News & Research: Client Successes

Case Study: HR Shared Services Design

ScottMadden worked with a not-for-profit organization to assess its HR service delivery model, design the future-state HR shared services organization, and create a business case for the implementation of an employee service center.

• HR costs had and were continuing to escalate
• The HR function was highly decentralized, leading to duplication of services and a lack of standardization of policies, procedures, and processes
• The business was spread over a large geographic area
• There was significant confusion among customers on where to turn for specific HR services
• There was a high dependency on paper processes
• A legacy HRIS system was being replaced with a top-tier application

• Conducted a detailed assessment of current-state services to gauge labor and non-labor costs, total headcount, service quality, and similar dimensions
• Designed a service delivery model for human resource services that employed centralized, shared, and decentralized components
• Defined service delivery responsibilities by each component
• Assessed current technologies and made recommendations for future technologies
• Designed the future HR shared services organization, staff sizes, and costs
• Created the business case for a future HR shared services organization

• Established a new service delivery model that is expected to achieve annual, recurring savings of $5 million
• Identified existing technologies to reuse and leverage that will decrease implementation costs significantly
• Documented baseline costs and quality metrics to track the impact of the future-state service delivery model and its implementation