We’ve explored the significant benefits of an HR Shared Service Center -- but reorganizing into a Shared Services model takes real planning to be successful. If you don’t account for a few fundamental priorities, your HR Shared Service Center is sure to fail. Here are the 3 ways that your HRSSC can be avoidably unsuccessful.
1. Don’t give HR the technology they need
Technology is a foundational component to any HRSSC. Without the right technology, HR is simply unable to work efficiently and improve services. Technology is what makes the most important functions of your HRSSC possible. For Tier 1 support to work, you need a case management system to handle employee requests. If you’re going to serve employees in different regions, you need centralized, digital employee files. Modern HR technology allows HR to manage incoming requests, review case histories and related employee files, provide consistent responses, and escalate a case when necessary. Technology drives effective services for employees while also giving time and resources back to HR reps; without good technology, your HRSSC won’t be able to operate effectively.
2. Don’t track metrics
Establishing metrics to drive continuous improvement ensures you have the insight you need to get your HRSSC is running as effectively as possible. By monitoring KPIs, like Service Level Agreements, you can understand how your HR teams are performing and where you have inefficiencies and bottlenecks. Without this kind of information, your leadership can only make blind decisions about your HRSSC. Measuring results and data enables your leadership to make informed decisions that drive your HRSSC to continually run better and better - giving your HR teams the resources they need to be successful, providing employees with a better experience, and giving you the business results you want.
3. Don’t streamline HR processes
Examining your HR processes can help you find places to eliminate unnecessary steps and ways to be more efficient. The move to shared services is an opportunity to take an audit of your current processes. If processes aren’t streamlined, time and resources will be spent on manual, repetitive tasks, and you won’t be able to realize all the benefits of moving to a shared services model. HR will take more time to resolve requests and services, and information may be inconsistent across your organization. Streamlining HR processes can save you time and money, and help make your HRSSC even more efficient.
From transactional to transformational HR: Avis Budget Group
In 2015, the HR department at Avis Budget group embarked on a major transformation journey. Among globalizing their operations and implementing a core HR system, they set up shared service centers. The goal was to free up their HR resources in the field so they could spend less time on administrative work and more time on strategic initiatives and employee engagement. This kind of shift is the cornerstone of transformational HR. In this video, hear from Sherry Knaszak, VP of HR Transformation and HRIS, Avis Budget Group, on why she chose PeopleDoc’s technology to get the shared service centers functional.
Does your HR shared services center need a local HR presence?
Setting up an HR shared service center (HRSSC) has many benefits. For one, it can help an organization be more efficient by centralizing and streamlining certain tasks. HRSSCs also play a big role in transforming the employee experience. With the right technology, this operating model allows HR to provide employees with the ease and immediacy they’ve come to expect in today’s service world.
4 Signs of Excellence in an HR Shared Services Model
The benefits of a Shared Services model have already been proven in IT and Finance, and now many organizations are applying the model to HR. A Shared Services model can help HR work faster and more efficiently, and provide employees with great service. Reorganizing into a Shared Services model can be a substantial investment so it’s important to follow best practices to gain optimal results. We’ll take a look at 4 best practices that are critical for your HR Shared Services Center (HRSSC) to operate smoothly so that you can see valuable business results faster.
Nicole Lindenbaum is the Director of Product Marketing at PeopleDoc by Ultimate Software. Nicole leads the global messaging strategy for PeopleDoc by translating technology into business benefits HR can actually understand. With significant experience in HR technology, Nicole writes and speaks about HR service delivery, employee experience, digital transformation, and the future of work. Nicole holds a BFA from Syracuse University and an MBA from Washington University in St. Louis. She lives in Brooklyn, NY.