Contractual obligations if a 3rd party Call Centre is unable to recruit the FTE you require

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Contractual obligations if a 3rd party Call Centre is unable to recruit the FTE you require
Hello everyone,

Can I ask guidance on the following request.

My company is hiring two 3rd party Call Centre to help with peak volumes. We want to provide them the required number of FTE's for each month.

What type of penalty clause (SLA objective) can we include that hold the 3rd parties accountable if they are unable to recruit the number of FTEs we require and cause us to miss our assigned SLA targets.

Any advice is appreciated.

Thank you


Call Centre Helper

A different price for calls answered in SLAs and those not in SLA
The simplest solution is to introduce a two tier pricing model

One tier (the higher price) is for all calls that meet an agreed Service Level Agreement - e.g. answered within 20 seconds and with a minimum quality score of 75%. e.g. £1.20 per minute.

The second tier price is for all calls that do not meet the quality standard. e.g. £0.80 per minute. That provides an overall framework.

The downside of this is that you can get hung up on whether this call was 74% quality or was 76% quality.

The other option is to have a base level price and a bonus if a higher level target is met for the day. e.g. if 80% of calls were answered in 20 seconds with an average quality score of 75% and a NetPromoter score of over 20%. This is then fairly easy to measure and enforce.

Thank you Jonty...
Thank you Jonty

Clause in SOW
I've worked extensively with 3rd party call centers and what has worked for me to is to include a clause in the SOW about fulfilling the FTE requirement by getting the 3rd party company to hire 10% additional staff at their own cost without passing that to you. This way you are protected at any time. Having a variable pay or a half yearly penalty also works.

Clause in SOW
Thanks Mukund,

Can you share with me the clauses you have used in the past.


Clause in SOW
@Danny - SOW is a legal document, so the parties signing this become legally obligated to adhere the terms.

After signing the SOW, your 3rd party vendor has to have excess staffing (after mutual agreement) otherwise action can be taken that can also include termination of the contract (this would be extreme).

Penalty Clause in SOW
I agree that you should stipulate a penalty clause for non compliance to the FTE agreement plus additional to the impact on the Service Levels separately, i.e. if the 3rd party fails to meet your FTE count but still manage to pass or exceed Service Levels then penalize them only for the FTE.

Create a different clause for Quality and other Critical KPI/s important to your Operations as needed but limit them to maximum 5.

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