People Management Performance Management

What are HR shared services & the benefits of HR shared services?

HR departments can benefit from using an hr shared services model to deliver services to employees more quickly and effectively.

It provides an opportunity to decouple the operational from the strategic, allowing each department to provide the best possible employee experience.

Let’s take a closer look at HR shared services, including their benefits and limitations, as well as best practices for HR shared services.

What are HR shared services, and what do they entail?

HR Shared Services is a centralized centre for HR administrative and operational tasks, characterized by employee self-service and automation through technology and multi-tiered levels of service and response times. This enables businesses to perform conventional HR services in the most efficient manner possible.

In an HR Shared Services environment, the various tiers provide standard services such as:

  • Payroll
  • Data management for employees
  • Administration of leaves and benefits
  • Services for relocation (international and domestic)
  • Recruiting operations
  • Services for learning
  • The HR service centre, 
  • as well as reporting and analytics

A multi-tiered HR service delivery architecture includes HR shared services. It allows the HR department’s other divisions to concentrate on strategic objectives.

Advantages of utilizing the HR shared services.

HR shared services include several advantages for your company, including:

  1. HR becomes strategic: The split of tasks allows HR specialists with more expertise to focus on strategy. This opens up more opportunities to assess HR’s performance using Human Capital metrics that link the department’s success to the organization’s strategic goals. HR needs to contribute to the formulation of the business strategy as a true business partner. It guarantees that the organization’s business plan prioritizes people management and a great employee experience.
  2. Compliances and consistency: HR issues are always addressed in the same, consistent manner, ensuring that you follow all applicable rules and regulations. This results in a better employee experience and risk minimization inside the firm.
  3. Excellent operations: Organizations can achieve operational excellence by allocating defined tasks for administrative functions. This is accomplished through the use of streamlined processes and workflows. Operational excellence improves employee experience and efficiency in addition to providing better HR services.
  4. Employee experience enhances: Employees can quickly resolve difficulties and find essential information. This improves their digital knowledge as well as their overall staff experience. Employees expect all systems to be entertaining, simple to use and meet their requirements. This includes the methods with which they engage at work. Employees become frustrated when there is a disconnect between their expectations and their experience.
  5. Cost reduction: shared services can help businesses save money in a variety of ways. For example, transactional HR services require less skilled HR specialists, resulting in cheaper labour expenses. Furthermore, the efficiency gained by streamlining and simplifying services aids in the reduction of cost.


Organizations and HR departments should try to deliver efficient and cost-effective employee services.

HR transformation into shared services can be a great approach to improve your employee experience while also allowing you to focus more on HR strategy that is consistent with your company’s objectives and goals.

Before investing in HR shared services, leaders must consider the difficulties and take proactive steps to address them.

HR shared services investments are long-term investments. As a result, for firms to continue to profit from an effective shared services model, visionary leadership is required, as well as a willingness to continue investing in technology.



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