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Expanding HRSS centers to include complex HR operations
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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
Lawson Template V.2 July 29, 2011
What is It?
2
Lawson Template V.2 July 29, 2011
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”
Lawson Template V.2 July 29, 2011
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
Lawson Template V.2 July 29, 2011
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
Lawson Template V.2 July 29, 2011
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
Lawson Template V.2 July 29, 2011
Why Change It?
Lawson Template V.2 July 29, 2011
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
Lawson Template V.2 July 29, 2011
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
Lawson Template V.2 July 29, 2011
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
Lawson Template V.2 July 29, 2011
What’s Next?
11
Lawson Template V.2 July 29, 2011
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.
Lawson Template V.2 July 29, 2011
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)
Lawson Template V.2 July 29, 2011
How to Choose?
14
Lawson Template V.2 July 29, 2011
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
Lawson Template V.2 July 29, 2011
and Some tips on process…. Design
1. Document, Document,
2. Gap Analysis
3. Make Your Case
4. Internal Controls
Lawson Template V.2 July 29, 2011
Q & A
April 2012, Carrie Collins
Copyright © 2011 Lawson. All rights reserved. 17