Over the years, shared service management has, out of necessity, taken center stage in organizations needing help to be lean, cost-effective, and generally efficient in their operations. Shared services involve centralizing support functions such as human resources, IT, finance, and administration into one unit serving multiple parts within an organization.
This helps reduce redundancy, enhance quality, and achieve economies of scale. It will also help you understand the basics of shared services management while focusing on best practices, employee performance management, hybrid workforce management, and providing solutions for everyday challenges.
According to research, the size of the shared services market is expected to grow between 2023 and 2028 by USD 284.68 billion, at a compound annual growth rate of 17.09%.
Read on to learn more in this guide about how shared services shall be advantageous and how their implementation shall be helpful.
Table of contents
- What are Shared Services?
- Key Benefits of Shared Services
- Best Practices for Managing Shared Services
- Managing Employees within Shared Services
- Integrating Time Tracking and Performance Management Functions in your Organization
- How Do We Manage a Hybrid Workforce Effectively?
- Shared Services Solutions
- Conclusion
What are Shared Services?
Shared services is a business model through which various business operations are consolidated and delivered centrally rather than operating within each business unit. The model becomes useful in large organizations that work from multiple departments by standardizing processes and saving money.
Key Benefits of Shared Services
- Cost Reduction: Managing shared services reduces operational costs significantly by eliminating redundancies and economies of scale.
- Uniformity: A standardized activity process ensures consistency and quality throughout the organization.
- Improved Efficiencies: Centralized management gives way to a leaner operation and the enhanced delivery of services.
- Focus on Core Activities: The business units can focus more on strategic than administrative activities.
Best Practices for Managing Shared Services
- Define Clear Objectives: The shared services model should set goals, including the scope of services, expected outcomes, and employee performance metrics.
- Open Communication: Open lines of communication should be available between the shared services unit and the business units it serves, and there will be regular feedback and updates.
- Governance Framework: Establish an appropriate governance framework to oversee the operation of shared services. This involves the formation of a steering committee that defines roles, responsibilities, and accountability.
- Tech Integration: Advanced technologies will play a huge role in automation, managing data, and delivering services. Time-tracking tools, performance management systems, and hybrid workforce management solutions can make or break.
- Continuous Improvement: Periodically review the performance of shared services and assess them to find areas for improvement. Implement changes by feedback and evolving business needs.
Managing Employees within Shared Services
The success of shared services depends on efficient employee management. Some areas of improvement in the performance and commitment of employees are as follows:
1. Performance Management
A good employee performance management system would set clear expectations around goals, monitor progress, and review a feedback process. It would also help identify high performers and highlight areas that require improvement.
2. Recognition and Rewards
Recognize and reward employees according to their contributions and accomplishments. This motivates them to work harder and perform better.
3. Employee Engagement
Create a positive environment at your workplace with various computer activities where employees drive activities collaboratively, solve issues innovatively, and practice open communication. Engage with your workforce on company-related decisions and solicit suggestions on multiple initiatives.
Integrating Time Tracking and Performance Management Functions in your Organization
The shared services management process has time tracking and performance management as its integral functions. Effective time tracking ensures that resources are spent efficiently on projects and tasks to complete them on time. Here are some best practices:
- Use an Employee Monitoring Tool: Implement time-tracking or Employee Monitoring Software like Leapmax to monitor employees’ working hours, project timelines, and spent resources. This will show productivity patterns and optimize resource use.
- Set Clear Deadlines: Set the deadlines for tasks and projects. It will help workers know their timelines and focus accordingly on priority jobs.
- Monitor Progress: Progress on any task or project should be regularly monitored. KPIs can be tracked through performance management systems, and employee performance can be measured against them.
- Give Feedback: Employees should receive constructive feedback on their performance. This will help them build on their strengths and rectify their weaknesses, resulting in better performance.
How Do We Manage a Hybrid Workforce Effectively?
In the hybrid work field, when an increasing number of employees prefer working from remote locations, handling a hybrid workforce has become a significant part of shared services. Here are some tips for managing a hybrid workforce effectively :
- Flexible Work Policies: Design flexible work policies for remote work and in-office workers. These policies should cover clearly stated work hours, communication protocols, and performance expectations.
- Technology Integration: Make technology work so that the boundaries of collaboration and communication between remote and in-office teams become seamless. This includes collaboration tools, video conferencing, pro-management software, and workforce analytics.
- Regular Check-ins: Frequently check on remote workers to keep them focused on the team’s goals and objectives. This keeps them busy, helps them overcome challenges, and makes them feel part of the team.
- Team Building Activities: Organize virtual team activities that give the remote workforce a sense of being part of the team and foster esprit de corps with other employees at the site. This builds collaboration or teamwork.
- Performance Monitoring: Track the performance of virtual workers using an employee monitoring system. They are provided with all the resources and assistance given to in-office employees.
Shared Services Solutions
The proper shared services solution must be implemented to optimize operations to achieve desired outcomes. The right solutions include:
- Automation Tools: Automation tools can be applied to mundane tasks to increase operational efficiency. This includes process automation, RPA, and AI-driven solutions.
- Data Management Systems: Use data management systems to gain access to relevant, real-time data that will help you make informed decisions and improve service delivery.
- Collaboration Platforms: Use collaboration platforms to help staff communicate and work as a team. These include Microsoft Teams, Slack, and Asana.
- Performance Management Systems: Track and evaluate the performance of employees with performance management systems. These entail goal setting, tracking progress, and feedback.
- Time Tracking Software: Time tracking system will help optimize resources and enhance employee productivity by monitoring employee working hours, project timelines, and resource allocation.
Conclusion
Effective shared services management requires a strategic approach, clear objectives, and the right tools. Best practices, robust workforce management strategies, and technology can help an organization optimize its shared services operations to achieve great cost savings and efficiency gains.
For a successful shared services model, stay current, continually improve processes, and foster a collaborative work environment. Performance tracking tools like Leapmax should be used to manage shared services, optimize operations, and improve employee productivity.
