Why HR Shared Service Centres fail

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HR Shared Services

HR Shared Services are set up to streamline HR activities, which reduces costs, increases the efficiency of business processes and frees up time to concentrate on strategy.

HR Shared Services functions can add a lot of value if you do it right. If you get it wrong, it can have a negative effect on employee experience and relationships throughout the business with HR can be damaged.

Technology plays a big part in making HR Shared Services effective, but the exact structure and scope of HRSS really depends on the company and various other factors.

Why does HR Shared Services go wrong?

Organisations use shared services as a way of streamlining their HR activities, typically concentrating transactional activities into a centralised and commonly shared function. The shared service model can help businesses reduce costs and increase the efficiency of processes and allow a greater focus on HR strategy.

When done well, HR Shared Service Centres (HRSSC) add untold value to an organisation. However, get it wrong and it can ruin employee experience and destroy the relationship between HR and the wider business. But why does it fail?

You haven’t engaged the business in the change

When you implement an HRSSC, two groups of people need properly consulting. The people working in the shared service centre and those who will be using it. Both of these groups are equally important. You need to take your customers on the journey with you and engage and influence, in order for them to understand how you’re changing the way they currently do things. If either of these groups of people aren’t engaged, the SSC simply won’t work.

You have rushed it

Delivering an HRSSC into a business takes time. It isn’t something you can decide to do and then implement within 2 weeks. You cannot do it half-arsed. There are a lot of things to consider – from mapping out processes and ensuring you have the right technology, right down to hiring and onboarding the right talent. All of these things take time. If you rush any areas and don’t give them the time and attention they need, the chances are they will fail.

You don’t use analytics to measure success and continuously improve

Establishing the right metrics to analyse in an HRSSC is the key to success. By monitoring data, you can see how your teams are performing and highlight inefficiencies and potential problem areas, that may need investigation.

Measuring results and data enables informed decisions to be made that drive your HRSSC to continually develop and run better. This gives your HR teams the resources they need to be successful, provides employees with a better experience and ultimately gets the business results you want.

Poor leadership

Having the right leader is important for any team, particularly in a shared service environment. If you have the wrong leaders in a shared service centre, the wheels can fall off the entire operation, leaving you with an unhappy, disengaged team who lose their passion for delivering excellence. When this happens, the knock-on effect across the business can be immense.

A good shared service leader should be able to look beyond the SSC and understand the impact it has on employees, as well as customers and clients.

You don’t have the right technology

Technology is a fundamental component of any HRSSC. If you don’t have the right technology, then the SSC just won’t work. So, you need to check that your current HR systems are fit for purpose. Take time looking at your current systems and processes and what you need them to do. HR tech is a big investment, so make sure you choose the right one. Meet multiple vendors, get demonstrations – and challenge them, to make sure the system does everything you need it to. Modern HR technology allows HR to manage incoming requests, review case histories and related employee files, provide consistent responses and escalate a case when necessary.

You are probably reading this and wondering why I am writing all of this, because it all seems like common sense, right?

You would be amazed at how often people miss out one of the key elements to ensure their HR Shared Service Centre is a success.

So, do you agree? Have you had a Shared Service function which is been fantastic or failed spectacularly? Share your experiences!

If you would like to find out more about re:find and how we can support you and your business then please get in touch.

James Cumming is our MD, Interim and Transformation Search specialist. If you’ve got a hard-to-fill role and need some help, get in touch. Connect with him on LinkedIn.

How to progress your interim career

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I asked my network about an interim career and if they thought interim professionals could focus on their own development. Or if they were dictated by what was out there on the market and got a number of thoughts and opinions back.

A concern of many individuals in permanent employment is the perceived lack of career progression as a contractor. Some think that if you move into interim employment, you stay in that one position for the rest of your working life.

Sarah Cowley, Executive Coach

“Managing one’s career takes courage, and the confidence to say no. A successful career is dependent on personal growth which results from spending time and money on learning.”

