Organisations use shared services as a way of organising their HR activities, typically concentrating administrative activities into a centralised and commonly shared function. The shared service model can help businesses reduce costs, avoid duplication of effort, and allow a greater focus on HR strategy. Often shared services are seen as part of Ulrich’s three-legged model, supporting strategic business partners and centres of expertise in the HR function.
This factsheet outlines how shared services work and the benefits of introducing them in an organisation. It takes a closer look at the typical tier structures and provides guidance on how to plan for and implement shared services across an organisation. Finally it highlights some considerations for HR when implementing shared services.