WIXLIB

HR SH ARED SERVICES STUDYSpecialized Case ManagementSoftware is GrowingSurvey results indicate a growing demand for full-functionHR-specific case management systems to effectively trackissue resolution and measure effectiveness of an HR sharedservices function. In fact, nearly three-quarters (72%) ofrespondents have deployed such a solution.25 12 16347818tOrganizations that have not implemented rich portalsand case management systems are more likely to reportthat they have failed to achieve the results they expectedfrom deploying HR shared services (see page 22 for moreon these results). This is a clear indication that in-housedeveloped applications cannot provide the same levelof functionality as leading case management solutions,resulting in difficulties in meeting delivery capability goalsand cost objectives.IMPLEMENTING CASE MANAGEMENT SOFTWARE18% SAP8% Outsourcing VendorProprietary Tool7% Oracle CRM4% Salesforce.com4% PeopleSoft Help Desk3% BMC3% Neocase Software14Driving a Customer-Centric Employee Experience Through HR Shared Services25% ServiceNow12% I n-House Developed(includes SharePoint)16% Other

HR SH ARED SERVICES STUDYChannels of CommunicationChanging with TechnologyAdvancementsNot long ago, employees had little choice in how they couldaccess HR services. An employee could walk into the localHR office or contact HR shared services via an email addressand phone number, often with a rudimentary phone menu.their developmental and adoption infancy. While they arebecoming increasingly common in areas such as financeand retail, their utilization in HR is still low, at just 6% and 8%,respectively.Fast-forward to today and we see the available channelsof communication are evolving to keep pace with howemployees prefer to access information. While call centertelephony remains a key channel (81%), nearly 40% ofrespondents now interact with employees via onlinechat, which was considered merely an emerging channeljust a few years ago. Other technologies such as virtualassistants and robotic process automation are still inFurther, while the need to reach employees “where theylive” is often touted, mobile deployment remains quite low.Just 34% of respondents provide mobile access to theknowledge base, and less than 20% provide access via amobile application to the other service channels. However,as organizations continue to invest in offering servicesthat meet customer needs and preferences, this is likely tochange.ACCESSING HR SERVICES ACROSS MULTIPLE CHANNELSUtilizedNot UtilizedDon’t Know88%Knowledge Base85%Case Management1%60%8%81%6%0%11%86%20%Driving a Customer-Centric Employee Experience Through HR Shared Services2%35%39%Online Chat1528%65%Document Management1%19%70%Workflow AutomationArtificial IntelligenceVirtual Assistance14%81%Call Center TelephonyRobotic Process Automation12%40%6%60%80%100%

HR SH ARED SERVICES STUDYDRIVING A CUSTOMER - CENTRIC EMPLOYEEEXPERIENCE THROUGH HR SHARED SERVICESChoosing theRight Location16Driving a Customer-Centric Employee Experience Through HR Shared Services

HR SH ARED SERVICES STUDYTalent Availability is the TopFactor in Selection of SharedServices LocationIn a related finding, a significant number of organizations(43%) have established multiple regional centers. This likelyreflects the desire to provide regionally and locally adaptedservices to employees across the globe during normaloperating hours, thus increasing customer satisfaction.As companies strive to identify the most suitable locationsfor their shared services centers, they overwhelmingly citetalent and skills availability (64%) and proximity to employeepopulations (50%) as key factors—outpacing labor costs,which are considered key by just 45% of respondents.FACTORS INFLUENCING THE CHOICE OF HR SHARED SERVICES LOCATIONSKey FactorMinor FactorNot a Factor64%Talent /skills availability19%50%Proximity to employee populationsLabor costs45%Location of company employees tojoin HR Shared services management45%Co-location with other companyshared services or operations28%0%31%Centers16% Single Centerwith Global Scope4% Single RegionalCenter26% Single In-CountryCenter43 26 41611t17Driving a Customer-Centric Employee Experience Through HR Shared Services26%28%40%GEOGRAPHIC DEPLOYMENT OF HR SHARED SERVICES11% Multiple In-Country19%29%28%20%17%12% M ultiple RegionalCenters27%44%60%80%100%