A key difference of the employment status of an interim (becoming a LTD company) is the mentality. You’re not just an individual carrying out an assignment (or a job) but actually thinking and behaving like a business. Just as any other successful business might do, you need to innovate and develop.

Steve Lungley, Interim Transformation Director

“We will have had to define our services, identify the markets, sectors and environments in which we want to operate. Then develop marketing and channel strategies, sell our services and deliver them (brilliantly of course, because our reputation depends on it). On top of tht manage all those other things day to day things like accounting, tax and VAT.”

Like any business, understanding your routes to market is absolutely pivotal. Developing your personal and employer brand are key to finding that next assignment. Developing broader business management skills such as finance, sales and marketing are necessary to having a successful interim management business.

Barry Flack, Interim HR Director

“We have to supplement the assignment with a need to hone true business development capability – and personally – given that your proposition is everything. Then it requires a constant need to learn, adapt and stay relevant.”

To continuously develop your brand, you have to get your name out there through delivering successful assignments, communicating with key decisions makers and staying front of mind through social media channels (such as blogging, as well speaking and attending seminars in the relevant subjects and sectors).

Of course, all these activities take time and in the life of an interim this may be at the weekend, evenings or may even require you to take unpaid leave – so it’s not all plain sailing.

Although the activities outlined above certainly require additional time on top of the day job, they can bring increased opportunities.

Paul Powell, Interim Head of Resourcing

“Some of my moves have been intentional, gaining functional or sector knowledge and have involved calculated risk. It’s often meant stepping outside of the confines of my comfort zone. As a result, I have gained some good experience and a portfolio of skills, plus it has allowed me to share some pretty powerful insights with some clients.”

The interim market provides a wealth of opportunities and challenges. There’s short-term problems to fix, ideas to come up with and to deliver quickly. It can, therefore, be an exciting place for the right people.

Hayley Proctor, Interim Head of Resourcing

“Being the interim allows you the freedom to be bold and disruptive with your ideas to drive positive change…you are also expected to be the master of your ideas so learning and experimenting become the norm, whilst you’re given far more freedom and autonomy than your permanent counterparts.”

As an interim, there is no forced structure to your development as there is in permanent employment. You are expected to provide your own advice and guidance in this respect, to take responsibility for your own career and your own development.

Sharon Green, Interim OD and Change Expert

“I set aside a budget each year for CPD, ask clients for feedback and want to keep developing my business”.

Regardless of whether an individual is a permanent employee or an interim, if that person wishes to continuously develop their capabilities, they will progress.

I had a recent conversation with a senior HR director, who has just been offered a year’s extension. (And turned it down for the right reasons!) The CEO couldn’t believe that they were leaving, to go to nothing…who in their right mind would do this in permanent employment?

I think the feedback is overwhelmingly positive regarding an interim career. However, this is very different from being a permanent employee and won’t be for everyone!

So in summary:

  • Interims are often thrown in the deep end and need to learn new skills.
  • They need to be responsible for their own development and need to ensure that they make it happen.
  • Interims think of themselves as a business – building a proposition and delivering against it.
  • They are adaptable and learning broader skills (rather than developing their career vertically).

James Cumming is our MD and leads our HR practice. He has recruited senior HR professionals for over 15 years and has experience in finding niche HR talent. Connect with him on LinkedIn here.

If you would like to find out more about re:find and how we can support you and your business, then please get in touch.

Why this whole Millennial thing gets on my nerves

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Why this whole Millennial thing gets on my nerves
Why this whole Millennial thing gets on my nerves

Hi, my name’s James and I am not a millennial…you can tell this by checking out my picture on LinkedIn. Although I still think I’m 18 years old, I now know for a fact – after a recent visit to a well-known high growth sportswear brand in Birmingham, where I was the one sticking out like a sore thumb in middle-aged chino brigade outfit, whilst all the cool kids were dressed like a scene from Gucci crossed with Men In Black – that I am most definitely not!

But I just don’t get it? Why is there such a big deal being made about this generation, I don’t think parents have ever understood the generation below them have they? Whether it was rock music in the 50s or rave culture in the 90s, it has always seemed a bit different, hasn’t it?

