Agenda

• Introduction
• About the survey
• Survey highlights by topic
• Summary
• How to participate in the next cycle

About the Survey

Survey Project and Timeline

• Identified gap in HRSS benchmarking data specific to service center and COE staffing and metrics
• Engaged APQC to conduct study; ScottMadden-designed questions
• Leveraged APQC’s benchmarking methodology and member network
• Conducted first cycle in Fall 2011
• Conducted second cycle in Fall 2012

Survey Target Audience

• S. or North American HR shared services organizations that include a service center and centers of expertise

Polling Question

How mature is your shared services model? (choose one)

• We do not have a shared services model
• Planning to implement – in planning stages
• Less than 2 years
• Between 2 and 5 years
• Greater than 5 years

About the Survey

Survey scope covers four major areas delivery model and operations, staffing, performance, SSO management infrastructure and technology

Participant Overview

• Participation was fairly balanced across maturity levels and industries
• More than half of the participants came from companies with more than $5 billion in revenues

Survey Highlights-Delivery Model & Operations (Global)

• A variety of global models exist; two-thirds indicate a global business services model

Survey Highlights-Delivery Model & Operations (Org Structure)

• A tiered approach continues to be the most common for service center staffing
• Use of a tiered model does not appear related to SSO maturity

Survey Highlights-Delivery Model & Operations

Typical scope items reported were not surprising…

Survey Highlights-Delivery Model & Operations (Centers of Expertise (CEOs))

Talent acquisition and talent management COEs generally show higher staffing levels

Location of staff across COEs

• Compensation and benefits COEs are most often co-located with other COEs

Degree of staff co-location within COEs

• Mixed models are in place
• Talent acquisition and employee and labor relation COEs are more likely to have virtual staff

Survey Highlights-Delivery Model & Operations (Field HR)

• While not commonly considered a part of SSOs, field HR is important to overall delivery model
• Most respondents have multiple position types in their field HR organization

Survey Highlights- Staffing (Service Centers)

• Median service center staffing reflects relatively high service center staff (not aligned with traditional 1:1000 ratio)
• Tier 2 staffing levels are high than Tier 1
  • Reflects shift to higher value services and increased use of self-service

Survey Highlights-Staffing (Span of Control)

As seen last year, broader spans of control exist for Tier 1 staff than Tier 2 staff

Survey Highlights- Staffing (Service Center Specialists)

Median staffing ratios for service center specialists show more staff focused on employee relations or workforce administration activities

Survey Highlights-Performance

• Performance by model diffrees on key service center metrics
  • Tiered models have better Average Speed to Answer
  • Non-tiered models achieve higher First Contact Resolution

Survey Highlights- Performance (productivity)

Top performing service centers are able to handle almost five times as many transactions and almost six times as many calls as bottom performers

Survey Highlights- Performance (Cost)

Top performing service centers’ cost per employee served is less than a quarter of that of bottom performing centers

Survey Highlights- Performance (Talent Acquisition Activities)

SSO productivity on recruiting and staffing activities shows wide variation

Survey Highlights-SSO Management Infrastructure and Technology

• Despite 85% of respondents having shared services in place for multiple functions, over three quarters report into an HR executive
• SLA use shows less formal approaches are becoming more common
• Fewer are using charge-backs for services
• For portals, the majority of top performers in portal volume have portals with personalized content and full-system integration

Summary-Overall Findings

• A tiered delivery model continues to be most common for HR service centers
• SSO staffing is higher for tier 2 specialists versus tier 1 generalists due to a shift to higher value services and increased use of portals and self-service
• Governance of the HR SSO by an HR executive is most common
• Some elements of traditional SSO management infrastructure are showing lower adoption
• Top performing SSOs continue to achieve significant efficiency gains and cost performance

Summary- Top Performer Characteristics

While not conclusive, top performers across key metrics had these characteristics:

• Use a tiered delivery model
• Are more mature (most with 3 or more years of maturity)
• Are governed by a lead HR executive
• Are part of a global SSO