What is the degree of centralisation and standardisation within the HR Function?
Local Teams
Service Centre
Positioning
Factors
Outsourcing is :
The range of services outsourced
The stability and maturity of these services
How well the relationship with the suppliers is managed
Progression
A Shared Services approach has the obvious attraction of efficiency if the organisation is sufficiently large and if automation is in place or being put in to support it. However, where local Business Units are used to having a high degree of autonomy it can be right to leave these units to manage their own staff day-to-day. The range of Shared Services should be a pragmatic decision based on whether the cost and quality of services that can be delivered centrally is a worthwhile improvement. The nature of the Organisation will set the tone for what HR elements are most important or most used. It should also be noted that HR Shared Services are often only implemented at the time that Finance, IT and/or other Back Office services are being centralised and standardised in a similar manner.