Remote workforces are becoming increasingly common as technology allows for more employees to work from home. However, managing a remote workforce can be tricky, as HR professionals can often feel they lack the necessary visibility into employee performance and engagement.
By implementing HR shared services, companies can establish a process by which all employees, regardless of location, are held to the same standards and expectations. Additionally, through the use of a shared services model, HR professionals can develop standardised reporting that provides 360-degree views of employee performance and productivity.
Let’s take a closer look at what HR shared services mean and how you can support your remote workforce with them.
What are HR Shared Services?
HR shared services is a business model in which human resources (HR) tasks and processes are centralised. By consolidating these services, multinational organisations and businesses with multiple regional units can often achieve cost savings, improved efficiency, and standardised services.
Typically, HR shared services are delivered by a third-party provider who is a specialist HR outsourcing company that offers a bundled service, covering all or most of the HR needs of its clients.
Benefits of HR Shared Services
Cost savings:
Using a shared services model primarily helps gain efficiency and cost savings through economies of scale.
With a managed services model, companies no longer have to pay for the salaries, benefits, and other costs associated with hiring experienced HR professionals. In addition, simplifying HR services through the managed services model also helps reduce costs.
Improved efficiency:
Outsourcing HR functions frees up resources to focus on core business tasks. Additionally, by using a single provider for all of its HR needs, a company can ensure that all of its processes are standardised and efficient.
Compliance and consistency:
HR shared services can improve compliance. By using a single provider for all of its HR needs, a company can ensure that all of its processes are aligned with any applicable laws and regulations. This can help to minimize the risk of violations and expensive penalties.
Employee engagement:
Accordingly to research by HRD (Human Resources Director) the remote workforce in Singapore reported being less productive due to limited access to tools, information, and resources. HR shared services can help overcome these challenges related to remote workforce management, and boost engagement, mental well-being, and productivity.
Challenges of HR Shared Services
While there are many benefits to be realized through the adoption of a shared services model, there are also a number of challenges that must be addressed to ensure you reap the full benefits.
- Understanding the ROI of managed shared services – Organisational leaders may not understand the real benefits of HR shared services and why it is important to prioritize these. One key issue is the need to ensure that the managed service is aligned with the company’s overall strategy and that it can be effectively integrated into the existing HR organization.
- Standardised procedures – It is also vital for businesses to ensure that the technology infrastructure is adequate or are willing to take the steps to update the infrastructure to support the needs of the shared services operation.
- Disparate compliance issues – For MNCs (multi-national companies), HR shared services are not only required to manage the remote workforce but accommodate region-specific financial taxes, labour laws, payroll, leaves, and other HR compliance issues. So it is crucial to scout out a solution that has the experience, knowledge, and expertise to deliver to your company’s needs.
HR Shared Services Best Practices
There are a few key steps that should be taken when setting up an HR shared services operation.
1. Define the business goals of your organisation
Some common HR business goals include reducing the organization’s HR costs, improving the efficiency and quality of HR services, and enhancing the employee experience.
2. Create a standardised process
For effective implementation and rollout, it is important to define the roles and responsibilities of the HR department and the entire network.
3. Define the types of services you require
HR outsourcing services include recruitment, payroll management, managing employee files, onboarding new employees, PEO/EOR secondment services, EAP (Employee Assistance Programmes), and HR analytics.
4. Prioritise technology
The right technology will help you support your remote workforce and manage your in-house teams effectively. Partner with HR shared services providers who help you implement cutting-edge technology solutions, upskill your remote workforce, and optimise your business operations.
5. Expand the scope
As the organisation matures, the HR shared services will need to expand the scope of its services to cover new geographic locations and provide new services such as PEO/ EOR services. This can bring additional benefits via global management and regional integration, which can eliminate disparate local operations.
Streamline Workforce Management with Links International
If you’re looking to support your remote workforce in Asia, Links International is a great option. As an award-winning HR outsourcing service provider and shared service centre, we have over two decades of experience in handling the comprehensive HR needs of your remote workforce across Asia.
Whether you need help with payroll, benefits, or onboarding, we can help you get set up quickly and easily. Schedule an appointment with our representatives to learn how you can streamline your HR function today!
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Links International is an industry leader in innovative HR outsourcing with services such as payroll outsourcing, visa application, PEO/EOR Secondment, outplacement, recruitment and more! Contact us for more information on how we can help leverage your HR function.