Len Simmons, COO for Altius offers some advice on how to successfully monitor contractors using key performance indicators (KPIs) to ensure that they abide by your contractual agreements and meet targets.
It is important not to set the KPI too high or low and to understand that your contractors need time to adjust to your expectations and way of working. Contractors may cut corners to meet unrealistic performance targets.
Communication is vital to ensure your relationship continues, therefore KPIs should be used to provide routine feedback on how your contractors are doing.
KPIs can provide the statistics to help you to take action when discovering problems externally with the contractor or internally within your organisation.
A software system that can accurately store and monitor KPIs can help remove the administrative burden and instead put the focus back on the contractor to sort out any problem.
Both parties should communicate effectively to find a resolution for mitigating factors that may mean that contractors have a reason for missing their KPI. Where your customers are exposed to contractors, you should consider including their opinions too.
It is essential that you monitor when important information comes back to you, to keep on top of compliance. Judging the track record of contractors in their administration and communication with you is also vital.
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