Shared service centers: widening the skill gap

Damian Williams 02-Mar-2009

According to a report in Personnel Today, over 56% of HR executives and CEOs believe that shared service centers are killing off the skills of our HR professionals, through lack of exposure to key working practices. 

It’s a worrying thought that the next generation of HR professionals might be missing out on vital skills and experience, simply from a lack of exposure.  The report expects this to lead to skill gaps further down the line.

I don’t believe for one minute that shared services is the sole cause of this; let’s not forget the many benefits it can bring, through streamlining resource and cost.  But there’s clearly a balance to be struck between processes that are shipped out and those kept in-house, so that ‘core’ HR skills are passed on to future HR executives.

We are all aware that HR faces the challenge of having to prove its value, especially in the current climate.  However, HR should be viewed as a ‘business change’ function, rather than simply an admin department churning out expense claims and holiday forms.  To help to make that move to establish itself as a legitimate decision-maker in the boardroom, managers need more time to invest in thinking strategically. 

So, the time saved through the effective distribution of processes through shared services means that there is now more time available to strategize and start planning for the upturn. 

It is crucial, though, that HR managers must also find the balance between utilizing resources effectively through shared service centers and not letting the skill set of their colleagues suffer through lack of experience in HR admin and procedures.