HR shared services consolidates routine HR activities into a central function serving the entire organization. This model improves efficiency, reduces costs, standardizes processes, and frees HR business partners for strategic work.
Services Provided
Shared services typically handle employee inquiries, data management, payroll support, benefits administration, onboarding coordination, leave administration, and other transactional activities. Complex or sensitive matters escalate to other HR functions.
Service Tiers
Many shared services use tiered support. Tier 0 involves self-service and knowledge bases. Tier 1 handles routine inquiries. Tier 2 addresses complex issues requiring specialist knowledge. Tier 3 involves expert consultation for exceptional situations.
Global Shared Services
Global organizations may operate shared services across multiple locations, sometimes following the sun for extended coverage. Balancing global standardization with local requirements and languages adds complexity to global HR shared services.