APQC Webinar Series
ScottMadden recently partnered with APQC for a complimentary three-part webinar series focused on shared services.
This webinar session, presented by Karen Hilton and Scott Manning, partners at ScottMadden, provided highlights from ScottMadden’s second annual Human Resources Shared Services (HRSS) benchmarking study conducted with APQC. This webinar showcased how the industry performs on key metrics related to staffing levels, costs, operating models, and service center performance, and it provided insights about the participants’ practices and scope of services. ScottMadden also covered trends related to the HRSS scope and use of self-service and technology as well as the organization and alignment of centers of expertise.
For more in this series, please see:
Next Generation Shared Services Centers
The Fundamentals of Designing, Building, & Implementing a Service Delivery Center
View More
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
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