HR Shared Services: A Strategic Necessity

HR shared services have been around long enough now for the benefits to become clear. No surprise, the most important benefit to organizations is cost savings. In fact, studies have shown that savings from shared services are typically in the range of 15% to 40% of labor cost. But there are other benefits as well. In addition to productivity gains (the source of most cost savings), companies are increasing process efficiencyBy moving to a shared services model for the human resources organization, companies are realizing other benefits as well: greater productivity, gaining deeper intelligence about the HR function, and improved improving employee satisfaction, among others benefits.

What is ‘HR Shared Services’?

HR Shared Services is a way of centralizing, standardizing, and automating certain HR tasks and administrative functions so they can be handled more efficiently. An HR shared services model usually involves a call center staffed by agents trained to help employees with routine requests, and a self-service website or portal where employees can perform basic tasks themselves (like updating home address information or completing time cards online). In addition, the model generally includes case managers with specialized expertise, who can answer the more complex questions that employees can’t resolve themselves and that are beyond the level of the call center agents.

Technology is Critical to HR Shared Services

A robust technology platform is key to a successful HR shared services model. The platform should provide an easy-to-use employee and manager self-service application (typically accessed through an intranet, portal, or company website); a knowledge base accessible from both the self-service application and the call center; and a case management tool that call center agents can use to create and track requests and that automatically escalates complex requests to the appropriate case manager. It may also include a partner component for those aspects of shared services that are outsourced.

HR Automation Increases Productivity

Simplifying processes and automating administrative tasks through shared services is a proven formula for productivity. According to a 2009 study by Deloitte Consulting, a majority of HR shared services centers become even more efficient over time, thus reducing the need for additional staff as the company grows. For example Air France, which implemented Neocase HRPower, has achieved productivity gains between 15% and 20%, according to Guillaume Laurent, Director Shared Services Center at Air France. Neocase has been "a tremendous time-saver,” he says.

Business Intelligence Leads to New Insights

Laurent of Air France also appreciates the "robust reporting” capabilities of the Neocase solution. In-depth reporting is important for tracking the amount of time required to handle an HR request, the number of escalations, the responsiveness of agents, and other factors critical to the success of the shared services model. Neocase HRPower, for instance, includes business intelligence features such as a flexible reporting engine, multi-dimensional OLAP reporting, role-based dashboards that provide managers and executives to get real-time information.

Employee Satisfaction is a Key Outcome

With deeper business intelligence, HR management can focus on and continuously improve employee satisfaction. That’s certainly the case with Air France. With its Neocase solution, Laurent says, employees can now feel more connected to the HR department and confident that their questions are being addressed quickly. The Deloitte survey found that increasing "customer satisfaction” was a top priority for organizations implementing HR shared services, right after reducing costs and improving processes.

Shared Services is a Strategic Asset

At the end of the day, according to Deloitte, organizations that see HR shared services as "a business and strategic asset” will get the greatest value from their investment. Without question, HR shared services reduces costs, drives productivity, and increases employee satisfaction – but it also frees up HR domain experts to use their expertise to benefit the business. And by demonstrating how shared services reduces overall costs, HR is in a better position to secure the capital investments it requires to play that more strategic role.

Neocase: A Solution at Every Level in Tiered HR Service Delivery

Neocase Software includes key components to enable a tiered HR service delivery model, including an HR help desk application for mid-size and large organizations, a self-service portal, and an integrated knowledge base. Numerous successful organizations, such as Air France, Atkins, and Guardian Life Insurance, have realized substantial benefits from implementing a Neocase solution. For more information or a demonstration of how Neocase can help you cut costs and improve efficiency within your HR organization, contact us today.