HR Shared Services and Employee Relations

As shared services continue to expand their scope of work, leaders are seeing tremendous opportunities for HR services to integrate activities like employee relations. SSON Research & Analytics data confirms this, with 17% of shared services planning to bring HR into scope this year.

In order to dive deeper into how shared services can show its value by taking on HR, SSONext welcomed Simon Brown, an HR services expert with decades of experience. 

Where HR should be positioned in 2023

In 2023, HR teams should be positioned in a centralized manner, especially for larger organizations with a global presence. The trend is to move towards centralized employee relations, where employees can find information for themselves online, similar to how they find information on Google or Amazon. This shift reduces the need for a localized HR presence and allows HR professionals to focus on more strategic activities.

The use of technolog is seen as an efficient way to handle HR processes and employee relations. The experience during the COVID-19 pandemic, where even local HR teams had to work remotely, has demonstrated that remote HR support can be effective regardless of the physical location.

In his explanation Simon made a comparison to the banking industry, where traditional local branches have been replaced by centralized service functions and online banking. This analogy suggests that HR teams can also benefit from centralization and leverage technology to provide efficient and effective services to employees across different locations. 

How Technology Will Impact the Future of HR Shared Services

New technology, such as chatbot technology and AI capabilities, is changing HR shared services by improving the employee experience and providing more efficient support. The use of chatbot technology and AI allows for dialogue and interaction with employees, addressing their questions and providing follow-up information. This technology can be integrated into internal knowledge platforms, enabling employees to easily access the information they need.

The focus on improving the employee experience is key in shared services, and technology can play a significant role in achieving that goal. By centralizing certain aspects of employee relations, such as individual employee inquiries, HR teams can leverage technology and chatbot capabilities to provide timely and accurate responses. The chatbot or centralized system can be equipped with relevant information about policies, procedures, and employment law updates, enabling effective communication with employees.

However, there are certain aspects of employee relations that may still require a localized approach. For collective employee relations matters, such as those involving trade unions or works councils, a different approach is necessary. In countries where works councils exist and have legal recognition, local HR teams or HR business partners would handle those matters. This ensures compliance with legal requirements and facilitates dialogue between management and works council representatives.

By separating collective employee relations and individual employee relations, HR shared services can optimize their operations. Individual employee relations can be handled centrally, either through technology or human advisors equipped with the necessary knowledge. This allows employees and managers to access information easily and have their questions addressed efficiently. 

Prefer the audio medium? Check out the full episode with Simon on Spotify or Apple Music.