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HR SHARED SERVICES: 1 What are the different benefits of outsourcing and shared services? With outsourcing you lose control of, and access to, the staff. The cost savings are similar but the new center will be less able to link their goals and development to that of the parent company or front line business units. That said, there are circumstances when outsourcing is the better move. These include when wage rates and benefits structures, if kept in-house, would grow significantly higher than outsourcing costs; when the company may be unable to invest in administrative services during tight times; when moving to shared services will cause too much disruption; or when the company is too small. 2 Who are the key stakeholders in HR shared services? Senior management Ð without their ongoing support, buy-in from the business units will be undermined. Business unit heads Ð they are the main customers. HR professionals Ð they have the most to lose (but also, if you get it right, to gain). 3 How can you turn administrators into service providers? Select/re-select on the basis of their ability to interface with customers first and their technical skills second. Devolve responsibility downwards Ð and reward for it. Engender strong team cohesion and flexible working. Give maximum freedom in how work is undertaken provided standards and targets are maintained. Develop a culture distinctive from the rest of the company. If you are a subscriber, click here to read the full briefing. Click here to find out how to subscribe. |
