of allapplicationsLiaising with the relevant manager as towho will be finally shortlistedBooking venues for interviewsArranging interview scheduleContacting shortlisted applicants byphone and mail for interviewappointmentsArranging catering for selection panelArranging any equipment needed forconducting interviewsProviding an administrative supportservice to the panel when interviewingDrafting up a selection reportAdvising unsuccessful applicants bymailLiaising with successful applicants toarrange commencement dateCoordinating an induction process forthe new staff memberMeasurewithin 3 days of receiving informationwithin 3 days of receiving informationwithin 24 hours of enquirywithin 24 hours of enquiryBy closing date of advertisementwithin 24 hours of closing date of applicationswithin 3 days of close dateTo be negotiated with the managerwithin 2 days of receiving final shortlistedapplicantswithin 2 days of receiving final shortlistedapplicantswithin 2 days of receiving final shortlistedapplicantsPrior to day/s of interviewPrior to day/s of interviewTo be negotiated with the managerwithin 1 week after interviews completedWithin 2 days of selection report finalisationTo be negotiated with the managerWithin first week of new staff membercommencementDevelop an HR service level agreement: Worksheet 112002_329_017 July 2003

Measures or standardsThese components of the SLA may already have been included in the tasksto be completed section. However, this is where some of the qualitativemeasures can be documented.What also can be included in this component of your SLA is the agreedcommunication and consultation protocols that are negotiated with theclient.Try itCompose a list of possible quantitative and qualitative measures thatcould be documented in this component of an SLA.Client responsibilitiesMake clear what are the client's responsibilities as well, for example:• being available to meet with the HR team to resolve issues as theyarise• responding to enquires and requests for information within a certaintimeframe• responsibility for any financial costs associated with the HRactivities, eg advertising costs, assessment tools.Monitoring processesThis component covers what monitoring of the SLA is negotiated andagreed to. This can range from a simple statement of intent through to acomplex monitoring system. Often SLAs with internal HR staff tend to beless complex than SLAs for external HR personnel - this can be due to theneed for further complexity as this details the service to be provided and thefee charged based on this service.An SLA with an internal HR function can be as simple as a statementdetailing that the HR consultant will meet with the line manager on amonthly basis to review the SLA and provide statistics on service providedat these meetings.12 Develop an HR service level agreement: Worksheet2002_329_017 July 2003

Evaluation processesThis component should detail exactly how the service is to be evaluated.Depending on what service needs to be evaluated will determine thecomplexity of this component of an SLA.For example, if the SLA is concerned with Recruitment, Selection andInduction, then the following methods of evaluation may be appropriate:• Questionnaire to all staff recruited seeking feedback on:o level of service provided to them during and after therecruitment processo timeliness and access to relevant recruitment informationo their induction processo whether the job is what they thought they were applying foro their level of satisfaction in the job• Questionnaire to managers of staff recruited seeking feedback on:o level of service provided to them by HR during therecruitment, selection and induction processo their level of satisfaction with the new staff memberrecruitedo whether the selection processes enabled them to recruit theright staff member• Focus groups with managers across the organisation, seekingfeedback on the level of service provided, their general level ofsatisfaction with the recruitment tools used, etc.What is important when evaluating SLAs is to ensure that you consider thefeedback received by all parties, and then assess whether it is appropriate tomake changes to your SLA based on this. At times you may be dealing withline managers who may not necessarily wish to follow correct companypolicies and processes - this may mean that you would need to furtherexplain the rationale behind these in order for them to accept the service youprovide.Think• What would some of the challenges be when dealing with linemanagers who don't feel it is necessary to always follow companypolicy and processes? What steps would you take to deal with these?Develop an HR service level agreement: Worksheet 132002_329_017 July 2003

• If you had a generic SLA for particular HR functions and you hadreceived polarised feedback on its performance, what would you do?How would you approach each of the people giving you thisfeedback?ReadWhat else is in the contract you agree to with external clients? You mayrefer to:Lane S (2003) 'Human Resource Outsourcing' in Australian MasterHuman Resources Guide 2003, CCH, Sydney, Ch 3-130Selling the concept of SLAs to linemanagersOnce you have made the decision to implement SLAs - how do you sell thisconcept to your clients ie. your line managers?Firstly, ensure that you have sufficient consultation time built into yourproject plan in order to sell the concept of SLAs to your clients.It is important that you don't overlook or underestimate the need to sell thisconcept to your clients. In a work environment where expectations onpeople to perform is ever increasing, new concepts can be viewed assomething that will just take up more of their time. You need to considerwhat's in it for them, and focus on the benefits for them if you are going togain their input and commitment to improvement. This may mean having amore personalised, individual approach to selling the concept in the initialstages.The earlier you can involved them in the decision-making processes, thebetter. Most managers will be less likely to take new initiatives on board ifthe final product is presented to them as a "fait accompli" and they have notbeen consulted regarding the process. One way to involve them early is torun focus groups, or individual meetings to flesh out the concept of SLAs in14 Develop an HR service level agreement: Worksheet2002_329_017 July 2003

