Organisations need to decide what should be centralised, what should remain local, where services should be delivered, how responsibilities should be divided, and what operating model will support the business.

A well designed HR shared services model connects people, processes, technology, governance, and service delivery. It can provide a structured foundation for transactional HR activities while allowing HR business partners and specialist teams to focus on higher value work.

The challenge is designing the model around business requirements rather than treating shared services as only a cost reduction exercise.

Typical HR shared services responsibilities can include:

• Employee data administration
• HR transactions
• Payroll administration
• Benefits administration
• Employee documentation
• HR helpdesk services
• Onboarding administration
• Reporting and standard HR requests
• Policy and process support

The exact scope depends on the organisation.

Some organisations centralise a broad range of administrative activities, while others create a more focused model around specific services.

Different teams may use different processes, systems, approval structures, and service practices for similar activities.

An HR shared services model can create greater consistency by establishing common processes and service standards.

Potential benefits include:

• Consistent service delivery
• Standardised HR processes
• Improved employee experience
• Better use of HR technology
• Clearer accountability
• Improved process visibility
• Scalable service delivery
• Better data governance

However, these benefits depend on how effectively the operating model is designed and implemented.

A useful starting point is to assess HR activities based on their level of standardisation, transaction volume, complexity, local requirements, and need for specialist judgement.

Activities that are highly repeatable and process driven are often suitable candidates.

Activities requiring significant strategic judgement or close business partnership may be better positioned elsewhere within the HR operating model.

The objective is to create clear boundaries between:

HR Shared Services → HR Centres of Expertise → HR Business Partners → Business Leaders

This prevents overlapping responsibilities and unclear ownership.

Potential candidates include:

• Employee administration
• Standard HR transactions
• HR case management
• Common reporting
• Documentation
• Onboarding administration
• Benefits administration
• Standard employee support

However, not every process should automatically be centralised.

Local legal requirements, language, cultural differences, employee relations, and market specific practices may require local ownership or controlled variation.

The right question is:

Where does centralisation create value without creating unnecessary complexity or reducing local effectiveness?

Organisations should consider:

• Talent availability
• Language capabilities
• Time zone coverage
• Labour costs
• Infrastructure
• Technology access
• Data and regulatory requirements
• Service coverage
• Business continuity
• Proximity to key employee populations

The optimal location depends on the organisation’s workforce footprint and service requirements.

A global organisation may also use multiple delivery locations to provide broader coverage and resilience.

It should establish:

People

Who performs each activity and what capabilities are required?

Process

How should HR services be delivered consistently?

Technology

Which platforms support transactions, workflows, employee requests, reporting, and automation?

Governance

Who owns decisions, policies, controls, and performance?

Service Management

How will employees and managers request services and track resolution?

These elements need to work together.

Moving processes into a central team without redesigning the underlying workflows can simply centralise inefficient processes.

HR platforms, case management systems, workflow automation, knowledge bases, analytics, and AI capabilities can reduce manual activity and improve service accessibility.

For example, employee requests can be routed through standard workflows, common information can be made available through self service, and repetitive transactions can be automated.

AI can also support areas such as employee queries, knowledge retrieval, document processing, and workflow assistance.

However, technology should follow the service model rather than define it.

Organisations should first determine what the service should look like and then identify the technology required to deliver it effectively.

Useful measures can include:

• Service resolution time
• First contact resolution
• Transaction accuracy
• Case volumes
• Employee satisfaction
• Service adoption
• Process automation
• Cost per transaction
• Compliance performance
• Service level achievement

These measures help leadership understand whether the shared services model is delivering the expected outcomes.

Cost should be one measure, not the only measure.

A lower operating cost does not necessarily indicate better service if employee experience, accuracy, compliance, or resolution times deteriorate.

1. Diagnose

Assess current HR processes, service volumes, costs, technology, and pain points.

2. Define

Establish the scope and objectives of shared services.

3. Design

Determine responsibilities across shared services, specialist teams, HR business partners, and local HR.

4. Decide

Evaluate centralisation, localisation, location, and service delivery options.

5. Enable

Implement technology, workflows, governance, and service management capabilities.

6. Transition

Move services through a controlled implementation and change programme.

7. Measure

Track service quality, employee experience, efficiency, automation, and business outcomes.

This approach creates a shared services model designed around the organisation’s future HR operating model rather than simply relocating existing activities.

It should form part of a broader HR operating model where responsibilities are deliberately distributed across service delivery teams, HR business partners, specialist functions, technology, and business leadership.

A strong model creates a clear relationship between:

Employee Needs → Shared Services → HR Expertise → Business Partnership → Business Outcomes

This allows routine services to become more scalable while HR professionals can focus on activities requiring expertise, judgement, and strategic partnership.

• HR shared services should be designed around business and employee requirements.
• Not every HR activity needs to be centralised.
• Location decisions should consider talent, coverage, compliance, technology, and resilience.
• Clear responsibilities are essential across shared services, HR business partners, and specialist teams.
• Technology and automation can improve scalability and service accessibility.
• Shared services performance should measure service quality as well as cost.
• Process redesign should happen before simply moving existing activities into a central team.
• A successful HR shared services model should form part of the broader HR operating model.