HR SH ARED SERVICES STUDYOrganizations Serve Employeesin Native LanguageDelivering customer-centric services requires a thoughtfulapproach that facilitates ease of communication foremployees and managers. Accordingly, organizations shouldstrongly consider providing native language support forboth voice service and online content. Survey respondentsreport multiple languages supported by their service centers,with English, French, Spanish, Chinese (most frequentlyMandarin), and German the most commonly supported.English is the only language almost solely supportedthrough in-house agents (vs. third-party translation services),because many organizations have designated English astheir language of business. Additionally, approximately 50%of organizations support Spanish and French via in-houseagents.SERVICE CENTER LANGUAGE SUPPORTLanguages Available in HR Call Center(s)100%Language Not Offered3%80%60%40%Languages Available in Online Content seGerman0%EnglishSpanishFrenchIN-HOUSE LANGUAGE SUPPORTIn-House Language Services100%Third-Party Translation Services3%80%47%50%3%3%60%40%No hineseGerman0%English18Driving a Customer-Centric Employee Experience Through HR Shared Services

HR SH ARED SERVICES STUDYDRIVING A CUSTOMER - CENTRIC EMPLOYEEEXPERIENCE THROUGH HR SHARED SERVICESAligningHR SharedServices in theOrganization19Driving a Customer-Centric Employee Experience Through HR Shared Services

HR SH ARED SERVICES STUDYShared Services Aligns to HROrganizations vs. a Global BusinessServices ModelMost organizations using HR shared services are optingto operate it as a stand-alone function aligned to the HRorganization rather than as a part of a global businessservices (GBS) organization (84% vs. 16%), which typicallyhouses a number of supporting functions (finance, IT,procurement, etc.) under one umbrella. Regional andsingle-country organizations are slightly more likely to alignHR shared services under a GBS model than companieswith multi-country operations (29% vs. 14%). This is mostlikely a function of complexity and scale. As the scale andcomplexity of HR delivery increase, there appears to be apropensity to leave shared services in a stand-alone model,acknowledging the need for a specialized approach withstrong local and regional subject matter expertise.16 84 t29 71 t14 86 tH R S hared S ervices A lignment—G B S or S tandalone84% Stand-AloneFunctionUnder HR16% Multi-FunctionGBSC ompanies W ith O perations in O nly O ne C ountry71% Stand-AloneFunctionUnder HR29% Multi-FunctionGBSC ompanies W ith O perations in M ore T han O ne C ountry86% Stand-AloneFunctionUnder HR20Driving a Customer-Centric Employee Experience Through HR Shared Services14% Multi-FunctionGBS

HR SH ARED SERVICES STUDYReasons for Movingto a GBS ModelOrganizations that have moved to a GBS modeloverwhelmingly cite cost reduction (62%) as a major factorin their decision to move to a multi-function model for HRshared services delivery. Other commonly cited reasonsinclude the desire to leverage technology investments acrossservice functions (54%), leverage management acrossservice functions (46%), and leverage staff across servicefunctions (46%).R eason for M ove to G B S M odelMajor Factor100%90%80%70%Minor Factor7%Not a 50%40%30%62%20%54%38%10%0%Achieve costLeverageLeverageLeverage across serviceprocessfacilitiesinvestmentsacross servicefunctionsacross servicesfunctionsfunctions21Driving a Customer-Centric Employee Experience Through HR Shared Servicesintegrationinvestmentsacross serviceacross servicefunctionsfunctions

HR SH ARED SERVICES STUDYServices BundledTogether in GBSAmong those companies employing a GBS model,accounting (77%) and procurement (77%) are mostcommonly paired with HR, followed by IT support (69%),legal/compliance support (46%), and facilities support (46%).S ervices B undled T ogether in G B SSame Shared Services Organization as HRNot Same Shared Services Organization as ortIT SupportDriving a Customer-Centric Employee Experience Through HR Shared Services