order to gain their input. Once you have their input you are more likely tobe successful in them taking some ownership of the content. Besides, youmay receive some valuable feedback as to where your current processesaren't quite meeting their expectations.Consulting early with your clients in the process will also ensure that youcan gain their cooperation to adhere to company HR policy and procedures.This is a great opportunity to explain the rationale behind the processes andclarify any issues they may raise.ThinkYou have developed your SLAs as a result of your consultations withyour clients, and you discover that you have omitted to consult with oneof your managers. At this stage your SLAs have been endorsed by theCEO, and to make any changes would be a little difficult. The manageris furious that you have omitted him from your process and demands tohave a meeting with you to discuss - how would you handle this?Case studyJill is the newly appointed HR Manager at K-Tech Wholesaling, and is nowone of the senior managers. There has been a change of senior personnel inthe company recently through some restructuring which has seen some ofthe "old school" of senior managers retire or take voluntary redundancypackages. Jill's brief from the CEO on appointment into her new role is to"move into HR and clean the place up - get some quality systems andprocesses in place, scrap those that are obsolete and make the HR Branchadd value".Jill has been doing some research on the concept of SLAs and is keen tointroduce this concept into the company. The CEO has given her "carteblanche" to implement whatever she thinks will bring HR back into linewith the company and add value.She has a couple of meetings with the HR staff to discuss the concept ofSLAs with them. Some of them are quite keen to try this, but others are a bitsceptical. These are a couple of older staff who have been with the companyfor a number of years and view Jill with some level of cynicism - they thinkthis is just another fad, and that she is just a bit too optimistic andDevelop an HR service level agreement: Worksheet 152002_329_017 July 2003

enthusiastic - after all, they know what will work and what won’t work withthe company!Although Jill has asked them to keep this information confidential at thisstage until the decision is made to go ahead with the SLA, the companygossip line and rumour mill has been working a bit of overtime, so it isn'tlong before Jill receives an email from Robert - one of the managers askingto know what she is planning. He has heard that:• Jill is making all the decisions about what will go into theseagreements without any consultation• It will mean more work for the managers• The service provided by HR will only be what's available in theseagreements - no ad-hoc processes• There will be no flexibility• Timeframes will be strictly monitored and reported on to the seniormanagement groupHe has asked that Jill attend his next team leader's meeting to discuss theissues. What complicates the matter for Jill is that in the past this managerand Jill were colleagues, and both applied for the role of HR Manager. Jillwas successful in gaining the position, whilst Robert was found unsuitablefor the position. Whilst Robert's behaviour has been professional, Jill feelsthat he is very disappointed that he missed out in being considered for theposition and they have not had the opportunity to have a face to facediscussion regarding this to clear the air.Think• How can Jill turn this meeting into a positive outcome for her andher HR team?• What action points should she suggest occur after this meeting• What can Jill do to build the working relationship with Robert?• How should Jill handle the breach of confidentiality with her ownstaff?• What approach should Jill use with the other managers she wants tobe involved with SLAs?16 Develop an HR service level agreement: Worksheet2002_329_017 July 2003

Making the SLA presentationOnce you have drafted your SLA you'll need to present it to your client fordiscussion, tweaking and sign-off. When presenting it remember tohighlight:• how this SLA will benefit the line manager• how it will reflect the company's strategic goals• how it will create efficiencies• that it will provide a good framework for other parts of the companyto introduce SLAs.There may be points on your draft SLA that your client may not understandor agree with, so it is important that you can explain the rationale behindthese decisions effectively, but also be open to reasonable negotiation.ReferencesBlock, P (1981) Flawless Consulting: A Guide to Getting your ExpertiseUsed, Pfeiffer & Co. SydneySmith, R (2000) Mind for Hire: A Practical Guide to ManagementConsulting, University of Western Australia Press, PerthDevelop an HR service level agreement: Worksheet 172002_329_017 July 2003