The Next Frontier in Shared Services | The HR Tech Weekly®

The Next Frontier in Shared Services

For anyone who’s answered an email or text from a project team member on a weekend (and that’s just about all of us), it comes as no surprise that digitization has profoundly disrupted the way we work. However, this “new normal” of always-on, instantaneous communication among networks of teams is now dovetailing with another force that is equally as disruptive: a changing workforce, led by increasing numbers of Millennials. Together, these forces are impacting the service delivery landscape and calling upon the HR shared services organization to engage with employees via digital tools, often in entirely new ways.

A digital employee experience is no longer optional; it’s a necessary survival skill for those seeking to attract, retain, and facilitate engagement with the next-generation workforce. At a recent Deloitte workshop, we explored what makes Millennials different, (backed by the findings of the 2016 Deloitte Millennial Survey), along with strategies for meeting their elevated expectations. Among the characteristics put forth at the event, Millennials:

·      Are digitally native, and, by and large, they would rather use their phones for text or email than talk to people.

·      Expect “consumer-grade” experiences.

·      Tend to shun purely financial motivations, as they feel employee satisfaction and treating people well are the most important values in terms of long-term business success.

·      Crave leadership opportunities, with only 28 percent of the respondents in the Deloitte Millennial Survey believing their organizations make full use of their skills.

·      Expect to have mentors bring them up in the firm.

·      May have little, if any, loyalty to companies and may leave quickly if they believe their leadership skills are not being developed or if the company puts financial performance above everything else.

So, what does this mean for HR shared services? Nearly every company today, but especially those in traditional industries such as mining, manufacturing, and energy & resources, must find a way to replace growing numbers of retirees by attracting Millennials and elevating them to leadership roles quickly. This path toward reinvigorating the workforce by engaging Millennials runs directly through HR.

To attract and retain next-generation employees, HR organizations increasingly must deliver consumer-grade services through shared services by adopting digital tools and making the cultural adjustments required to leverage them fully. Many service delivery organizations have started to do this by transforming their contact centers, mainly by moving toward web self-help, email, and mobile channels to address simple inquiries, and reserving voice channels for answering more difficult questions. This makes sense given Millennials’ resistance to talking live, although the electronic component of these interactions has to be customer friendly. The technology has to work, without too much clicking or form-filling, or Millennials might move on—abandoning the interaction, and if the dissatisfaction persists, perhaps abandoning the employer altogether.

The strategic importance of digitizing the contact center was further emphasized in the findings of the 2015 Deloitte Contact Center Survey. Of note, 85 percent of organizations surveyed view the customer experience provided through their contact centers as a competitive differentiator, and half (50 percent) believe the contact center plays a primary role in customer retention.

While many HR shared services organizations are in tune with the engagement challenges next-generation workers pose, Millennials aren’t the only game in town. Baby Boomers and Gen Xers still must be served, and their customer satisfaction ratings are also important. While Millennials may view texting as a genuine form of human engagement, older groups largely do not. They want to talk to someone, and they view personal interactions as a preferred, and largely more effective way to solve problems, particularly complex ones.

Serving the needs of a multigenerational workforce today requires organizations to introduce digital employee experience tools, especially those that promote self-service and collaboration, while preserving existing voice-channel capabilities, at least in some situations. However, maintaining multiple platforms can be expensive and cumbersome, and stranding existing IT investments is rarely an option.

This has left many HR services organizations overwhelmed by the magnitude of technological change that stands before them. That’s why it’s important to take small steps instead of big leaps. For some organizations, implementing a cloud-based platform might be one of those incremental steps. Far from being just another portal, some of these platforms allow subscribers to develop, run, and manage shared services applications without the complexity of building and maintaining infrastructure and underlying technologies. In evaluating such a platform, the technology at a minimum should:

·      Deliver a consumer-grade user experience

·      Streamline processes and automate workflow

·      Simplify transactions by providing personalized content and context

·      Increase effectiveness and decrease cost for shared services operations

·      Make employee interactions and communication with HR simple and intuitive

Regardless of what technologies you choose, an improved digital employee experience is the next frontier in shared services. The overarching objective is to create a digital workplace that capitalizes on a company’s current technology investments by bringing disparate systems together and providing a personalized journey through shared services processes and related content via guided interactions. Why is this so important? Millennials expect nothing less. Your shared services center has to deliver high quality services or the next-generation workforce may gravitate to an organization that can.

