The Critical Importance of HR Service Centers: Improving EX, Efficiency, and More

Providing seamless services should be a major priority for business leaders, and central to that is HR service delivery strategy. As the global workplace continues to evolve, HR service delivery must evolve alongside it.

This article was updated to reflect new information on 06/11/2024. The gap between where employees work and where they call home is closing, and human resources (HR) service delivery is evolving as a result. According to research from Buffer, 98% of employees would like to work remotely, at least some of the time, for the rest of their careers. As such, a major shift in how businesses deliver benefits, resources, and solutions has become necessary.

Simultaneously, employees have come to expect more from their HR solutions. People no longer accept the divide between consumer technology and workplace systems. If personal smart devices are intuitive, why are so many HR tools difficult to navigate?

When it comes to meeting those expectations, HR service delivery is falling behind. This study from Leapgen shows that only 15% of enterprise and midsize organizations consistently deliver personalized digital experiences. Worse, only 25% of respondents indicated they were able to provide positive experiences through their company portal.

When HR service delivery is at its best, it’s seamless. Whether in everyday tasks or significant moments, HR service delivery is the mechanism by which employees navigate their work life. Without a personalized service delivery model, employee experience suffers.

The HR service center has become a crucial function for enabling great employee experiences (EX), operational efficiency and strategic impact. Yet many organizations still struggle to get the most out of their HR service delivery model. In this comprehensive guide, we’ll look at what HR service centers are why they matter, and how to optimize them.

What is an HR Service Center?

An HR service center is a dedicated team or unit focused on handling employee requests, transactions, and services It serves as the go-to resource for employees and managers to get assistance on HR issues and processes

Key responsibilities of the HR service center include

Fielding employee questions on policies, benefits, payroll etc.
Processing common HR transactions like new hire onboarding, promotions, leave requests
Supporting routine employee services like password resets, paperwork, approvals
Directing complex issues to HR Centers of Expertise or Business Partners
Managing knowledge base content and self-service options

The service center could be centralized for the whole company or have regional/divisional centers. It may also integrate self-service and chatbots to deflect simple inquiries. But the purpose remains consistent – act as the first point of contact for employee HR needs.

The Strategic Value of HR Service Centers

Many view service centers as just an operational function or cost center. But well-run HR service centers provide immense strategic value:

Improves EX: Quick, accurate resolution of employee requests and needs.
Enables self-service: Handles high-volume basic inquiries to free up HR staff time.
Provides insights: Identifies trends and emerging needs from employee questions.
Frees HRBPs: Allows HR Business Partners to focus on more strategic initiatives.
Drives efficiency: Streamlines transactional activities through automation and AI.
Boosts data quality: Maintains clean HR data through updates and validation.
Reduces risks: Applies policies consistently and ensures compliance.
Contains costs: Lowers HR delivery costs by optimizing staff mix and technology.

When HR service centers are elevated beyond just transactional support to truly strategic centers of excellence, they become invaluable drivers of EX, productivity, and growth.

Evolution of the HR Service Center Model

The HR service center has evolved significantly, mirroring changes in the broader HR function:

1990s-2000s: Basic shared services emerge, focusing mainly on administration, payroll, and basic inquiries.

2010s: Expansion into more value-added employee services beyond just transactions.

Now: Continued innovation through digital capabilities like artificial intelligence, automation, and analytics to provide personalized, proactive support.

Key drivers shaping the current state of HR service delivery include:

Remote/hybrid work requiring digital-first experiences
Growing employee expectations for consumer-grade experiences
Increased focus on EX, engagement, and retention
Pressures to optimize efficiency and contain HR costs
Enabling HRBPs and Centers of Expertise to operate more strategically
New technologies like AI chatbots, workflow automation, and self-service

The HR service center model will continue evolving as capabilities and employee expectations grow. Agility and innovation are critical.

Core Components of Effective HR Service Centers

How can you ensure your HR service center delivers maximum strategic impact? There are 5 core components to optimize:

1. Structure and Staffing

Have specialized teams for routine vs complex issues to balance quality and efficiency.
Enable employees to self-serve for basic queries via knowledge base and chatbots.
Hire service-minded specialists with HR expertise, communication skills, and tech savvy.
Train on soft skills like empathy, active listening, problem-solving.
Measure quality through satisfaction surveys, case audits, resolution rates.

2. Processes

Categorize inquiries to expedite routing and SLA management.
Automate repetitive tasks like new hire onboarding paperwork.
Refer complex cases to Centers of Expertise and HR Business Partners.
Continuously refine policies, scripts, and protocols to improve quality and consistency.

3. Technology

Arm staff with knowledge management system, live chat, HR system access.
Integrate HR systems and data for unified case management.
Use AI and bots for basic inquiries to improve efficiency.
Apply analytics to surface trends and fine-tune operations.
Enable employees to easily track, update, and resolve their own cases.

4. Metrics and Insights

Capture inquiry types, volumes, resolution rates to identify problem areas.
Analyze peak periods and common issues to improve staffing models.
Survey users regularly to measure satisfaction and identify service gaps.
Share insights with business partners to inform programs and investments.

5. Continuous Improvement

Solicit and act on feedback from employees and HR users.
Standardize processes without being overly rigid.
Explore emerging technologies and pilot new capabilities.
Benchmark service quality against leading practices.
Celebrate and reward excellent employee service.

Getting all components working together is key for transforming centers into true centers of excellence that create value.