HR SH ARED SERVICES STUDYDRIVING A CUSTOMER - CENTRIC EMPLOYEEEXPERIENCE THROUGH HR SHARED SERVICESAchievementof ObjectivesThrough HRShared Services23Driving a Customer-Centric Employee Experience Through HR Shared Services

HR SH ARED SERVICES STUDYCost Reductions, HR Transformation andDelivery Capabilities Achieved ThroughHR Shared ServicesOrganizations that have deployed HR shared servicesreported strong success in achieving many of their statedgoals. When it comes to their top objective of improvingdelivery capabilities, respondents say they are eithermeeting (61%) or exceeding (10%) expectations. Similarly,they reported either meeting (62%) or exceeding (5%)expectations in enabling HR transformation. While reductionof cost was not the top stated objective, organizations areracking up gains in that area as well, with 64% reportingexpectations met and 9% reporting expectations exceeded.Organizations fell short of achieving their objectives in twokey areas: improving customer satisfaction and achievingprocess harmonization. When we look deeper at the data,a few findings emerge that could explain the apparentdisconnect in improving customer satisfaction. Of those thatresponded, nearly half reported using something other than aleading HR portal solution and case management tool.We continue to emphasize with our clients that they mustmake these critical investments to support a customercentric experience when deploying shared services.Similarly, in relation to the struggle to achieve processharmonization, we observed an even split in organizationsthat have deployed an on-premise HCM system vs. thosethat have deployed a SaaS HCM platform. We are seeingorganizations that have recently implemented new HCMsystems struggle to improve service delivery and customersatisfaction because they opted for a “lift-and-shift”approach to processes and supporting roles. As a result,these organizations are missing the opportunity to step backand determine how HR processes can be better configuredfor a shared services model. Therefore, while designing newshared services processes, it is crucial to understand thetechnology that is being implemented and how the customerwill interact with it in the organization’s service deliverymodel. Ignoring this can lead to broken processes andcustomer frustration.O bjective A chievement—H R S hared S ervicesCannot Say at This Point in Time100%9%5%64%62%Falling Short of Expectations10%Meeting tSupportIT SupportDriving a Customer-Centric Employee Experience Through HR Shared ServicesSurpassing Expectations

HR SH ARED SERVICES STUDYFuture Plans for HR SharedServices in a GBS modelOf those in a GBS model, only a small number respondedto our question about achieving expected results. Theyreported the most success in achieving cost savings andleveraging staff and technology. However, over 50% didn’trespond to this question, which could indicate a lack ofmeasurement or knowledge of the actual achievement ofthose objectives.9 14 163015tLooking ahead, there appears to be no strong trend towardmoving to a multi-function GBS model for HR sharedservices. While 39% are thinking about moving to a GBSmodel, just 9% have a specific plan for doing so. We believethat organizations should prioritize customer-centric deliveryover cost reduction when changing their HR shared servicesdelivery model.F uture P lans for H R S hared S ervices A lignment—G B S or S tandalone16% No response15% I don’t know30% No25Driving a Customer-Centric Employee Experience Through HR Shared Services9% Y es, and specificplans exist14% Y es, but no specificplans exist16% O nly exploringpossibilities

HR SH ARED SERVICES STUDYConclusionSavvy leaders understand that patents, property, and products will take them only sofar in achieving their growth goals. It’s their people who are the true determinants oforganizations’ success—or failure. Increasingly, these critically important people arecoming to expect an employment experience that matches what they encounter wheninteracting as consumers in their lives outside work.At the same time, leading organizations recognize the need to transform HR in order tofocus their resources on the most value-added activities (e.g., attracting and retainingtop talent and developing effective leaders). Introducing a leading practice HR servicedelivery model supports these objectives.K incentric B est P ractice M odel for H RCenter of Expertise (COEs) 26Understand business needs and produce competitive HR solutionsMaintain awareness of market trends, best practices and leading edge programsTailor HR, rewards and talent management programs, policies, processes, and practicesDriving a Customer-Centric Employee Experience Through HR Shared Services

