7 Benefits of HR Shared Services
Regardless of size, most businesses are growing at a fast pace. It’s for that reason leaders within these businesses realize see many of their internal services hit their limit. HR is not immune to this effect.
In fact, HR can be tested daily as tasks need to be completed at a similar pace and at a much higher frequency. This is where changing a normal HR approach over to an HR shared services approach can become a real solution.
HR Shared Services – What is it?
Simply put, HR Shared Services is a strategic way to provide HR-related services to an ever-growing employee base. And it comes with some advantages such as continuity and efficiency. Here are seven advantages to following this type of strategy.
- Consolidate HR tasks and software
When a company expands rapidly, leaders often find a fair amount of redundancy in the HR department. In some instances, work is duplicated over several people or different departments, and sometimes, these different HR entities are using different software to manage the same task. By consolidating these tasks and software under one HR shared services team, most companies will see an increase in efficiency and cost savings.
- Optimize HR operational efficiency
A growing company must have an HR team that goes with it. If not, most will see a drop in efficiency. Under a shared services strategy, tasks that warrant such an action can be transferred to people within the HR hierarchy that can take over such duties. One example would include payroll processing. This frees up other HR professionals on the team to focus much more attention on people and talent pool development.
Continuity is a big deal as companies continue to expand. Following an HR shared services strategy allows for processes to be undertaken in the same way each time. A good example of where this can be successful is through the onboarding of new employees. In this manner, each employee is onboarding with the same proves and standards as the co-worker before them.
- Internal resources can focus on strategic tasks
Employing an HR shared services approach allows for companies to focus on more strategic tasks. Those include tasks such as talent management, human capital development, recruitment and retention. All these processes are of significant importance to the company’s growth strategy.
- The development and retention of the talent pool
With the previously mentioned tasks in place, companies can focus on recruiting and developing an intelligent talent pool to help build a better business and increase positive business outcomes. Bettering the talent development processes allows for continuous engagement, rewarding and retention of the talent pool.
- Increases employee experience
With using an HRSS strategy usually leads to a faster service. That means employee requests are filled more quickly and employee questions are answered correctly. This kind type of service means employees have positive interactions with HR. Fostering positive interactions between employees and HR supports a better employee experience across the organization.
- Saves money
Moving HR to a shared services strategy is an investment. Through an HRSS, companies can automate processes, reduce manual tasks, and centralize information, which means that less time and resources are required to resolve a request. And saving time on manual and redundant tasks enables HR to spend more time, as previously mentioned, on strategic work which leads to a higher return on investment.
Not all companies will choose an HR shared services strategy. To be quite honest, it doesn’t work for everyone. That’s neither a good thing nor a bad thing. It’s just reality. That said, HR has a real responsibility to their employees and their companies to find the most strategic, efficient, and cost-effective way to function. An HRSS strategy offers a great deal of opportunities to succeed on these attainable goals.
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