At work, we have so much to do we don’t have time to waste. Okay, we might wind down at Christmas and have a couple of weeks off over the summer but most of us are on overdrive for most of the year.

With any task you do, you need to make sure you know why you are doing it and whether it’s going to give you the return you want; okay, let’s not forget that if your boss has told you to do it, you do it regardless of whether you think it’s a good idea or not!

What Is A PSL Preferred Supplier Agreement?

A PSL is a list of approved recruiters or recruitment agencies that have committed to an agreed rate and level of service. Businesses use these agencies exclusively (or give them first refusal) for new vacancies.

So, when considering your PSL what criteria is the most important to your company? What are your main reasons for reviewing your PSL? Are you looking to lower costs, or are you looking for tighter control over your processes and who you work with?

Reasons To Review Current PSL’s

Reviewing your PSL provides insight into which requirements are hard to fill, and you will be able to evaluate whether margins should be increased or decreased or if you need more partners for specific requirements. Ultimately, relationships work both ways, so the more you invest and share with your workforce and your suppliers, the clearer your company’s expectations are, which will contribute to effective and efficient recruitment throughout your company.

A great reason to review your PSL is to evaluate your current providers and check that the standards your business requires are being met. Are your providers financially stable and working ethically? It is also an opportunity to re-evaluate the standards, to improve service-level agreements and to regulate the terms and conditions across the business.

Use this as an exercise to get feedback from your suppliers, as there will be agencies who have both positive and negative experiences from which you can learn. Certain agencies, who previously performed well, may have become disenchanted. There are other companies who will be motivated and inspired by being given the opportunity to potentially work with your company again and will thrive in a competitive environment.  It will also ensure that your current high performers don’t become complacent.

Is this a yearly exercise or is there a specific driver? Is this ‘your’ project and what other employees need to be included? It is helpful to know which partners are performing well, who is under-performing and why one company is successful where others aren’t. If certain organisations are performing well, you can use this exercise to understand why and share the knowledge across your suppliers to improve standards universally.

The Process

At the beginning of the review process, evaluate your current providers and check that the standards your business requires are being met. Are your providers financially stable and working ethically? It is also an opportunity to re-evaluate the standards to improve service-level agreements and to regulate the terms and conditions across the business.

Considerations

• Has your company grown? 

1. 1. 1. You want to make sure the preferred supplier can meet your demands.

• Has the quality of service slipped? Are standards being met?

1. 1. 1. It is helpful to know which partners are performing well, who is underperforming, and why one company is successful where others aren’t. If certain organisations are performing well, you can use this exercise to understand why and share the knowledge across your suppliers to improve standards universally.

• Have there been any company changes from your provider?

1. 1. 1. If the supplier is not financially stable, there may be a risk to the continuation of service.

• Are there any PR issues or ethical working issues?

1. 1. 1. Your brand reputation might be indirectly affected by association.

• Has it been over 12 months since an agreement was made?

1. 1. 1. Is this a yearly exercise, or is there a specific driver? Is this ‘your’ project, and what other employees need to be included? It is helpful to know which partners are performing well, who is underperforming, and why one company is successful where others aren’t.

• Are you getting the best price or deal?

What Should You Do?

1. Have Clear Objectives
2. Involve Key Management
3. Review Current Processes
4. Realign Standards
5. Consider New Suppliers
6. Research New Technologies (ATS) & Recruitment Services
7. Conduct Interviews
8. Share Information & feedback