The Unicorn HRO Blog

Shared Services HR – Rethink HR

Posted Monday, February 06, 2012 by Unicorn HRO

It doesn't take a genius to realize how important human resources are to a company.  With so many different responsibilities, the HR department handles a lot.  In recent years, however, many organizations have started to shift from traditional HR to shared services HR.  The process is fairly simple to understand, and shared services HR brings about a number of different benefits that most may not realize exist.  If you're looking at ways to improve your HR department or even just to start one up if you're a new business, then taking a good look at shared services HR may help lead you to a solution you haven't thought about.  While it got its start in the public sector, many private businesses have discovered that shared services HR is filled with benefits and easier to implement than they may think.

The first question you're probably asking yourself is just what shared services HR are.  Essentially, shared services HR are nothing more than the combining of HR resources and functions between multiple organizations.  Any organization connected to it will have access to the various systems and services of an HR department.  There are numerous different aspects of shared services HR, as well.  Some may feature integrated help for employees while others just focus on things like payroll.  One easy way to look at shared services HR is to think of it almost like an outsourcing option.  You invest in the system with other organizations and all of you get to use it.

There are three basic ways that shared services HR can slash your costs dramatically.  When multiple groups are paying for equipment and employees, for instance, costs are automatically lowered.  And shared services HR reduces the number of employees that will be needed overall.  Add to that the fact that accommodation costs are lowered with shared services HR and it becomes obvious that this solution offers very real benefits that you simply can't ignore.  But cost savings aren't the only thing that you'll receive by using shared services HR.

The quality that you get from shared services HR simply can't be beaten.  That's because the level of performance from shared services HR is much higher than traditional HR solutions and it's delivered with greater accuracy.  While about cost savings of 20 percent are common with shared services HR, the increase in quality is absolutely immeasurable.  To put it simply, you owe it to yourself to take a long, hard look at just what shared services HR can do for you.  In most cases you'll be able to enjoy benefits that other alternatives simply can't match.  There's a reason that so many other groups are using these solutions – they work, and they work well.

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