In today’s increasingly complex HR environment, where businesses operate across multiple geographies, the need for structure, efficiency, and consistency in HR operations has never been more critical. HR Shared Services (HR-SS) has emerged as a strategic solution, not just to centralize, but to transform how support functions serve the business and its people.
Over the past few years, I’ve had the opportunity to build and lead an HR-SS function across six highly diverse countries. In this article, I’ll share a real-world, practical blueprint to help HR leaders design, launch, or optimize a shared services model that balances standardization with local sensitivity, efficiency with empathy, and structure with scalability.
Start with Strategy, Not Structure
Before establishing any shared service function, HR leaders must answer a fundamental question: why are we doing this?
Is it to reduce costs, improve service levels, ensure compliance, or support growth? The answer shapes everything from your operating model to your KPIs. Shared services is not just about consolidating tasks, it’s about enabling HR to become more strategic by offloading routine operations into a streamlined, high-performing hub.
Equally important is defining what to centralize and what to keep local. For example, transactional processes like payroll, employee records, and onboarding logistics are perfect candidates for centralization. On the other hand, culture-driven processes such as engagement and leadership coaching may require local ownership.
Embrace Diversity Without Losing Unity
Managing HR across multiple countries means navigating different labor laws, cultural norms, languages, and systems. This diversity can be seen as a challenge, or a reason why shared services must exist.
The key is to adopt a “Global Core with Local Flex” model. This means standardizing foundational processes, service levels, and technologies, while allowing local adaptations where necessary, such as benefits structures, time-off policies, and tax treatments.
In our journey, we found success by creating a central knowledge base, shared SLAs, and cross-country training. But we also respected local practices, which made our model more agile and accepted by stakeholders.
Change Management: From Resistance to Harmony
Implementing shared services involves significant change. Teams accustomed to local control may resist centralization, fearing loss of relevance or quality.
To lead this change effectively:
• Start small and scale fast. Pilot the model in one country or function and use early wins to build credibility.
• Engage stakeholders early. Their input and sponsorship are critical to overcoming resistance.
• Over-communicate benefits and timelines. Transparency builds trust.
• Foster a shared identity across distributed teams with common goals, shared metrics, and cross-border collaboration.
Harmony doesn’t mean everyone doing the same thing. It means aligning people behind a shared purpose, while respecting how they get there.
What Makes It Work: Success Factors & Enablers
From experience, here are the Six success factors that determine whether an HR-SS model thrives:
1. Strong governance and clarity of roles
2. Process discipline with standardized SOPs
3. A skilled and service-oriented team
4. Partnerships with IT, Finance, and Legal
5. A culture of trust and continuous feedback
6. MY SECRET SAUCE
And here are the key enablers:
• A reliable HRIS and ticketing system
• A centralized knowledge base
• Performance analytics and dashboards
• Consistent training and internal communication
• Management support
Technology alone doesn’t deliver results, people and process must lead it.
The Real Impact: Measurable and Human
A well-executed HR-SS model delivers both hard and soft results.
Tangible business outcomes:
• Reduced cost and headcount pressure
• Faster, more accurate payroll and query handling
• Full compliance across markets
• Scalable support for business expansion
Human outcomes:
• Stronger employee trust in HR
• Greater clarity and accountability
• Better work-life balance for local HR teams
• Enhanced career paths for HR-SS professionals
Ultimately, shared services should enhance the employee experience, not just cut costs.
Final Thoughts: Practical Advice for HR Leaders
If you’re designing or refining your HR Shared Services model, here are five principles I’ve learned the hard way:
1. Build systems for people, not just around them
2. Progress beats perfection, start, learn, and adapt
3. Balance consistency with empathy
4. Engage your team early and often, they’re your ambassadors
5. Don’t just centralize processes, elevate them
In the end, the success of shared services is not about HR efficiency. It’s about enabling the business to thrive, employees to feel supported, and HR teams to focus on what really matters.
