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Plan for HR Shared Services
Look before you leap! Engage in detailed planning and design to find the right HR shared service model. McLean & Company is a research and advisory firm providing practical solutions to human resources challenges via executable research, tools and advice that have a clear and measurable impact on your business. © McLean & Company. McLean & Company is a division of Info-Tech Research Group. SAMPLE Learn about becoming a member
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EXECUTIVE SUMMARY Key Insight: SAMPLE Situation
Limited resources are putting pressure on HR departments to improve their efficiency. At the same time, HR needs to deliver more strategic value, provide data on the types of services it offers, and improve the quality of its services. Resolution Follow a detailed planning process to create a shared service model that is tailored to your organization and specifically created to achieve your objectives. Ensure employee experience is considered throughout the process so the final product will fit their needs. Complication Shared services are a common response to these challenges, but are extremely complex and differ in many ways from one organization to another. Large-scale transformations like shared services require a lot of buy-in, but organizations are hesitant to disclose details before they know what the final outcome will be. There is no single HR shared service model that fits everywhere. Use a detailed planning process that identifies objectives, maps the current state, and then explores several options for improvement before deciding on a final recommendation. SAMPLE
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GUIDED IMPLEMENTATION
MCLEAN & COMPANY OFFERS VARIOUS LEVELS OF SUPPORT TO BEST SUIT YOUR NEEDS CONSULTING “Our team does not have the time or the knowledge to take this project on. We need assistance through the entirety of this project.” GUIDED IMPLEMENTATION “Our team knows that we need to fix a process, but we need assistance to determine where to focus. Some check-ins along the way would help keep us on track.” DIY TOOLKIT “Our team has already made this critical project a priority, and we have the time and capability, but some guidance along the way would be helpful.” WORKSHOP “We need to hit the ground running and get this project kicked off immediately. Our team has the ability to take this over once we get a framework and strategy in place.” Diagnostics and consistent frameworks used throughout all four options SAMPLE
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Use this blueprint to design an HRSS model that fits your organization
This blueprint will walk organizations through the initial process of exploring and designing a shared service model. It can be used by organizations looking to implement shared services for the first time, or by those that are seeking to make major changes to the current structure of their shared services team. SAMPLE
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SAMPLE SLIDES SAMPLE
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HR aspires to deliver exceptional client service through HRSS
What Are HR Shared Services (HRSS)? A consolidation and standardization of HR activities and services within a centralized function. Commonly supported by a technology framework that can include an HR portal, knowledgebase, case management software, and telephony tools. Source: Sivak & Card, 2014 What goes into shared services? Administrative Typically used to consolidate traditional administrative activities across HR, some organizations are using HRSS to deliver higher value-add services like recruiting, learning & development (L&D), and performance management. While less common, some organizations opt to consolidate HR, finance, and IT departments under a single shared services function. Shared services also provide the opportunity to free up HR staff to focus on strategic tasks. Consultative McLean & Company insight The prevalence of the three-prong model – HR Business Partners (HRBPs), Centers of Excellence (COE), and HRSS – has led many HR departments to conclude that HRSS is a necessary approach to deliver services. However, there are situations where it is not appropriate, and service delivery is best left to localized HR. SAMPLE
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Timeline to Achieved Desired Cost Cutting
Well-designed HRSS should deliver a better experience at a lower cost, in the long term Employee Satisfaction Cost Saving While it is not uncommon for HRSS implementations to be followed by a decline in satisfaction levels as clients adjust and processes are improved, over the long term HRSS deliver improved average client satisfaction scores. Moving to a shared service model can produce savings of 25-50% (Honey, 2016). 4+ Years (15%) Timeline to Achieved Desired Cost Cutting Satisfaction Growth Rate Source: PwC, 2014 Half of organizations expected to wait more than 2 years to achieve their cost targets, while practically no organizations planned for this in the first year. “ Cost was the traditional reason for moving to shared services, but today it is about getting better, and improving customer service. – Karla Younger, VP, HR Shared Services, The Coca-Cola Company Year 1 Year 2 Year 3 Year 4 ” Source: Hilton, 2015 McLean & Company insight Significant change management is required to ensure clients are supportive of shared services. Even when successful, HRSS typically only raise the average level of client satisfaction; it’s important to realize that there may be small pockets of clients who previously had exceptional service and may be faced with a decline in service levels. SAMPLE
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Improving HR service delivery can provide a competitive advantage to organizations
Top-performing HR organizations spend 23% less and use 32% fewer HR FTEs than the average company (DiRomualdo et al., 2016). Delivering efficient and high quality services is a business imperative for HR. Executing basic service requests is the top driver of business satisfaction (McLean HRSM Survey, N=2,395; 2017). Improving the effectiveness of HR operations is associated with more strategic HR. Highly Effective HR Operations (%) by Strategic Classification 23% 42% 59% McLean HR Trends Report N=808 Strategic HR was 3.8x more likely to be rated as highly effective compared to tactical HR. This matters, because organizations with highly effective HR were more likely to achieve their goals. Tactical Operational Strategic McLean HR Trends Report, N=780; 2017 (See Appendix for strategic classification methodology) SAMPLE
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LEARN ABOUT BECOMING A MEMBER
MCLEAN & COMPANY HELPS HR PROFESSIONALS TO: Now, more than ever, HR leaders need to help their organizations maximize the value of their people. McLean & Company offers the tools, diagnostics, and programs to drive measurable results. – Jennifer Rozon, Vice President, McLean & Company “ Empower management to apply HR best practices Develop effective talent acquisition & retention strategies Build a high performance culture Maintain a progressive set of HR policies & procedures Demonstrate the business impact of HR Stay abreast of HR trends & technologies Sign up to have access to our extensive selection of practical solutions for your HR challenges LEARN ABOUT BECOMING A MEMBER Toll Free: hr.mcleanco.com SAMPLE
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