With companies under constant pressure from competitive markets, changing economic environments, and increasing overheads, more organizations are looking at other ways of improving their profit margins. Whilst the concept of shared services has been around for some time, Proven is seeing an increasing number of companies looking to utilize HR shared services in Saudi Arabia.

An HR shared services model allows multi-location HR teams to outsource or consolidate major processes to one business unit. This model of HR services in Saudi Arabia improves cost efficiency, and the service levels of the department and contributes to the overall market competitiveness of the organization.

In this article, we cover 6 advantages of using HR shared services in Saudi Arabia.

Combining processes for economies of scale

The processes or tasks are often repeated across the different locations that a company has, by multiple employees. However, this does not leverage the economy of scale when each location operates as an individual unit.

Companies can outsource processes to a shared service provider or establish their own shared service center. Both these options enable them to work with greater efficiency, and save time and costs on HR software and implementation, with their tasks under one team.

Optimize your operational efficiency

Trying to accomplish all tasks with a small HR team decreases the efficiency of the team. Consider outsourcing administrative tasks to optimize the team’s operational efficiency.

HR shared service providers have staff to complete tasks such as payroll, vacation processing, or software implementation, allowing your company’s team to focus on strategic tasks.

A 2017 Deloitte survey showed that productivity of shared services increased by 8% annually, with 73% of respondents reporting more than a 5% increase or higher.

Continuity of operations

By using an HR shared service provider, you’ve assured continuity of service.

In your company, employee turnover may cause setbacks or delays until you find a replacement and retrain them. However, with a shared service provider, they will be able to provide you a continual service, as they have the required knowledge, expertise and staff.

Improve the quality of services

An HR shared services provider can serve as a backup to your team. When HR teams are overloaded, response time greatly increases and employees are left dissatisfied.

Using an HR shared services provider to support your team will increase efficiency and the level of service provided.

Reallocate your internal resources to focus on strategic tasks

Your internal HR team is well-versed in the company values, culture, and functions, therefore, they are best suited to train employees on their knowledge of the company. Through using shared services, your internal team can focus on strategic level tasks, such as professional development and retaining your talented employee pool.

Internal HR should focus on the face-to-face aspect of the role, such as engaging with current and potential employees, contributing to the training, learning, and development of staff, and managing the strategy for building future leaders for the company to ensure continuity of business.

Benefit from the collective experience and advisory services

By using an HR shared service provider, you’re able to benefit from years of combined experience and therefore produce effective results in your business without the cost of recruiting a seasoned professional.

Taking advantage of this can help your internal team streamline their processes, such as employee performance appraisals, employee and leadership development, and manpower planning.

HR shared services are beneficial for companies that are growing and expanding, especially for SMEs as this helps them cope with the fast-changing marketplace they are operating in. Centralizing HR services, allows companies to expand more efficiently, as there are standard processes in place used throughout the company.

For support with shared services, contact Proven at +966 11 411 1127 or [email protected].