Benchmarking the trends of HR shared services (HRSS)

1. Benchmarking the trends of HR shared services (HRSS) The past decade has seen HR transforming to establish functional business practices through effectively deploying HR shared service (HRSS). HRSS leverages the capabilities of HR by centralizing back-end and transactional work. It establishes a common link to interact and share critical data, enabling cross-functionality within the organization. HRSS standardizes performance and quality, empowering better customer engagement. As per a report by Grand View research, the market for shared services is expected to reach nearly 75,000 by 2022. Shared services in HR covers a diverse range of services that are integrated and accessed through common user systems. Administrative processes in HR including payroll, recruitment, benefits and compensations, leave and absence, etc. can be collectively accessed and processed through a unified system (HR shared systems) along with the added benefits of consulting services and information support systems.

2. The demand for providing comprehensive HR services has only been increasing throughout the years. With HR accustoming itself to the changing demands of the industry, it becomes inevitable to dodge the impact of the future trends. Below are some of the trends that are currently influencing the shared service market for HR. 1 HR is no exception when it comes to leveraging the advancements in technology. From process automation to cognitive computing, HR has been actively engaging in the evolution of technology. The same is the case with HRSS, from its inception till now, the transition has been tremendous and the market value it holds today is a result of the marvels of technology that has been influencing it. Thanks to the digitalized environment we live in, it has become easier to access and maintain data through interactive information systems and HR is already quickly adapting to this digital phase. 2 3 Innovations in technology Emphasis on employee engagement Businesses now are centralizing operations to focus more towards employee engagement and individual performance. With the generation traits changing, their expectations too vary. Around the corner, we have Gen Z ready to enter the workforce – they are named the true digital natives. It becomes crucial to engage them and extract the most out of their capabilities. Through HRSS, personalized experiences can be delivered to each employee, and with no doubt, each talent management solution is a reflection of the organization’s capability to deliver outstanding business performance. 4 Advancements in HR analytics Going global Maximizing the capabilities to perform advanced analytics has always been on the agenda for HR leaders. Today, there are numerous option and skills available to perform analytics effectively, HRSS is also one of them. The centralized user system enables managers and HR leads to gain essential insights into employee activities and process efficiency. HR analytics plays a vital role in strategizing business performance and enhance the search for future opportunities to increase productivity. A lot of companies have started to attain the MNC status by establishing their footprints across multiple geographies. As globalization starts to impact an organization, the need to cater to different commercial and cultural backgrounds becomes essential for HR teams. Global payroll processing and monitoring currency variations also become critical. This need has led to the emergence of global shared services that make communication and interaction within discrete units of an organization easier. 02 The roles and responsibilities of HR are constantly increasing and so is the need to streamline processes. It becomes ideal to combine and strategize HR tasks (wherever possible). The emergence of shared services is proving to beneficial and with the new trends shaping the functionalities of HRSS, it is forecasted that the trend of shared services in only going to increase and make tasks around HR and talent management more efficient.