In response to your peers, provide feedback about their initial post and offer strategies for overcoming the challenges of a shared service delivery model and

Josh Discussion:

How can a shared service delivery model benefit the employees and management of an organization?

As discussed in previous modules, the role of HR today is significantly different than it once was. HR has moved beyond basic administrative functions and tasks and is now viewed as a strategic business partner, actively supporting and bolstering the organization’s competitive advantage (Noe, et al., 2023). Increasing performance and the probability of success obviously benefits all stakeholders, and a shared service delivery model is one way in which HR can fulfill obligations while helping drive improvements. This model is a way to organize and structure HR departments by their function, such as service centers, business partners, and centers of expertise or excellence (Noe, et al., 2023). 

Employees benefit from the shared service delivery model in a variety of ways. Automation of administrative functions provides faster processing of payroll and the management of benefits (Stringer, 2023). This model benefits management by allowing HR to support the retention and development of effective employees. Shared services allows HR professionals to shift the focus from clerical type duties to more strategic level processes such as talent management, culture development and planning for succession, which safeguards long term success for the organization (Stringer, 2023). A prime example of the mutual benefit of this model is in the expansion and refinement of training programs to increase employee skill or prepare them for management roles. These programs meet the needs of employees and management by providing development opportunities to employees which increases their human capital while also increasing value for the company (Noe, et al., 2023). 

What are some challenges of a shared service delivery model to the employees and management of an organization?

Despite all the obvious benefits of the shared service delivery model there are some challenges or issues that must be considered. A common challenge on the employee side is inexperience with the technology required to navigate self-service portals. Along these same lines, organizations must also be careful when operating internationally as cultural and language differences can impact the employee experience if it was created in a “one-size-fits-all” manner. Management faces the challenge of rushing into adoption of the shared services model before properly evaluating what it will require and their own readiness. Careful planning and consideration are required to assess technology infrastructure and determine if HR has the expertise needed to design, implement, and manage the shared services model or if it must be outsourced (Stringer, 2023). 

How do changes in technology affect service delivery, effectiveness, and efficiency?

Changes in technology have improved all three core categories of HRM activities, traditional, transactional and transformational. Some of the earliest technology embraced in HRM aimed to eliminate transactional tasks through automation and systems that allowed for self-service by employees (Noe, et al., 2023). This use of technology freed up time for HR to engage in traditional activities such as training or employee relations, and transformational activities like strategic redirection and cultural change (Noe, et al., 2023).  

Technology has significantly increased the quality and availability of work-related learning and development platforms. These platforms help organize training programs, track employee progress and assess the effectiveness of the training to evaluate its merits and formulate a tangible ROI (Stringer, 2023). Technology also improves efficiency of communication pathways and increases the effectiveness of feedback mechanisms. Surveys offer a way for employees to make their feelings, frustrations and suggestions known to management, but they require a tremendous amount of time for collection, analyzation and interpretation. New survey software and platforms dramatically shorten this processing time making it easier and faster to get results on employee satisfaction, engagement and attitudes towards work. Once again this benefits the employee as much as it does management and the organization. 

References

Noe, R. A., Hollenbeck, J. R., Gerhart, B. A., & Wright, P. M. (2023). Human Resource Management: Gaining a competitive advantage. McGraw Hill.

Stringer, G. (2023, August 17).  What Are HR Shared Services?. Hownow.  https://www.gethownow.com/blog/what-are-hr-shared-services

Lisa Discussion:

The Shared Service Delivery Model: Benefits, Challenges, and Technological Impacts

Benefits of a Shared Service Delivery Model

A shared service delivery model centralizes HR functions to serve multiple departments within an organization, offering several notable benefits. For employees, this model ensures consistency and quality in HR services. Standardizing processes such as payroll, benefits administration, and HR inquiries results in a more predictable and uniform experience (Dessler, 2023). At Adventist Health, centralizing HR services has streamlined processes across our clinics, leading to improved employee satisfaction due to more reliable and efficient service delivery. Additionally, the model enhances efficiency by reducing administrative burdens and wait times, as demonstrated by the implementation of our self-service portal, which has empowered employees to manage their own information and access HR services more swiftly (SHRM, 2024).

Management also benefits from the shared service model through cost efficiency and improved data management. Consolidating HR functions allows the organization to achieve economies of scale, reducing redundant operations and associated costs (Dessler, 2023). It also provides management with better data management and reporting capabilities, facilitating more informed decision-making. At Adventist Health, the centralized HR model has enabled us to gather comprehensive data on HR metrics, aiding in strategic planning and resource allocation (SHRM, 2024).

Challenges of a Shared Service Delivery Model

Despite its advantages, the shared service delivery model presents several challenges. For employees, one challenge is the potential for impersonal service. Centralized HR services may be perceived as less personalized, impacting employee satisfaction (Dessler, 2023). At Adventist Health, there have been instances where employees in remote locations experienced delays or difficulties accessing HR services, underscoring the need for continuous improvements in service accessibility and personalization (SHRM, 2024).

From a management perspective, implementing a shared service center can be complex and disruptive. The transition often requires significant changes to existing processes and systems, which can be challenging. For example, our shift to a centralized HR model involved overcoming resistance from staff accustomed to a decentralized approach. Managing this transition effectively required careful planning and communication to address concerns and ensure a smooth implementation (Dessler, 2023).

Impact of Technological Changes on Service Delivery

Technological advancements have a profound impact on HR service delivery, effectiveness, and efficiency. Automation of routine tasks, such as payroll and benefits management, enhances accuracy and reduces processing times (Dessler, 2023). At Adventist Health, we have leveraged advanced HR technologies to improve data analysis and reporting, supporting better decision-making and service quality. The introduction of our self-service portal is a prime example of how technology has streamlined HR processes, allowing employees to handle their own HR-related tasks more efficiently (SHRM, 2024).

The textbook “Human Resource Management” highlights the strategic value of HR activities and the importance of evaluating HR effectiveness through various customer satisfaction measurements (Dessler, 2023). This approach aligns with our experience, as regularly gathering feedback helps us continuously improve our shared service model. The SHRM article “5 Ways to Improve Shared Services” and the HR Shared Services video provide valuable insights into strategies for enhancing HR services, such as establishing clear service level agreements and implementing feedback mechanisms (SHRM, 2024). These strategies have been integral to our efforts at Adventist Health to address challenges and improve the effectiveness of our HR services.

In conclusion, while the shared service delivery model offers notable benefits in terms of consistency, cost efficiency, and improved data management, it also presents challenges related to service personalization and implementation. Technological advancements play a crucial role in enhancing HR service delivery, making processes more efficient and effective. Ongoing adaptation and feedback are essential to address these challenges and continuously improve the shared service model.

References

Dessler, G. (2023).  Human Resource Management (17th ed.). Pearson.

SHRM. (2024).  5 Ways to Improve Shared Services. Society for Human Resource Management. [URL]

SHRM. (2024).  7 Reasons Why Your Company Benefits from Manager and Employee Self-Service. Society for Human Resource Management. [URL]

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