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Pros and cons for HR shared services


Nowadays, outsourcing has become a trend among many businesses in Singapore. This is because hiring and training your own staff can take a lot of time and effort. That is why they find it more cost-effective and effortless to outsource instead. That is why many business owners are thinking of availing HR shared services.

There are many HR companies in Singapore that can provide quality assistance to your business. However, before inquiring about their services, you need to understand what will be the effect of you acquire HR shared services. In this article, we will discuss the pros and cons of HR shared services.

Pros of HR shared services

#1 – HR tasks and software are consolidated

Businesses tend to undergo changes as time goes by. They will either be upscaled or downscaled. Sometimes, they will even merge with other companies. Thus, this will result in changes in the HR department. If these changes occur, it is important that there are no redundancies in the HR department. That is because this will cause confusion. Furthermore, this will cause inefficiency and unnecessary costs. With HR shared services, this will not be a problem. That is because these HR companies can consolidate the HR tasks and software used to improve the work efficiency of the HR department.

#2 – Higher overall efficiency

Even if you hire HR shared services, it is still necessary that you have an HR department in your business. Most companies outsource the laborious and repetitive HR tasks such as payrolls, updating employee data, audit preparation and compliance, and many more to HR Shared Services. This is so their in-house HR staff can focus on other important HR tasks such as employee career development and training seminars. Thus, higher overall efficiency will be seen in the HR department.

#3 – Consistency in HR processes

There are many repetitive HR tasks and processes that are done in a company. If your in-house HR staff will handle all that by themselves, they might not be able to do all of that. Worse, this might cause a lot of backlogs or a lack of quality in employee services. However, with HR shared services, all of those HR tasks will be accommodated. Furthermore, these HR processes will be constantly updated. Thus, consistency will be manifested in the HR department in all of its obligations. 

Cons of HR shared services

#1 – Same HR process may not work for all

There is a saying that there is no one solution to all problems. That is true especially with HR shared services. One HR process may not work for all entities of the business. This is especially the case with multi corporations. As a result, one part of the business may not be getting the HR needs that they need. If the HR shared services were not able to find a way to address these needs, this can not only affect that particular entity but also the company as a whole.

#2 – Technology not on par with HR shared services

Nowadays, there are lots of software that can be used to simplify many HR tasks. HR shared services use many types of software programs to be able to keep with all their client’s HR needs. However, it is good to take note that not all HR program applications can accommodate multiple companies at the same time. Furthermore, there are software applications that are not compatible with centralized HR tasks. As a result, there are some great HR technology applications that can’t be used in HR shared services.

#3 – Cost-efficiency do not always manifest

One of the reasons why businesses prefer to outsource HR services is because it is more cost-efficient. However, That is not always the result of every aspect of the business. Recruitment, for example, it might get costly through HR shared services than having an in-house HR staff do it. That is especially the scenario if you are intending to hire employees that have rare or specific skill sets. Most of the time, HR shared services will not have the means to find highly qualified employees. As a result, you might get lower qualified job candidates.

Make your final judgment

Now that we have discussed the pros and cons of hiring HR shared services, it is time for you to decide. Should you get HR shared services for your company? Do you think it is the most ideal solution to accommodate your HR needs? If so, WLP Group is a company incorporation provider that also specializes in payroll and HR shared services. Find out more about our HR shared services by heading to our website. 




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