Archived Insight | April 28, 2021
The 1980s birthed many fads that didn’t stand the test of time, but one of that decade’s more enduring ideas was that of the shared services model. Consolidating a function of your organization that currently exists in multiple parts can lead to significant savings and increased efficiency, particularly when that function is as important as human resources. Our publication helps you determine whether this model is right for your organization.
Switching to an HR shared services model can create huge rewards for your organization, but it doesn’t come without risks. Training new staff, building new processes, leveraging new technology, and overcoming cultural inertia are just some examples of why you need to carefully consider if a shared services model is a right fit for your organization before committing to the change.
This publication can help guide you through the questions you’ll need to ask yourself in order to figure out if the HR shared services model will work for your organization, and it outlines a proven process for gaining approval, building the structure, encouraging acceptance and monitoring and improving shared services over time.
COVID-19 added a new dimension to operations and a new impetus for shared services. Many organizations today are struggling in the face of continuing pandemic-related challenges. Loss of customers, delays by suppliers, marketplace volatility, missing key workers, slow-to-collect receivables and pandemic-based restrictions are only some examples of the challenges. Whether they’re trying to do pre-COVID business with fewer resources or are looking for new efficiencies to offset new challenges, shared services may be one solution.
Moving to HR shared services can help an organization establish standards and harmonize policies and procedures. By reengineering how people perform work, automating repetitive steps where possible and balancing workloads across HR functional teams, HR shared services can provide a path to continuous improvement of service, higher value and a better employee experience.
More analysis on how you should evaluate if an HR shared services model is right for your organization can be found in the publication.
This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.
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