Critical Steps for Improving HR Service Delivery

How can organizations evolve their HR service centers to the next level? Follow these steps:

Conduct assessments: Survey employees and HR users on current services and pain points. Examine processes and technologies for gaps. Benchmark against competitors and best practices.

Map future state: Define the desired experience for different personas and service scenarios. Outline process flows, organization structure, and capabilities needed.

Address technology gaps: Identify upgrades needed to systems, knowledge management, automation, analytics, and self-service.

Pilot new capabilities: Test changes with small groups before expanding company-wide. Iterate based on feedback.

Train and support staff: Invest in upskilling staff on digital capabilities and soft skills. Recognize and reward great service.

Market services: Encourage adoption by promoting new self-service options and proactively reaching out to users.

Measure and refine: Continuously gather feedback through surveys, audits, journey mapping. Analyze data and trends to improve.

With the right vision and disciplined approach, HR service centers can transform into true centers of excellence and strategic assets.

Impact on the Employee Experience

At the end of the day, the HR service center exists to improve the employee experience. How does excellent service delivery translate to EX?

Personalized support: Employees feel valued as more than just a number.
Quick resolution: Issues are addressed without getting the runaround.
Self-service: Employees have autonomy to easily find information themselves.
Omnichannel access: Support available through website, email, chat, phone.
Proactive communication: Employees are updated on case status without having to chase HR down.
Continuous improvements: Employee feedback shapes better services and technology.
Peace of mind: Employees gain confidence that HR needs will be handled smoothly.

With the right focus on people, an optimized HR service center transforms the experience employees have interacting with HR at pivotal moments – leading to greater engagement, productivity, and retention.

Key Takeaways

The HR service center provides immense strategic value beyond just transactions.
Continuous innovation in service delivery models is required as expectations and work models evolve.
Key components to optimize include structure, processes, technology, metrics, and improvement.
Excellent service centers dramatically elevate the employee experience and perception of HR.
Maturing centers into true centers of excellence requires vision, investment, and focus on the human experience.

The HR service center should be viewed as a vital driver of both strategic impact and employee experience – not just an operational function. By embracing this mindset and centering service design around human needs, HR leaders can transform service delivery into a key competitive advantage.

importance of hr service center

How Does Tiered Service Delivery Work?

The rise of machine learning, especially in search engines, means employees expect the information they need quickly. More than that, they expect a seamless employee experience, driven by a robust HR service delivery strategy. Data from Sapient Insights Group shows a 12% increase in key business outcomes (including market share, profitability, and customer satisfaction) when a company has an HR systems strategy versus when they do not. At the cornerstone of that strategy is a tiered approach to service delivery.

Each tier in a tiered service delivery option supports employees by directing them to the right level of assistance depending on the nature and complexity of the request. The quality of that process can have a major impact on employee satisfaction. The most common tier system model progresses as follows.

Tier 0: Self-service. This represents the first port of call for employees, where they consult the company knowledge base and virtual agents. As service delivery has evolved, what was once considered Tier 1 is now termed Tier 0. Increasingly complex requests are possible with the assistance of artificial intelligence (AI) to provide contextual and insightful responses.
Tier 1: Contact the HR service center. After self-service options have been ruled out, the next step is enabling employees to communicate with the HR service center. Usually this will be an HR generalist, and most cases will result in a first-contact solution. If an HR team member can’t resolve the request, they are well positioned to escalate the issue.
Tier 2: Escalate issue to HR specialist. If the request requires specific expertise or compliance checks, it will typically be forwarded to an HR specialist. Usually these requests will require precise actions that only an HR specialist has the permissions or business skills to complete.
Tier 3: Arrange a meeting with HR management. If a request is sensitive or could impact strategy, sometimes it’s necessary to involve an HR business partner. This could be a request centering on a personal issue or an emergency. However, few cases will reach this final tier.

By meeting your employees naturally at each step, the tiered system makes HR requests quick and easy. The more you reduce friction, the more your employees are able to work on what really matters. That’s the value of an approach to services that adapts to employee needs.

What Is HR Service Delivery?

Acronyms such as HRSD (human resources service delivery) and HRIS (human resources information system) can sometimes be confusing. HR jargon can also make it hard for your employees to understand the tools they use. Fortunately, the term “HR service delivery” contains its own definition.

HR service delivery refers to the solutions, processes, and models a company uses to deliver services to employees. Service delivery includes everything from employee benefits to career advice. This function supports the life cycles of employees (as well as contractors, freelancers, and prospective candidates) from onboarding to exit.

Service delivery affects every employee, from senior management to new hires. Regardless of the technology your business has implemented, it’s essential to evaluate your approach. The best way to properly assess the services you provide is to understand the four most common models.

HR Service Center

Why is an HR service center important?

Having an HR service center available is important for organizing, distributing and storing employee information and company policies. HR service centers monitor and maintain employee safety, morale and performance and provide employees with transparency about company policies and actions.

What is a Human Resource Service Center?

A human resource service center is an online portal or phone system that provides HR resources, administration and transactions for employees or organizations. Employees and managers can contact the center to get information about benefits, company policies, documents and reports.

What are the benefits of a Human Resource Service Center?

Human resource service centers can contribute useful systems and functions for organizations. Employees and managers can experience many benefits from having additional access to their necessary documents and policies.

What does a service center do?

A service center offers HR assistance to employees and managers when they need it, sometimes 24 hours a day. If a person has questions about his benefits, pay, a job transfer or other issues, he need not schedule an appointment to meet with an HR representative or send an email and wait for a response.