Communication, common vocabulary and team turnover management are key to keeping HR tech supplier relationships efficient and effective.
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Partnerships between Human Resources technology service providers and their employer clients face some of the same challenges as married couples. Both parties come to the relationship with different communication styles, expectations, understanding, expertise and goals. Most clients enter the relationship believing they've made a best-fit choice. But over time, expectations change. Organizations grow, leadership turns over, teammates come and go, and strategic priorities evolve.

Communication is the key to addressing these challenges; and, as in a marriage, an objective third party can help facilitate that communication. Gallagher's Human Resources Technology Consulting team can facilitate communication and achieve better outcomes for improved organizational wellbeing.

Clients regularly call upon our team to help address a problem with their HR technology service provider. Sometimes the client wants to get something more — or different — out of the relationship. In other instances, the organization wants their concerns acknowledged and for the vendor to engage in finding a solution. Worst case, the employer client wants out of the relationship — a business divorce — despite having signed a multi-year contract.

Both sides share the responsibility to communicate

Our experience confirms that seldom is one party solely responsible for a relationship problem. While the employer or their benefits advisor typically brings in our team to help resolve relationship issues, it's not always the service provider's fault. The conflict scenario often stems from lack of a common vocabulary — a source of many client-provider relationship challenges.

What the employer refers to as "real-time updates" may be the provider's "daily file feed," a structured set of product or other data not meant to provide context or prioritized action. This verbal disconnect can create confusion and misunderstanding. And because HR technology represents a small part of most HR managers' jobs, an HR tech provider relationship can create client dissatisfaction if the employer feels the provider doesn't understand the organization's needs or fails to do their job. Our team serves as a translator to define, clarify and document the expectations of both parties.

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Our team successfully saves the client-provider relationship about 90% of the time.

Accountability is another source of relationship stress — who thinks who's accountable for what? Even within the same organization, accountability issues arise. Two functional areas, such as finance and HR departments, may share HR technology responsibility. Each team interacts differently with the provider, but may not interact with each other. Who's responsible for reading the release notes and advising need-to-know personnel? The lack of communication can create conflicting directions for the provider, who may lack conflict management skills. Even when roles are well-defined, a lack of sophistication on the client's part can create issues. Alternatively, providers may struggle to attract and retain skilled workers in today's talent market. We hear consistently from frustrated employers about the revolving door of account managers.

When turnover occurs

Turnover is inevitable for both the client and provider, but seldom does either party facilitate an adequate knowledge transfer.

When the turnover occurs on the employer side, tech providers should start fresh with the kick-off meeting, similar to the initial sales and implementation process. Failure to treat the situation like a new sale risks losing the client. The new client contact should reach out to establish a relationship.

When the turnover occurs on the provider side, it's incumbent upon the new account manager to access and review a record of past interactions. The client should feel like nothing has changed and that the provider understands their needs, versus feeling they need to "break in" a new account manager.

Divorce need not be the outcome

Timely intervention can save a troubled provider-client relationship. Our team successfully saves the client-provider relationship about 90% of the time. When we fail, usually it's because we joined the process too late. In our first step, we meet separately with both parties. We then bring the parties together for a joint meeting and facilitate a discussion about concerns voiced on both sides. We repeat these joint meetings until both parties resolve all issues or agree to go their separate ways.

Sometimes, we prescribe a specific action, such as a change in personnel on the provider side, knowing this option is the only way to retain the client. We've also escalated client problems after recognizing that the client point person is a poor match for the provider. We've told employers to fire providers and told providers to fire clients. For these cases, in our expert opinion the relationship is a bad fit and won't work no matter how much effort both sides invest. "Divorce" is the right step in these rare instances for the health of the client's business.

Changing providers may not be worth the time and cost

We don't lightly make a recommendation to change providers. Employers can be quick to suggest this solution, but the time, energy and cost often aren't worth the disruption. When employers bring product-focused concerns, we remind those using a good commercial platform that they're unlikely to find something significantly better. Instead, we encourage them to invest their efforts in optimizing their existing technology.

When clients struggle with service-oriented concerns, we advise engaging in a good communications strategy and applying best practices for governing the provider relationship. Providers want to deliver good service, but may need more or better communication strategies. Tech providers can resolve most problems if advised at the appropriate time. Two weeks before open enrollment isn't the time to ask for a major rework of a decision-support tool. Most providers are happy to address concerns presented clearly and in a timely manner, minus the drama, to ensure a satisfied and loyal customer.

If you feel frustrated by your current service provider relationship, contact your Gallagher benefit advisor. Ask about how a Gallagher HR technology specialist can help you enhance organizational wellbeing through improved business relationships with your HR technology service providers.

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Disclaimer

Consulting and insurance brokerage services to be provided by Gallagher Benefit Services, Inc. and/or its affiliate Gallagher Benefit Services (Canada) Group Inc. Gallagher Benefit Services, Inc. is a licensed insurance agency that does business in California as "Gallagher Benefit Services of California Insurance Services" and in Massachusetts as "Gallagher Benefit Insurance Services." Neither Arthur J. Gallagher & Co., nor its affiliates provide accounting, legal or tax advice.