What shifting to shared services means for HR reskilling

There was a point in time when we all thought the world of business was stabilizing.

In an era of rapid technological advancement and evolving business models, organizations across industries are reimagining their operational structures. One trend gaining significant traction is the move toward shared services models, particularly within HR departments. This shift promises increased efficiency, cost savings and improved service delivery. However, it also presents a formidable challenge: How do we reskill our HR professionals to thrive in this new way of working?

Shared services models are not new to the world of HR. The focus is to consolidate common HR functions into a centralized unit, serving multiple departments or business entities within an organization. This approach typically involves:

1. Centralization of administrative tasks
2. Standardization of processes
3. Leveraging technology for self-service options
4. Focus on data-driven decision making

While the benefits are clear, the transition can be disruptive for HR professionals accustomed to traditional, decentralized HR roles. Many find their job descriptions dramatically altered, requiring a new set of skills and competencies.

The urgency of reskilling

As organizations embrace shared services, HR professionals must evolve or risk obsolescence. The World Economic Forum’s Future of Jobs Report 2023 estimates that 44% of workers’ skills will be disrupted in the next five years. For HR, this disruption is already underway. The question isn’t whether to reskill, but how to do so effectively and at scale. Organizations must develop comprehensive strategies to equip their HR workforce with the tools they need to succeed in a shared services environment.

Key areas for reskilling

One of the challenges leaders interested in developing their teams will face is knowing which skills to focus on. After all, the world of business requires any number of capabilities, and skills that are important for one industry may be irrelevant in another. Fortunately, there are some core skills that will enable a shift towards shared services, regardless of industry:

• Technology proficiency: HR professionals must become adept at using Human Resource Information Systems (HRIS), data analytics tools and AI-powered platforms. This goes beyond basic operational knowledge; it requires the ability to leverage these tools for strategic insights and process optimization.
• Data analytics and interpretation: In a shared services model, data becomes a critical asset. HR professionals need to develop skills in data analysis, visualization and interpretation to drive evidence-based decision-making.
• Process design and optimization: This is an area that is near and dear to our hearts here at IA. In fact, we would argue this is a vital skill regardless of where one sits within an organization. With standardization at the core of shared services, its importance is heightened, as HR professionals must learn to design, implement and continuously improve efficient, scalable processes.
• Customer service orientation: As HR transitions to a service provider model, professionals need to cultivate a customer-centric mindset, focusing on service level agreements, user experience and stakeholder management.
• Change management: HR professionals will need to guide their organizations through the cultural and operational shifts that come with shared services adoption. This requires strong change management skills.
• Strategic business partnering: With transactional tasks centralized, HR business partners must elevate their strategic capabilities, aligning HR initiatives with broader business objectives.

Strategies for effective reskilling

It’s one thing to highlight the areas where reskilling may have the greatest impact. It’s quite another to find cost-effective, timely and successful methods to help hard-working HR professionals learn new capabilities without impacting productivity too heavily. This is not something as simple as assigning a couple of classes or getting a certification. Reskilling HR professionals for shared services success takes thoughtful planning and execution.

Some suggestions on how to operationalize your shared services reskilling plan include:

• Personalized learning paths: One-size-fits-all training programs are ineffective for reskilling at scale. Organizations should leverage AI and machine learning to create personalized learning journeys based on individual skill gaps and career aspirations. This might include leveraging existing courses or certifications but should be thoughtfully assigned for maximum return.
• Cross-functional rotations: Build the infrastructure to accommodate internal “gigs” (secondments, temporary assignments, project work), and encourage HR professionals to spend time in different areas of the shared services center and with business units. This exposure broadens their perspective and helps develop a more holistic skill set.
• Collaborative learning platforms: Peer learning is remarkably effective, particularly when owned by subject matter experts who use the skills in a real-world setting. Implement social learning tools that allow HR professionals to share knowledge, best practices and real-world experiences as they develop new skills.

Measuring success and ensuring continuous development

Reskilling is not a one-time event but an ongoing process. Organizations must establish metrics to track the effectiveness of their reskilling efforts, including skill acquisition rates, employee satisfaction and engagement scores, performance improvements in new roles and business impact metrics (e.g., efficiency gains, cost savings).

While reskilling is crucial, it’s important to recognize the human impact of this transition, particularly if you want to sustain its success and learn from any challenges. Regular assessments and feedback loops should inform the continuous refinement of reskilling programs. Additionally, many HR professionals may feel anxious about their ability to adapt or fear job displacement.

As leaders, it’s important to address these concerns head-on. Communicate transparently about the reasons for the shift and the opportunities it presents. In many cases, this may expand employees’ opportunities by providing clear career paths within the new structure. There may, however, be real impacts to people’s jobs. In these cases, offer robust support systems, including counseling and career coaching to support employees throughout the transition.

Embracing the future of HR

The shift to shared services represents both a challenge and an opportunity for HR professionals. By investing in comprehensive reskilling initiatives, organizations can not only smooth the transition but also create a more agile, data-driven and strategically aligned HR function.

As we look to the future, it’s clear that the ability to continuously learn and adapt will be the most valuable skill of all. By fostering a culture of lifelong learning and providing the necessary resources for reskilling, organizations can ensure their HR professionals not only survive but thrive in the era of shared services and beyond.

The transformation of HR through shared services and reskilling is not just about efficiency and cost savings—it’s about reimagining the role of HR in driving business success. As HR professionals acquire new skills and perspectives, they become true strategic partners, capable of steering their organizations through the complexities of the modern business landscape.

In this new paradigm, HR isn’t just keeping pace with change—it’s leading the charge.