HR Shared Services and the Realignment of HR

Reilly P | Report 368 | Institute for Employment Studies | Jun 2000

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Shared services is an increasingly common organisational response to creating more efficient service delivery.

This report is an in-depth look at the issues based on interviews with a number of organisations. They see that costs can be reduced through the economies of scale from centralisation of services. Increased customer focus can lead to better quality outcomes. Technology can offer various routes to user friendly delivery (eg call centres, intranets, etc.).

Choices, though, have to be made on the nature of the shared services operation and on the relationship between HR and line managers and employees. Ensuring that it is correctly resourced and organised poses another set of questions. Organisations have found benefit in this structure, but there are design issues that must first be tackled.

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