expanding the functionality

Lawson Template V.2 July 29, 2011

Expanding the Functionality of HRSS Centers to Include Complex HR

Operations

April 2012,

Carrie Collins, PHR

Copyright © 2011 Lawson. All rights reserved. 1


What is It?

2


Shared Services Defined

The consolidation and sharing of services by

different units or locations to help:

-Achieve economies of scale

-Enhance consistency across organization

-Improve quality

-Leverage technology investments

-Manage labor costs

-Provide greater value to the business

Driven by concept that HR can operate

more effectively when it is organized and

managed according to its two primary responsibilities – transactional and

strategic

Source: Mercer

And of course in today’s economy – “doing more with less”


The Model

A central knowledge base

Use of employee and manager self-service applications from a Web

portal

Most often, but not always, a single HCM

software platform

A call center, internal or

outsourced, for fielding queries

and handling other tasks by phone, e-mail

and chat

Companywide consistent policies and processes, from which standardized,

automated transaction processing can be achieved

Organizations that have deployed self -

service applications, in some cases under a

portal umbrella and further that have moved

to a service center approach, augmented by

call center technology and a knowledge

base that couples person-specific content

with transactional services, have achieved

Service Delivery Excellence.

CedarCrestone Annual HR Tech Survey

Business Week Research


Common Functions

Inquiries

General HR policy

Payroll

Benefits

Compensation

Transaction Processing

Employee Data Management

Payroll Transactions

Training Registration

Tuition Reimbursement

New Hire/Termination Processing

Benefits Processing

Open Enrollment

Services Provided

Relocation Services

Expatriate Services

Employee Feedback Surveys

Compensation Administration

Incentive Program Administration

General Communication

Ad Hoc Reporting


Tiered Escalation Approach to Resolve HR Inquiries

Tier 0

Self Service

Tier 1

Service Desk (HRSD)

Tier 2

Case Resolution (HRSD, COE, HRBP)

Tier 3

Policy (COE)

HR Portal

Policies and Procedures

Frequently Asked Questions

Employee Information

– Earnings Statement

– Vacation Balance

– Benefits Enrollment and

Changes

Submit Online Inquiry /

Request to HR Service

Center

Rewards Administration

– Rewards Vendor

– Current Merit Information

Resource Links

– Knowledge Center

– PAS / Performance

Management

General Inquiries – Payroll

– Compensation

– Benefits

– Leave Management

– Wellness

– Reports

– Performance Management System

– Testing

– Referral Program

Employee Data Changes

Recruiting Application

Process

Manager Request to Post a

Position

Knowledge Center Access

Requests

Employee Records Request

Employment Verifications

Mortgage Verifications

Appeals

Exceptions

Issue Management

–Payroll

–Compensation

–Benefits

Leave Management –

Complex / Escalation

Executive Compensation

Report Requests

Labor Relations

Employee Related

Emergencies

Harassment Notification

Cross HR Operating Model Case Management

Feedback reviewed and actioned to enhance HR portal knowledge repository and customer experience across tiers 6


Why Change It?


What’s not working with the model as deployed

8

Implementation

When HR functions moved to this model they often did not make

significant changes in roles

HR skill set

The model requires capabilities that HR, as a whole, does not have

Transactional services

Baseline transactional services are often not being delivered

flawlessly

Line managers

Line managers need to have the skills and tools to manage their

employees and are not getting the support they need from HR

Geographic focus

The current model often does not account for delivering operational

services, that require specialist knowledge, in person

Mercer


Three hypotheses about the next generation HR model

9

1. There will be fewer HR Business Partners in

the future

2. COEs will let go of transactional work to focus

on design

3. Line managers and employees will get better

support from HR and how they get that support

will change

Mercer


Shared Services will be key to achieving better support

10

The bulk of HR’s administrative, transactional and operational work

will be in Shared Services

Most HR resources will be in Shared Services

Case/Geography Managers will be embedded locally

as operational executors –reporting into shared services

Primary customer is the manager

and employee, secondary customer is the COE

Mercer


What’s Next?

11


Sourcing Mix

12

If it’s done, someone’s doing it in a “shared services” model. In particular, LOA

administration and onboarding support appear to be gaining prevalence in shared

services scope.


Centralized Employee Relations

13

Almost half have

centralized employee

relations, with 18% being

part of shared services

scope.

Centralized employee

relations functions tend

to include a fairly wide

breadth of services.

(Source: 2010 SSI mini-survey, 27

respondents)


How to Choose?

14


Prioritization of Processes/Activities

Benefits

• Level Of Transactional Activities

• Strategic Value

• Activities Dispersed Through Organization

• Activity Spend (or Activity Headcount)

• Fragmentation of Activity (Touches/FTEs)

Ease of Implementation

• Standardization of Systems

• Business Unit Specificity

• Degree of ES effort underway

• Business / Security Risks

• Process Maturity

15

Initial Focus

Low Priority

High Priority/

Longer Term

Lower Value


and Some tips on process…. Design

1. Document, Document,

2. Gap Analysis

3. Make Your Case

4. Internal Controls

expanding the functionality

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shared services

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employee

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