Challenges Faced While Implementation of HR Shared Services Model Approach

With modern complexities and competition, it is time for the businesses to move vigorously, emphasize the undeniable importance of the shared service approach, and pay due heed to it. Shared service centers play an imperative role in maximizing the business’s operational performance. Shared services centers are separate integrated systems that are responsible for handling the back-office operations of the organization such as finance, payroll, IT, human resource, legal, etc. An HR shared services center facilitates the organization to focus on what matters, it increases the efficiency of the business through economies of scale.

HR consulting services for small businesses along with the shared services approach has become the new go-to option for the businesses since it has really- strong-armed the HR functions by the professionals. It enables the HR professionals to steer and carry the organization with a balanced and efficient talent management approach by not only reducing the costs of resources and operations but also by continuously improving employee experience.

However, the process of implementation of HR shard services in the organization can come up with certain kinds of challenges and tasks that the organization must deal with to ensure a successful and effective implementation of HR shared services.

 The various challenges that can be witnessed while implementation of HR shared services model are: –

Strained HR relations

One of the most difficult challenges that the organization may witness while implementation of HR shared services model is estranged relationships between the local workforce and HR. It creates panic amongst the employees and the superiors that this might create a riff in the personal relationship between them and the HR professionals. Consequently, it is imperative for the organization to maintain a harmonic environment between the employees and the seniors, and HR is treated like a professional business all while ensuring that the connection with the employees is also stronger than ever.

Vaguely described roles and responsibility

It is not uncommon for the organization to lack in terms of describing the improvised roles and responsibilities of the working staff after the implementation of HR shared services which further creates a chaotic and unclear environment to an unimaginable extent. For the company to fully utilize the perks of hiring HR shared services it is important for the company to provide a clear description of roles and responsibilities of the workforce which generally includes:

• Business Partners: acts as the agitator who translates the operating unit’s requirements into HR requirements and further assesses the HR service delivered.
• Centers of Expertise: the subject matter experts responsible for developing the HR programs to adhere to the requirements of the operating unit
• Shared Services Centers: the service centers which are responsible for delivering entire HR services to the customers
• Local HR Delivery: includes those who provide on-site support.

A complete balance between the shared services delivery and clearly defined roles and responsibilities will result in achieving maximum results. The integration and coworking of all these roles are crucial for a successful HR shared services implementation for the organization.

Ingenious Service Delivery

the organization should understand that it is imperative that the service delivery to each group of individuals working in the organization is adhered to in accordance with their requirements and through the appropriate communication channels since users of HR services and information are vast and diversified, stretching from high-level professionals and executives who need the information to develop HR programs to all other employees of the organization.

Non-compliant Shared Services Model

With the continuous evolution of the corporate sector, it is quite obvious for the HR services to change over time fueled by changing governmental regulations or organizational policies. The changes could be immediate or could be a slow process depending on these factors but it is inexorable. To keep up with all these changes, an efficient HR shared services model would be one that is flexible and compliant with the ongoing changes in the corporate world.

International regulations

To create a mark and presence on the international stage level the HR outsourcing companies will help you implement the shared services model that should be flexible and compliant to accommodate the disparate labor laws, financial taxes, etc. Inclusion of centralized HR policies and processes, the common requirements can be taken care of while ensuring harmony between different operating units.