For more insights about current HR topics, visit the HR Times Blog.

About the Authors:

Michael Gretczko is a principal with Deloitte Consulting LLP and the practice leader for Digital HR & Innovation. He focuses on helping clients fundamentally change how they operate, often working with large, complex, global organizations to guide transformation programs that enable HR organizations to reinvent the way they leverage digital to improve the employee experience and business performance.

Marc Solow is a director in Deloitte Consulting LLP and responsible for leading Deloitte’s HR Shared Services market offering in the United States. Marc has led the consulting services in support of several global HR transformation, shared services, and outsourcing projects for large and complex clients in a variety of industries, including insurance, health care, life sciences, consumer and industrial products, and energy.

Copyright © 2017 Deloitte Development LLC. All rights reserved.


Source: The next frontier in shared services | Michael Gretczko | Pulse | LinkedIn

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What Does the Future Hold for Global Payroll?

Written by Jan Van Mol, Head of Global Alliances at SD Worx.

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Businesses are always looking for new ways to improve and innovate, and the payroll industry is no different. Payroll is arguably the purest form of HR data, providing employers with real-time information that can inform a more intelligence-led approach to business decision-making. Payroll systems that deliver insight as well as a good service for both employers and employees will undoubtedly gain long-term business intuition. Because of this, forward thinking organisations need to embrace a payroll system that can provide an optimum payroll service for employees across all departments and local market. Investing in a global payroll system that encompasses the individual needs of an organisation is the answer, but how can global payroll providers ensure that multinational businesses comply with all in-country legislations?

Retaining talent and providing the best service for employees is paramount for business leaders – something that has been fueled largely by the advent of new HR technologies. Studies show that if employees are not being paid correctly and on time, the knock-on effect on retention is significant. Employers that do not harness the benefits of global payroll will consequently fall behind in the competitive race, with business penalties spanning the short and long term.

With an increasing number of business leaders starting to understand the benefits that can be reaped from investing in global payroll, how can we expect global payroll to progress in the future? Below are three industry predictions:

1. Improved Employee Engagement

With Generation Z about to enter the workforce, businesses need to look ahead and think seriously about how to cater to the needs and requirements of these digital natives – and that includes playing to their payroll preferences. Generation Z grew up with technology, is comfortable using it, and has come to expect it in the workplace. If businesses can’t cater to these needs, they will struggle to retain the best talent within this workforce bracket.

SD Worx expects to see an increasing number of built-in employee engagement functions within global payroll systems over the coming year, which will include functionalities that improve and enhance the employee experience. These functionalities will be tailored to their users – self-service and user-friendly tools for Generation Zs and Millennials, for example. There will also be an increase in measurement and reporting tools that enable close monitoring of workforce experiences in a way that can then be acted upon to boost employee engagement.

2. Deeper HR Integration

Forward thinking organisations will begin to integrate payroll with wider reward and recognition benefits to create a single, comprehensive system. With the line between work and home life becoming increasingly blurred amidst the ‘always-on’ culture, businesses need to ensure that they have the right technologies and systems in place to help combat this and deliver positive workforce experiences. Payroll systems that incorporate add-on rewards and wellbeing benefits will therefore become increasingly commonplace in coming years.

3. More Data-Driven Predictions

As mentioned above, modern payroll systems now provide much more than a monthly back office function – with the right solution, they can deliver on-going business critical insight into an organisation. The desire for global business insight is increasing year-on-year, and if managed in an optimal, systemised way, accurate payroll data will increasingly begin to provide the source of this much sought after visibility. When combined with other data sets such as employee performance and talent management, the collective insight this delivers can enable business leaders to act upon information in a reactive way, but also in a predictive context to support future planning. Key examples include being able to better identify employee attrition and absence patterns in order to correctly forecast recruiting needs and save costs.

Global payroll providers not only ensure that employers are complying with global legislations, they also guarantee that local requirements are met too. Local legislation frequently changes – like Australia adopting Single Touch Payroll this year, for example – and many large organisations have already been the target of fines due to breaking compliance with local payroll requirements. Every country had different regulations, and it is the job of a global payroll provider to tailor their offering with the needs of each organisation.

The future is often uncertain at times, but global payroll with local capabilities can improve forecasting and planning, giving the business a strong and more insight-led direction. It is clear that the growing trend for global payroll with local capabilities will remain a key business requirement as businesses expand internationally and the world becomes ever more globalised.


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