Have you ever wondered how the HR service center (HRSC) interacts with the Centers of Expertise (CoEs) in other companies? Shared services literature and consultants will advise that in a best practice HR service delivery model, the CoEs and the HRSC stay closely in sync with the development, execution, and support of HR programs and processes. But what happens in real life? How do the channels work effectively together?
The primary roles of the CoE in HR service delivery include program ownership, policy and process development and oversight, and vendor management. The HRSC is primarily responsible for executing established policies and processes, escalating complex issues to the CoE for assistance with resolution. The HRSC provides support to employees, managers, and HR professionals through a service center organization using case management. It is clear that these two entities are inter-dependent to achieve programmatic success; however, there can be logistical and performance-related bumps along the road that can derail the relationship. How do today’s successful companies make it work?
Using ScottMadden’s proprietary HR service delivery data, we explored the “real” working relationship between the HRSC and the CoEs. Sixty-five percent of our sample considers
Only 41 percent of our sample CoE population has actionable and accountable service level agreements (SLAs) with the HRSCs. Effective service delivery is a two-way street. If you recall the old adage “garbage in, garbage out”, this often rings true with the information that is delivered to an HRSC. It is critical that the CoEs establish accountability for their components of a process to ensure information is accurate, delivered in a timely fashion, and viewed as part of an end-to-end service that is provided to the ultimate customer.
For the 24 percent of the sample organizations where the HRSC or the CoE is not leveraging the case management system to track cases through to closure, there is a risk that service is not delivered within the expected timeframe, or in some cases, at all, ultimately causing the customer to suffer. Without a structured mechanism for tracking the case, documenting the actions taken or the response provided to the customer, and monitoring overall service delivery, the organization is missing an opportunity to maximize the HRSC and CoE relationship, and therefore, the shared services model.
Occasionally, system constraints do not provide the option for CoEs to manage their own content; however, 76 percent of our sample companies ensure that CoEs are accountable for their content in the HRSC knowledgebase. The
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Centers of Excellence (COEs) have become an increasingly popular strategy for elevating HR practices and driving organizational success in recent years. But what exactly are Centers of Excellence in the context of Human Resources and how can they benefit organizations? This comprehensive guide will explain everything you need to know.
A Center of Excellence (COE) refers to a team or department within an HR function that specializes in and focuses solely on a particular HR capability or process.
For instance, an organization could have Centers of Excellence for areas like:
- Talent acquisition
- Learning and development
- Compensation and benefits
- HR analytics
- Employee relations
The goal is to centralize expertise, best practices, tools and resources related to specific HR capabilities in order to achieve excellence in those domains.
COEs in HR aim to promote standardization, consistency, and continuous improvement of HR processes. They also foster collaboration and knowledge sharing on specialized topics across the HR function and wider business.
The Benefits of Establishing HR Centers of Excellence
Implementing Centers of Excellence offers numerous potential advantages:
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Enhanced quality and efficiency – By dedicating specialized teams to focus on specific process areas, HR can improve quality assurance, optimize operations, and deliver excellence.
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Continuous improvement – COEs stay on top of latest trends, innovations and best practices, fostering a culture of learning and evolution.
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Scalability – COEs allow organizations to scale HR capabilities quickly as needs change.
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Consistency – COEs standardize processes and provide a “single source of truth”, enhancing consistency across locations.
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Strategic alignment – COEs help align HR strategy and priorities with wider business objectives.
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Specialized expertise – COEs let HR build specialized capabilities and leverage Subject Matter Experts efficiently.
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Knowledge sharing – COEs facilitate collaboration and knowledge exchange within HR and across the business.
Key Features and Responsibilities of HR Centers of Excellence
Centers of Excellence in HR have the following typical features and responsibilities:
- Focused on a specific HR capability or process area.
- Staffed by a dedicated team of specialists in that capability.
- Led by a head with deep expertise in the COE’s focus area.
- Align strategies, services and tools with business needs.
- Set standards and best practices for their process area.
- Provide consulting and shared services on their capability.
