In our case, HR Qyzmet Shared service center is organization where routine processes of HR administration, payroll, perquisites, talent development, recruiting, HR assessment and support of non-residents are centralized and provided remotely. It gives for client companies efficiency in their work and opportunity to reduce their outlay. The main goal to SSC is to provide services by unified standards according to SLA (Service Level Agreement).
In common, SSC managing standard functions and processes that not in main activity of client companies. In HR SSC can be performed functions as HR administration, recruiting administration, payroll preparation, HR assessment, perquisites, talent development and other.
Employees don’t need additional time to adapt for working with HR SSC. One of the main goal is to reduce clients’ query processing time and to serve them in maximally short time.
HR SSC will be evaluated by all employees of client companies through a survey of employee satisfaction ratings on the following criteria: responsiveness, speed of handling appeals, politeness of the SSC employee, completeness of the information provided, simplicity and accessibility of the procedure for interaction with the SSC.
First of all, the experts of the project team meet with experts from the pilot companies to discuss the details of the company’s transfer to the service. After the mutual agreement of all contracts and the transfer of data on the processes, the project team organizes a communication session for all staff, which provides exhaustive information about the SSC. Moreover, as part of the management of changes in companies, posters with information about the SSC schedule are posted, information is sent by mail, client companies get through survey of the preparedness for changes for feedback collection and the Herald of HR SSC is published.
Each employee of HR SSC can replace any other employee in case of his absence. This ensures the continuity of the work of the center.
In HR SSC simple, routine operations are transferred. All other processes remain in the company and will be performed by local HR-managers.
The transfer of the company’s processes to HR SSC will not affect the timing of payment of salaries to employees. Since they are fixed in the SLA, therefore, ensuring the continuity of HR SSC activities is one of the basic KPI to staff.
Within the confines of the Samruk-Kazyna Fund’s Transformation Program, the human resources management function is being reorganized. Such practice is conditioned by the world trends in HR and allows to achieve several tasks. First of all, the centralization of the transaction function – the transfer of standard and routine operations to a single center, will reduce the operational costs for the content of the function. Secondly, the strengthening of a single center of expertise will enable the use of advanced knowledge in the field of HR in all companies of the Fund group.
The implementation of SSC has a number of undeniable advantages for both: companies and personnel. For pilot companies the implementation of HR SSC means an efficiency increase more than 3 times. If earlier one HR employee served 70 employees of the company, then with the appearance of HR SSC the employee will be able to serve 130 people and these indexes will grow. This change is due to the fact that if before the processes of HR in the companies of the group differed and required more time and resources for implementation, now the services will be provided through unified and standardized processes in a short time. Unification and standardization of processes provides space for continuous improvement. In terms of improving the quality of staff service, the creation of a shared service center will allow to implant the service-oriented culture in the group of companies of the Fund. Each employee of the company will acquire the status of an internal customer and will be able to receive HR-services according to unified standards. HR SSC users will remotely receive reference information, track the status of their request through SMS notifications, and also use the services of contact center in case of questions about the HR SSC operation.
When processes were transferring, the project team analyzed the components of each process – steps. Each step is an operation that is necessary to complete the process. When transferring operations to HR SSC, the project team was guided by the following principles:
- To transmit the step / set of steps in the HR SSC, there are no legal or any other explicit restrictions;
- A step is a standard operation that does not require a unique examination;
- Step can be maximally standardized for all pilot companies of the project;
- The step can be performed remotely.
Enterprises of the first wave have two common components – they are small and disposed in one location, which greatly simplifies the process of transferring employees to a new format of work.
Shared service center (SSC) is a form of organization that successfully works in West companies and it becomes popular last few years in Russia. Now Kazakhstan’s companies are ready to implement it.