HR Shared Services Benchmarking Study Highlights

• • ScottMadden and APQC HR Shared Services Benchmarking Study
  • July 2016

About the Survey

• • Survey Project and Timeline Identified gap in HRSS benchmarking data specific to service center and center of expertise (CoE) staffing and performance metrics Engaged APQC to conduct study; ScottMadden designed questions Leveraged APQCs benchmarking methodology and member network Conducted four cycles to date: Fall 2011 Fall 2012 Fall 2013 Winter 2014 Fall 2015 Winter 2016
  • Introduction

About the Study

• • Targeted HR shared services organizations that include a service center and CoEs Included scope covering four major areas, with a mix of qualitative and quantitative questions

• Introduction
• New questions were included this year to examine global delivery models, staffing, and performance across global regions

Metrics List

• • Total customers (employees + retirees) per total HR headcount Total company employees per HRIS headcount Total company employees per continuous improvement headcount Total company employees per talent acquisition CoE headcount Total company employees per talent management CoE headcount Total company employees per compensation CoE headcount Total company employees per benefits CoE headcount Total company employees per employee and labor relations CoE headcount Total company employees per HR business partner headcount Total company employees per HR generalist headcount Total company employees per HR administrator headcount Total company employees per field HR headcount HR service center employee turnover for North American Shared Services Center
  • Average speed to answer for North American Shared Services Center First contact resolution for North American Shared Services Center Portal hits per 1,000 employees for North American Shared Services Center Total service center cost per customer (employees + retirees) Total requisitions per North American Shared Services Center recruiting/staffing specialist headcount Total hires handled per North American Shared Services Center recruiting/staffing specialist headcount Total company employees per North American Share Services Center recruiting/staffing service center specialist headcount Total company employees per North American Shared Services Center workforce administration specialist headcount Total company employees per North American Shared Services Center training administration specialist headcount

• Introduction
• Study participants receive detailed data for the full set of metrics in the study

Metrics List (Contd)

• • Total company employees per North American Shared Services Center leave of absence administration specialist headcount Total company employees per North American Shared Services Center employee relations specialist headcount Number of transactions per service center employee Number of calls/inquiries per service center employee Number of employees served per service center employee Number of retirees served per service center employee Self-service transaction volume per employee Self-service inquiry per employee Tier 1 employees per Tier 1 manager/supervisors Transaction volume per Tier 1 employee
  • Call/inquiry volume per Tier 1 employee Tier 2 employees per Tier 2 manager/supervisors Transaction volume per Tier 2 employee Call/inquiry volume per Tier 2 employee

• Introduction

Participant Demographics

• • Our benchmark study includes data on more than 275 shared services centers from more than 100 organizations, across revenue ranges, industries, and operating maturities. The majority of this years participants come from mature shared services operations (SSOs)

• Introduction

Shared Services Center Characteristics

• • A variety of global models exist; more than 70% of the respondents that have global operations indicate a GBS model.

• Survey Highlights
• GBS Model: 72%

Shared Services Center Locations

• • Survey Highlights

Shared Services Center Global Reach

• • EMEA and Asia Pacific are both primarily served by in-region SSCs Latin America is nearly equally served by SSCs within and outside of the region

• Survey Highlights
• Customer Geographies Served by SSCs in Each Region

Delivery Model and Operations Organization Structure

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

• Survey Highlights

Delivery Model and Operations Specialist Staffing

• • Among Tier 2 specialist groups, workforce administration and recruiting and staffing groups show the highest staffing levels, while training administration and leave of absence administration groups show the lowest staffing levels

• Survey Highlights

Delivery Model and Operations CoEs

• • Almost 90% employ CoEs as part of their model Staffing levels vary by type of CoE, but talent acquisition and employee and labor relations CoEs generally show higher staffing levels relative to company employees

• Survey Highlights

Top-Performer Characteristics

• • An analysis of top performing organizations across key metrics in the study was used to identify common characteristics. Top performers Are more mature Are part of a global SSO Are governed by a lead HR executive Use a tiered approach with higher use of Tier 2 specialists Use more robust portals Use more self-service

• Summary

Overall Findings

• • A variety of global models exist; more than 70% of the respondents that have global operations indicate a GBS model. Companies with greater global integration exhibit lower service center cost and overall HR staffing North American service centers have relatively higher staffing levels but are more efficient in handling transactions and inquiries A tiered approach continues to be most common for service center staffing The use of robust portals has trended up, and self-service is the norm Top-performing SSOs continue to have better staffing ratios and are more efficient and cost effective in their operations Mature service centers are more likely to leverage the top-performer characteristics and thus reap greater benefits

• Summary

Want to Find Out How You Compare?

• • Contact us at info@www.scottmadden.com We will contact you when we begin our next cycle in spring 2017

• Summary
• There is no cost to participate All participants receive a detailed report of all metrics and qualitative results Peer group comparisons are provided where relevant