The positive impacts of the Human Resource Shared Service Center (HRSSC) on business growth

Human resources is a key asset for any organization. To develop long-term relationships with employees and business growth, companies must focus on employee satisfaction and motivation. Drucker (1999) explained that employees voluntarily quitting their jobs is a potential retention issue. Human Resource Shared Service Center (HRSSC) helps organizations retain their employees and also improves their satisfaction level by providing special services. As per research studies, the cost of retaining employees is much less than hiring new ones. During difficult economic times, many companies embraced the HR Shared Services Model to lower the cost of their operations. The companies’ vision is to focus more on core businesses and centralize or outsource support services to boost their productivity. Boroughs & Saunders (2007) stated that the HR shared services model has been widely used and has now become regularly accepted as a means of delivering cost-reduction and enhancing performance levels while providing a foundation for more effective HR services. The core focus of Human Resources management is to understand the unique needs and aspirations of the workforce and create retention strategies that align with the organization’s values and goals. By effectively managing people resources, the organization can achieve the set goals of performance, growth, and profitability. Thus through effective implementation of the Human Resources Shared Services Center (HRSSC) organizations can have a significant impact on employee satisfaction levels leading to an increase in the talent retention rate. Also, HRSSC provides speed, accuracy, efficiency, and consistency in service delivery. According to one survey report by Deloitte (2021), around 57% of the 600 organizations that participated in the survey utilize HRSS centers 80% of the respondents leverage HRSS for payroll processing, and most continue to grow upstream to include specialized HR functions. In one case study on a global multinational company with more than 60,000 employees, it was found that with the use of automated HRSS helpdesk support, they reduced the cost by 65%. In one study on retail organizations, based on data analysis it has been found that implementing HRSSC in Retail Organizations helps to improve Employee Retention. HR Shared Services can cater to a wide gamut of employee needs like payroll, benefits administration, employee communication, query management, organizational policy dissemination, performance management, announcements, employee records management, report generation, analytics, organizational learning, general administration, etc.

Challenges

One of the biggest challenges is ‘One Size’ doesn’t fit all. For some business units, HRSSC can prove to be the right solution and can benefit or complement their business however for some it may be a hindrance. It is therefore important yet critical to determine the value it can bring to the business units, overall organization, and the cost by conducting a cost-benefit analysis.

How can AIDOSOL help you?

With years of expertise and a correct blend of technology, AIDOSOL will support you in cost-benefit analysis, improving service catalogues, and expanding your geographical reach and automation levels. Also, AIDOSOL will help you with process standardization and efficiency complimenting cost-reduction strategies. contact@aidosol.com to get started.