Why HR Shared Service Centres fail
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 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 a 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
You don’t use analytics to measure success and continuously improve
Establishing the right metrics to analyse in a 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.
Having the right leader is important for any team, particularly in a shared service environment. If you have the wrong leaders in a share 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 customer 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 in a success.
So, do you agree? Have you had a Shared Service function which is been fantastic or failed spectacularly? Share your experiences!
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