Case Study: HR Service Delivery Model Assessment and Insourcing
ScottMadden worked with an energy client to assess its HR service delivery model and evaluate the option to insource benefits administration from the current outsourcer.
The company's HR service delivery model consisted of centralized and decentralized components, which resulted in duplication of effort and lack of coordination
Benefits administration was outsourced by HR
uService delivery costs, including labor, overhead, and vendor costs, were high
Built a business case for moving to a best practices HR service delivery model and defined the scope of services for an employee service center
Assessed technology needs and evaluated potential vendors
uFacilitated the transition of services from the outsourcing vendor to the internal organization
uDeveloped a change management plan to address changes in job responsibilities for both HR and field staff as a result of the implementation
uOutlined a strategy for performance management including the regular use of metrics
uDeveloped service level agreements with customer groups and IT for ongoing support
uAchieved a successful launch on schedule
uImproved customer satisfaction through better response times and personalized service
uReduced outsourcing costs providing short-term annual savings of approximately $250,000, with a potential for greater savings in future phases