- Maintain knowledge management systems and communities.
- Identify innovations and continuously improve.
- Use technology, analytics and automation to optimize operations.
- Report on progress metrics and demonstrate business impact.
Examples of HR Centers of Excellence
Some common examples of Centers of Excellence within HR functions include:
Talent Acquisition COE
Focuses on attracting, assessing and hiring the best talent through optimized, standardized processes. Can manage campus hiring, lateral hiring, staffing vendors, and establishing an employer brand.
Learning COE
Designs and delivers training programs, leadership development, career development, and talent mobility programs that align to business goals. Manages learning management systems and tools.
Total Rewards COE
Develops compensation, benefits, recognition and career support programs to attract and retain top talent. Optimizes rewards budgets and ensures legal compliance.
HR Analytics COE
Leverages data and analytics to generate HR metrics and insights that inform strategy and decision making across HR and the business.
Diversity & Inclusion COE
Champions diversity and inclusion practices across organizational culture, policies, hiring, leadership and employee engagement.
Key Factors for Successfully Implementing an HR Center of Excellence
If you’re considering establishing Centers of Excellence, keep these success factors in mind:
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Executive support – Get buy-in from leadership and secure adequate budget and resources.
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Talent management – Recruit skilled talent and leaders to build effective COEs.
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Change management – Clearly communicate the purpose and get stakeholder/employee buy-in across HR.
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Governance – Define the mission, scope, metrics, processes, structure and accountabilities.
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Technology – Equip COEs with systems and tools to manage data, provide services and optimize processes.
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Knowledge sharing – Create centralized systems to capture expertise and foster collaboration.
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Continuous improvement – Build in processes for regular feedback collection, audits and enhancement of capabilities.
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Shared services – Enable COEs to deliver excellent shared services across business units and regions.
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Team development – Invest in developing skills and capabilities within COE teams.
An Agile Approach to HR Centers of Excellence
Given today’s dynamic business environment, some organizations are taking an agile approach to establishing and evolving their HR Centers of Excellence:
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Launching COEs as “minimally viable products” (MVPs) focused on the most critical pain points and capabilities.
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Continuously testing and learning from smaller pilot COEs before scaling them across the organization.
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Using cross-functional squads and agile software development methods within COEs.
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Frequently collecting user feedback, iterating and enhancing COE tools/services based on that feedback.
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Adding or sunsetting COEs as business needs and HR priorities shift.
This agile COE model allows HR functions to flexibly adapt and continuously improve their Centers of Excellence.
Centers of Excellence present an exciting opportunity for HR to elevate the quality, efficiency and strategic impact of people management across today’s evolving organizations.
As HR teams strive for operational excellence and strategic influence, COEs will become even more critical. The future points towards wide adoption of Centers of Excellence across HR functions, with a focus on agility, analytics and customer-centric services.
By leveraging COEs, HR can truly transform into an insight-driven function that powers business performance through people and culture. The journey requires commitment but the rewards can be immense, both for HR’s capacity and for overall organizational success.
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What is a center of Excellence in HR?
The centers of excellence (COE) in HR are best practices to support a company or organization’s mission, goals and priorities. Typically, during this process, a group of HR professionals works together to provide company employees with positive experiences. The employees they address may work internally or externally for their business.
What are HR centers of Excellence (HR Coes)?
Organizations can accomplish these objectives with the help of strategic assets called Human Resources Centers of Excellence (HR COEs). HR COEs are essential in addressing complex business challenges and promoting organizational success because of their expertise in providing innovative HR services and solutions. The advantages of HR COE
What is a center of Excellence (COE)?
By adhering to established standards and protocols, HR departments can mitigate risks, improve operational efficiency, and enhance the overall effectiveness of HR services and programs. In conclusion, Centers of Excellence (COEs) play a vital role in advancing HR practices and driving organizational success.
What are the benefits of a center of Excellence?
Many benefits come from having a center of excellence. They can add value to organizations in numerous ways across all business units due to their specialized subject matter expertise and operational agility.