HR SH ARED SERVICES STUDYConclusion (Continued)HR Business Partners Partner with business leaders to develop and drive human capital strategiesProvide ongoing strategic advisory support to leadersTranslate business needs into HR requirements and evaluate services delivered tothe businessModel-Specific HR Roles Depending on the need, provide “delivery” of HR including face to- face support foremployees and managersDepending on the need, provide local, high-touch services where an on-sitepresence is necessaryHR Operations Provide employee-facing support and administration of HR programs andprocesses via HR shared services teamsRationalize and manage HRIS infrastructureIntegrate and optimize processesDrive efficiencies through standardization of transaction processingWe see the adoption of HR shared services as a clear strategic imperative that willcontinue to play a critical role in enabling and driving transformation.Delivering consumer-grade services and tools to employees not only reducesfrustration, but also improves employee engagement. Moreover, effective deliveryof shared services has the potential to enhance the attraction and retention of toptalent by allowing HR to focus on talent and leadership development, which ultimatelycreates an environment and culture where employees are fully engaged to do theirbest work.27Driving a Customer-Centric Employee Experience Through HR Shared Services

HR SH ARED SERVICES STUDYSurvey DemographicsStages of ImplementationOf the 80 companies that responded to the survey, nearly three-quarters (70% of allrespondents) have rolled out shared services, with 30% reporting their solutions arefully deployed and mature and 40% saying theirs are fully deployed, but not yet mature.The other 30% of respondents indicated that they are still rolling out their solutions.Countries of OperationThe vast majority of those surveyed (80% of all respondents) report having operationsin more than one country, with the following distribution:18%18%2-10 Countries11-30 Countries35%9%31-100 CountriesMore than 100 CountriesGeographic DistributionOur survey respondents come from a diverse group of organizations with employeesin all global regions and industries. Half of all represented workers are located in NorthAmerica, while 21% are in Asia, 18% in Europe, 5% in South America, 3% in Australia,and 2% in Africa.28Driving a Customer-Centric Employee Experience Through HR Shared Services

HR SH ARED SERVICES STUDYSurvey Demographics (Continued)R evenueN umber of E mployeesParticipants from the entire spectrum of revenue sizes tookOrganizations of all sizes participated in this study withpart in this study. Revenue amounts ranged from underparticipants evenly distributed among the different 1 Billion (12%) to more than 100 Billion (6%)employee count categories1% Other6% Over 100B12 33 141061t 11 22 201381016t12% Lessthan 1B10% 50B– 100B10% 20B– 50B10% 60,000–100,000I h nal Services9%Mining, Oil, and umer Products4%Retail3%Technology Hardware2%Education1%29Driving a Customer-Centric Employee Experience Through HR Shared Services22% 5,000–10,0008% 40,000–60,00013% 20,000–40,00014% 5B– 10Bthan 5,00016% Greaterthan 100,00033% 1B– 5B14% 10B– 20B11% LessRespondents came from every major industry withManufacturing being the most highly represented industryat 25%, followed by Finance/Insurance (16%) andHealth Care (12%).20% 10,000–20,000

ContactsTom FriedrichPartnerHR & Talent Advisory U.S.tom.friedrich@kincentric.comMichael MartinPartnerHR & Talent Advisory Global Practice Leadermichael.martin@kincentric.comMatt RoseDirectorHR & Talent Advisory U.S.matt.rose@aonhewitt.comKincentricJennifer G. WichPartnerHR & Talent Advisory U.S.jennifer.wich@kincentric.comContact us to talk about how we can help.About KincentricKincentric, a Spencer Stuart company, approacheshuman capital differently – we help you identifywhat drives your people, so they can drive yourbusiness. Our decades of expertise in cultureand engagement, leadership assessment anddevelopment, and HR and talent advisory servicesenable us to help organizations change fromthe inside. Our global network,

driver behind implementing an HR shared services model. Organizations are placing greater trust in HR shared services to handle complex administrative processes. Despite the growth in global business services, the majority of organizations continue to maintain HR shared services as a stand-alone function.