Shared Services Presentation. Next Generation HR Shared Services By Roy Del Rosario Director Global Consulting Service Nityo Infotech

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1 Shared Services Presentation Next Generation HR Shared Services By Roy Del Rosario Director Global Consulting Service Nityo Infotech

2 Agenda Introduction Current Trend of HR Services in the Region HR Shared Services and Outsourcing Variation of the development and use of HR Shared Services in the Region Creating the new Generation HR Shared Services

3 My Profile Introduction 18 years in the industry IT Consulting 13 years of Management Consulting experience mostly HR Processes and ERP implementation 5 years of Regional Management experience Evolution of HR Transformation ERP Implementation since mid 1990 s Beginning of HR Transformation in the early 2000 HR Shared Services was started to get introduce as early as 2003 Maturity comes in place around 2006

4 Global Trend on HR Transformation A study by ADP reveals that HR Transformation has gained momentum in 2003 In % of the MNC has started moving towards HR transformation and 90% in % of the respondents are having revenue of US$1B, 36% is around US$10B 50% of the respondents employ more than employees Organizational Demographic: 55 % are headquartered in EMEA, 48% in Europe, 7% in Middle east and Africa 6% in Asia Pacific

5 Regional Trend on HR Shared Services

6 HR Shared Services Center 27% in % in the late 2010 HR Generalist reporting to HR 32% in % in 2010 HR Generalist reporting to Business Units 35% in % in 2010 HR Controller 36% in % in 2010 HR Center of Excellence 50% in % in 2010 Trend on HR Structure

7 Trend on HR Structure

8 Trend on HR Shared Services The Paradigm Shift

9 Current Trend on HR Shared Services Group Generic Task and Expertise for Critical Mass 51% 61% Corporate Goals and Objectives 62% 69% Cost of Administration 77% 75% Service Quality and Time to Market Headcount and Salary 77% 76% 77% 83% Standardize Processes 80% 80%

10 HR Shared Services and Outsourcing HR Processes Most Often Outsourced 1. Employee service center 2. Employee/manager self service 3. Domestic relocation 4. Payroll 5. Expatriate administration 6. Benefits 7. Recruiting actual requirements of the President.

11 HR Shared Services and Outsourcing Processes Less Often Outsourced 1. Third-party vendor management 2. HRIT 3. Employee communications 4. Workforce analytics 5. Severance administration 6. Data records and management 7. Compensation administration 8. Policy and legal compliance 9. Training/learning

12 HR Shared Services and Outsourcing Processes Usually Retained 1. Performance management 2. M&A support 3. Organizational development 4. Labor and employee relations 5. Succession planning 6. Employee development 7. HR strategy

13 HR Shared Services and Outsourcing Shared Services: Transactional activities Processing and client service Dissemination of general information Standardised COE (Center of Expertise) Expert role Strategic partnership with the business and clients Policy design, interpretation and governance

14 Variation in the development and used Centralized Decentralized Center of Excellence of HR Shared Services Internal HR Shared Services Outsourcing Hybrid approach (Combination of Internal and Outsourced)

15 Variation in the development and used of HR Shared Services Company wide consistent policies and processes, from which standardized, automated processes can be achieved A centralized Knowledgebase Some use often extensive of employee and manager selfservice applications from a web portal Most often but not always, a single HCM software platform A call center, internal or outsourced, for fielding queries and handling other task by phone, and chat The use of outsourcing where it make sence

16 New Era for the HR Shared Services Most companies report 21 percent to 80 percent savings by switching their HR delivery mechanism to shared services. Enabling HR professionals to focus on strategic support of the organization instead of being bogged down with routine administrative requests provides even more benefits. Most companies use a combination of outsourced and in-house shared services, depending on their industry, size and other characteristics. More advanced organizations have established centers of excellence to sustain a consistent set of HR practices across an enterprise. HR shared services delivers the most benefit if the organization relies on a integrated technology platform.

17 Next Generation HR Shared Services Achieve continuous cost-saving, productivity and services gains Develop a customer service culture in shared services Enhance the status of HR shared services in your organization Extend shared services from transactional to strategic activities Improve the contribution of shared services to corporate success Take full advantage of technology to improve self-service Master the change management challenge

18 10 Prediction for the Next Genration HR Shared Services Prediction 1: The adoption of HR offshoring Prediction 2: The move to higher value services Prediction 3: The term shared services will be revised or replaced Prediction 4: More high potential staff will be attracted to shared services Prediction 5: Multi-functional centers to become the norm Prediction 6: Administrative HR processes will be co-located with other functional administrative operations Prediction 7: HR needs to redefine the role of the HR business partner Prediction 8: Outsourcing and insourcing will increasingly be seen as complementary Prediction 9: Technology-enabled virtualization will become more common Prediction 10: Self-service will grow rapidly in importance

19 Summary Continuous improvement is still the major task of most of the transformed organization Service Quality and Time to Market is the key driver for HR Transformation Business Partners are now a integral and critical part of HR Consulting is the key strategic role of HR

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