Shared Services capabilities can help organizations achieve significant economies of scale and service standardization through consolidation. Additionally, they can improve the accuracy of employee information, accelerate the HR functions ability to respond, facilitate greater access to HR services and improve employee satisfaction by creating a "one-stop-shop" solution.
Organizations can realize a cost reduction of between 30% and 50% by consolidating services in an SSC, but they are not a panacea. Implementing a shared services center (SSC) should be made on a case-by-case basis looking at the organizations needs, structure, culture and whether it is large enough to support an SSC solution. When using an SSC to support the HR function (as opposed to F&A, IT, etc.), it is also important to consider the possibility that centralization may de-personalize the services offering.
A few elements are essential to ensure the success of an SSC environment for HR. Some of these are:
- Have a clear vision of desired outcomes and build a strong business case that takes into account the cost of transitioning to a SSC model
- Define the services delivery architecture and build the appropriate technology infrastructure
- Identify core processes and redefine them to fit the new services delivery model.
- Address the issues of people, process and technology. Be clear about how each area will be impacted.
- Develop and maintain metrics with which to monitor and manage results
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