Many organizations have consolidated their business functions into shared service centers, with more companies considering such a move each year. For businesses in which functions have evolved consistent processes and rules, this makes great sense. There are many examples of companies successfully building shared service centers to field customer inquiries, provide IT help desks and even manage certain financial functions where there is little or no geographical uniqueness with which to contend. Then there are HR and payroll. By its very nature, HR and payroll are inherently unique to the local legislation and customary rules of the country and its separate and distinct local legislatures – even within a country, there can be
significant local variances of regulations based on regions, provinces, states, departments, etc. So, does it make sense to try and build shared service centers for this function?
Shared service centers,
when staffed and managed appropriately, lend themselves to scalability and cost savings. Put simply, you can exercise economies of scale and do more with less. Were you able to discount time zones and languages as restrictions, the economies could be even greater. However, you need to have excellent methods for keeping shared service center resources current with local knowledge across the countries they support. This is by no means an easy task, but it is a worthwhile operation it if you are able to identify all of the right skillsets in exactly the right place and instill in your employees the values of service and customer-centricity you know differentiates your approach and is demanded by your clients.
The key to a
successful shared service center strategy is to develop and maintain excellent education and documentation of current processes and ensuring an incredible attention to detail, a sense of urgency and, most importantly, thorough and persistent professionalism. When new processes are added or the rules change, it is imperative that training be provided and belt and braces over-communication occurs so that shared service staff have the knowledge they require to perform their roles effectively and implement changes immediately and without fuss. Our clients might see a swan serenely gliding across the river, but to the diver below the hard work is apparent.
Conversely, employees and customers are always more comfortable dealing with a local contact, wanting to enjoy a degree of familiarity and personal interaction. This is basic human nature. Familiarity, and the empathy that ensues, goes a long way toward providing customer satisfaction. This approach can, however, be expensive, especially in cases where staff are dedicated, available and waiting to answer questions. The alternative to dedicated resources locally is to double or triple up individuals with multiple roles. For smaller employee populations, this can be very possible, but larger ones will inevitably face slow response times or competition for expertise due to competing priorities.
In the end, you must evaluate your own organization’s needs and cultural tolerances and weigh up the cost with the level of service you demand. Shared service support for payroll can be done well. It can be economically compelling, but to be successful, it requires diligence and professionalism.
CloudPay has worked with many companies that take a shared service approach, and we provide the systems and processes that can support their operations, no matter which direction they go. It is possible to pick and mix and run a hybrid environment; after all, there is no one-size-fits-all strategy and only a client can judge the priorities and weigh the balance. However, having a partner that is as flexible as you need and that will escort you on the journey, is a sure fire first step. We are
here to help.