According to Wiki – Millennials also knows as ‘Generation Y’ or ‘Gen Y’, are the generational demographic cohort following ‘Generation X’ and preceding ‘Generation Z’.

And if you happen to work in HR – this seems to be the second worst thing people like to talk about. (That is after why hasn’t HR still got a seat at the top table. DON’T START ME!)

The thing I think companies do need to consider when recruiting these days is that information availability and choice are greater than they have ever been. I recently posted a blog that I wrote following an interview with Simon Brown, around his experience of a recruitment process – the gist of it was that it was not a great experience. I think a lot of this comes down to trust. Employers still seem to be stuck in the dark ages – micromanaging people, not giving them any freedom and expecting lots from them, but giving nothing in return. Check out most job adverts and you will see what I mean.

There are so many things that are easily done to build a productive and happy workforce – whatever the ‘generation’. Trust is the missing ingredient in my mind… many employers simply don’t trust people to do the job they are paid to do. I remember a senior MD (at a firm I used to work) told me as a newly promoted Director “INSPECT rather than EXPECT”. Seems a bit archaic today, but many people still have this as their mentality.

I don’t think that labelling an entire peer group is particularly productive – instead, we could all treat people like adults regardless of their age. Whether that be through the recruitment process, the onboarding process or throughout their career!

To discuss further, you can email me on James@refind.co.uk.

You can view more about James Cumming our change and business transformation specialist here.

Hiring an Interim Executive? You need to get it right! Discover the 8 step process you should follow, by downloading our free eBook here.

The business change journey

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the business change journey
The business change journey

Over the past few years, I have had a lot of people ask me what is meant by the term ‘business change’ and why do they need it? Not being a subject matter expert myself, I thought who better to ask than my wife who a) is always right about stuff and b) just happens to be a business change expert. (Go on, have a nosy at her experience). This was written over 2 years ago, but is still relevant, because, guess what – she’s still always right!

She told me about travelling for one assignment – as she was going through security at JFK airport – she was asked to provide her job title and I’m sure many of us have had the same confused look she got from security when trying to explain her profession. (I’m a headhunter?!).

She defined her role as “managing the journey we might go through when moving from one way of working to another”. The security guard clarified it for her “like ice melting to water, moving from one state to a different one?” and actually this made a lot of sense (more sense than going into any further detail at that moment, for anyone who has ever been through US passport control!).

So, simply put, business change is moving from one way of working to another and it could be focusing on either a strategic, technological, process or organisational change (or a combination of the four).

Businesses spend millions of pounds on new technology, developing highly skilled programme teams to implement it and setting up new processes and ways of working to create supportive infrastructures. But in many cases adoption rates are low, new ways of working don’t work and businesses don’t get the return on investment they were hoping for. This can leave businesses wondering ‘what happened?’.

From experience, where businesses tend to fail, is thinking that the new way of working is the final destination for the project (this view is compounded by the fact that many businesses tend to remove project teams as soon as a change has been implemented with a view that things should just work as expected).

Any change, whether it is technological, organisational or even a minor process change, has to be embedded in those who are impacted, ensuring that they truly understand how their day to day working practices have/will change going forward. This is why business change is so important. It ensures the company – and not just the decision makers – moves to the new way of working.

“The role of a change expert will help stakeholders determine what the final destination actually looks like and then plot the journey to get there.”

A change expert will support stakeholders and sponsors in gaining answers to the following questions:

  • What does the proposed culture look like?
  • Will individuals be bought into the change?
  • What reluctance is expected and how can we manage that?
  • How do we expect employees to behave and what knowledge do we want them to have?
  • Do they see the benefits and are they on board with making it a success?
  • “What does good actually look like?”

A change expert will help plot the journey and how that journey will take place, make sure everyone’s informed of the destination, get everyone a passport and ensure the employees get there, whilst participating in the experience and supporting to achieve overall success.

To discuss further, you can email me on James@refind.co.uk.

You can view more about James Cumming our change and business transformation specialist here.