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Developing an HR Shared Service Model

With efficient delivery of services being the mantra today, it is not surprising that more and more organizations are adopting the shared services model for delivering their HR functions. Not only does this adoption change the role played by HR in the strategic development of the company, but also ensures cost effectiveness at the operational level, which makes it doubly advantageous.

However, there are various factors that you should consider when developing an HR Shared Service Model, which could easily affect the success or lack thereof of its adoption and implementation.

Reasons for developing such models

Before going onto actually looking into the factors concerning development of an HR Shared Service Model, it is important to understand the reasons behind needing one. Here are some of the main reasons:-

·         - To enable HR to become a wider part of business change.

·         - To help achieve greater flexibility, which in turn would encourage quick response to changes occurring in the business.

·         - To help improve learning within the organization, across all boundaries.

·        - Finally, to move from being an administrative department towards better and more useful involvement in the overall strategy planning and building of the business strategies.

It is believed that with an HR Shared Service Model, organizations can create best practices for delivery of their services. Moreover, it helps organizations become more sensitive towards the needs of their customers while also monitoring delivery of their services. Consistency and accuracy is achieved through the adoption of the shared services model for HR functions.

Principles to consider when developing a Shared Services Model for HR

When creating or developing an HR Shared Service Model, it is important to consider these four basic principles, which will ensure its success:-

·         Clarity about goals and expectations: Understanding what you are trying to achieve through these shared services and expressing this clearly will go a long way in ensuring successful development of an HR Shared Service Model for your organization. In other words, you need to be clear about your goals and motivation behind developing this model. Additionally, it is important that you are clear about the expectations of your employees. Managing these expectations while remaining clear about your goals is the first step towards successful development of any shared services model.

·         Process orientation: It is important to develop an attitude where you understand the processes or activities that bring about a particular outcome. This helps you to understand reality better while ensuring that you take steps to accommodate this reality in your implementation. It is important that you take this into account during the designing as well as the implementation stages of your model.

·         Understanding the customer: Knowing what the customer wants and how he or she wants it will help in ensuring that you deliver the perfect service. Given the geographical as well as cultural expanse that one is faced with in HR, this could be quite daunting. However, when you take this into account when designing as well as implementing your model, you can be assured of a smooth transition.

Finally, it is important to understand that the HR Shared Service Model is like an independent business and not a mere function. Thus, like any other business, it grows and evolves, and requires undiluted attention for its successful existence.

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