Why do companies have service-level agreements in their relocation contracts?
Understanding how service-level agreements (SLAs) work can benefit your mobility program. Plus Senior VP of Contracts and Compliance Stacey Myhro has the details.
Complete transcript: “Hi, I’m Stacey Myhro, vice president of contracts and compliance for Plus. Today, my question is, ‘Why do companies have service-level agreements in their relocation contracts?’
Service-level agreements, or SLAs, are specific benchmarks or metrics used to describe the desired performance standards for the relocation provider. SLAs have the highest value when they contribute directly to the company’s business objectives.
Some common metrics in the relocation industry include:
- Response time, from when the provider contacts the relocating employee or the client
- Quality, usually in the form of satisfaction ratings
- Accuracy, especially as it relates to the expense auditing or tax contributions
- And timeliness. Is the provider hitting all the agreed upon milestones and deadlines?
Each metric should have its own performance target based on actual experience to ensure they are realistic and achievable. Setting a target too low may fail to meet the business objective, yet setting it too high sets the relationship up for failure.
It is important for companies and their relocation provider to agree on specific SLAs and reporting early in the sourcing or contract process. This ensures that the relocation provider knows and is committed to achieving these objectives.
Managing the service-level agreements is a continuous effort that require monitoring and adjustment through the life of the contract. SLAs are a great tool for companies to evaluate the health of their mobility program as well as the relationship with their providers. Thanks for watching.”