Shared services are centralizing support services into one location, for example, many companies use shared services if they have multiple offices and want to consolidate their finance departments into one, to function for all the offices. Shared services are most often in the finance, marketing, HR, purchasing, inventory, payroll, hiring, or IT departments and can be held in-house or outsourced to a shared service provider. They allow companies to reduce department sizes and streamline tasks and processes, especially repetitive administrative tasks. This way shared services help companies reduce costs and improve service quality. Although, shared services have proven to come with more benefits than just cost savings.
Productivity is a major benefit shown through implementing shared services, as a Deloitte survey showed that 73% of respondents experienced productivity increases of 5% or higher from the previous year. In this article, we will unpack 3 major reasons why using shared services can increase workplace productivity.
Shared services increase productivity through menial tasks being outsourced to the shared services team. This means that departments can focus on tasks that are necessary for company growth and success. Repetitive tasks often drag down employees who are already not engaged in their work, therefore, when these tasks are outsourced, the key work is left and employees are challenged, engaged, and efficient in completing their work.
Companies that use shared services give their employees more time to focus on higher-level work that is more beneficial to the company. When employees work on higher-level work they are more engaged in the work they are producing as their specialized skills are required.
Many companies ask employees to work on tasks that are not relevant to their department, therefore misusing the skills and talent they have. Rather, outsourcing tasks that are not required to be completed by the team and giving each team a clear direction on where they are going creates a better functioning and forward-moving team.
Shared services help companies increase their employees’ productivity because employees are able to focus on high-level tasks requiring skills and eliminate the tasks that slow down productivity such as repetitive tasks. Now, employees have a better flow to the way they work and can produce higher quality work more productively.