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5 Questions to Understand the True Cost of HR Service Delivery

Nov 30, 2017 HR Outsourcing

5 Questions to Understand the True Cost of HR Service Delivery

In today’s HR environment, it’s pretty much a given that global companies have embraced the benefits of cloud technologies to support the organization. But those cloud technologies also give HR the power to reassess the service delivery model, otherwise referred to as workforce administration, inclusive of HR administration, global payroll and benefits administration. The question is, have you? If you’re using the same organizational structure, resource loads and job definitions you had before, you are missing opportunities to transform work and achieve the full benefit of the cloud-based HRIT you’ve implemented.

THE CHALLENGE FOR GLOBAL ORGANIZATIONS

In a world where resources aren’t working in the same time zone, the same language, and in some cases with the same technology, organizing work becomes an impossible task. Lack of transparency frustrates even the most hands-on leaders, and working in the dark introduces unnecessary risk and increases costs to the organization.

By trading old tools and processes for an updated and integrated HR service delivery model, you have the power to help your organization decrease risk and cost, increase accuracy and efficiency, and improve the employee experience. Leveraging the cloud to do all those things requires, first and foremost, a comprehensive understanding of how HR administration, payroll and benefits administration is actually delivered across a global organization.

USING SURVEYS TO TRANSFORM WORKFORCE ADMINISTRATION

Getting an accurate view of HR service delivery is a critical step in the process of digital transformation and cost reduction. Best practice is to develop a comprehensive survey instrument that accounts for every country, division and resource. It should be attached to a person or a group of people who can interview and collect the data. This approach yields a wealth of information that cannot be gathered by just sending an e-mail request.

How do you start? The following questions can help develop a survey to understand what HR can do to improve workforce administration.

WHAT TOOLS ARE BEING USED ACROSS GLOBAL LOCATIONS?

Is HR using the same tools across the organization, or are some teams still relying on dated solutions like spreadsheets to gather headcount and payroll cost? Improving HR service delivery starts with making sure everyone is using the same tools and following the same protocols.

HOW ARE THESE TOOLS BEING USED?

Once you know what tools are being used, you need to determine if they’re being used correctly. For example, is HR properly updating the global HR system, or are they using the payroll vendor as an alternative HR system? Using tools improperly erodes the value of your global HR technology investment over time.

WHO IS USING THESE TOOLS?

To improve the employee experience, HR needs to know how to use the tools they’ve been given. If those tools are being used incorrectly, can the problem be fixed with something as simple as advanced training?

HOW IS YOUR TEAM’S TIME BEING SPENT?

Once you’ve identified the full range of tasks HR is responsible for, you should find out how much time they’re spending on them. Have the tools you’ve invested in made it possible for them to act more efficiently? Are any old processes ultimately creating more work for HR and effectively killing productivity or making it more difficult to act strategically?

WHAT BARRIERS ARE PREVENTING OPTIMAL SERVICE DELIVERY?

As you gather information, use this question to help you concentrate on the areas of highest risk. Is payroll integrated with the HCM? How does this vary by region, country and division? Holding these answers up against the comprehensive survey data will help you draw conclusions that uncover alternative models and redefine HR service delivery.

Cloud technology has the power to break through barriers, but only if it’s used strategically. For companies spread across different parts of the world, it’s imperative to learn how to leverage today’s cloud technology for HR processes in a way that will improve workforce administration, unify HCM, reduce cost and ultimately create a richer experience for all of your employees. But starting with a thorough understanding of your organization’s technology landscape and service delivery model is key.


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