Human Resources Transactional Services
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Transactional HR services aim to streamline and optimize HR management by integrating various administrative functions to reduce costs and improve service delivery. The process involves defining roles, measuring performance, and continuously analyzing customer satisfaction while seeking cost savings through efficiencies and workforce reductions. Successful implementation requires strategic planning, effective communication, and a focus on organizational structure and human capital development.
Human Resources Transactional Services
- 1. Transactional HR Services MAC Calcano
- 2. What is Transactional Services about? Transactional Services can be a method by which to create synergies with Corporate HR and other businesses. Combine functional HR processing (salary management, benefits administration, HRIS) and other related HR programs in order to reduce administrative costs Focus HR management efforts on maximizing personnel transactions and service effectiveness including reduction in personnel spending thus increasing HR team’s service orientation and response time to business needs.
- 3. Transactional Services is the leveraging of HR programs and plans to meet defined customer/client requirements at agreed-upon performance standards by managing : HR Service Design and Delivery Customer Service and Satisfaction Employee Motivation and Commitment HR Business Contribution
- 4. Transactional Services Process Establish a common understanding of services: What are they and how will they be delivered and at what costs? Focus on: Personnel Administration Functions (Back-end) Functional “expert” centers – Benefits, HRIS Personnel Services that can be delivered at a specific site for a entire region with no extra cost in personnel costs
- 5. Transactional Services Process Technical competencies of HR “talent” must be developed in order to deliver high-end services – including possibility of outsourcing Accountability and responsibility should be clearly delineated (e.g. management and administration as a cost driver which is linked to satisfactory delivery of all employee programs HR performance should be constantly measured with HR Metrics to determine ROI Identify Transaction Service Teams and Co-leaders Identify those HR processes which can be leveraged Define HR roles and agree upon how project work should be performed across company to meet transactional service requirements and expectations Define desired quality of “exceptional” service to customer /client expectations and deliver on targets
- 6. HR Transactional Service categories which are “ leverageable” Transactional Expertise Benefits & Salary Administration HRIS Administration & Services Employee Programs Training & Development Activities
- 7. Transactional Services Process Identify staff cost savings Evaluate current customer satisfaction Determine the relative importance of deliverables to operations Benchmarking with Competitors and Corporate Centralized, single source accountable center which is dedicated to addressing all personnel related issues – end state.
- 8. Transactional Services Implementation Step 1 : Getting Started Assemble Project Teams to determine which are the “transactional services” Complete Shared Services Project Planning and Gantt Charting Begin transparency in communication and coordination of project mission Step 2 : Opportunity Analysis Develop the business case and cost analysis Create cost / FTE, productivity and satisfaction baseline Step 3: Transactional Services Design Redefine work processes – Workout process Detail organizational changes and rationalization Plan Implementation Transactional Service Center Step 4: Transition to Transactional Services through Change Management Process Establish new organization and process and protocols Pilot test and complete workflow reengineering Deliver on transactional service levels
- 9. Transactional Services Potential Off-Set 35% - 50% of transactional costs can be substantiated by the savings generated in: New work processes efficiencies (20%) Head count reductions (15%) Delay in hiring practices (15%) Acquiring new HRIS system (20%) Miscellaneous Workout sourcing (10%) Consolidated/reduced staff without negatively affecting service levels or morale (20%)
- 10. Cost savings through Transactional Services Example of potential savings in work processes efficiencies and consolidated/reduced staff Possible elimination of redundancy in HR functions and combined services Train/Dev. Manager (15%) $ 25K Labor Manager (25%) $ 20K HRIS Services (15%) $ 10K L.A. Compensation Analyst (10% ) $ 15K Benefits Coordinator (10%) $ 10K HR Manager (25%) $ 20K Approximate Expense Contribution: $100K
- 11. Organizational effectiveness sets forth the HR Strategy which then increases Company competitiveness Changes Global Marketplace New entries And Competitors Investment in: People Intensive * Competencies are key to entry * Global mindset * Growth Market * Seamless HR practice HR Business * HR Policy & Procedure * Manufacturing and Supply Process Improvement * New business initiatives Implications for HR * Innovation and CHANGE * Service mindset * Value Added results * Talent Management Cause Effect
- 12. 1.) Localization 2.) Consistency 3.) HR value chain for business competitiveness and services 4.) Profitability through cost control and growth through acquisition 5.) Focus on talent & skill base for HR 6.) Change management & project process 7.) HR Technology implication and Speed to React 8.) Attracting, retaining, measuring and intellectual human capital 9.) Turnaround is not transformation 10.) Evolution Not revolution The investment in Human Resources The Cause
- 13. HR helps manage the business by transforming the organization Individual focus Status Quo Vertical communication Success through risk avoidance Remain constant Little change Team status “ Employer of Choice” Constant enhancement Vertical & Horizontal communication Success through leadership, courage and risk taking Management processes are competitive advantage Speed to react FROM TO Entitlement Culture - little at risk Results Culture - we deserve what we earn
- 14. Framework for HR which partners with the Business The Effect Defines organizational architecture and footprint Six factors for successful operation: Shared mindset with Corporate HR Competence in-Country Consequence if not achieved - In or Out Governance by Corporate Work process/ capacity for improvement Team leadership – self-direction 2. Creates assessment and succession process and practices 3. Provides leadership in improving HR practices 4. Sets Training and Development priorities 5. Establish the organizational structure and translates strategy into tactics 6. Learns to perform organizational diagnosis by asking the right business questions and by generating creative and apt alternative practices and recommends solutions 7. Be able to set actions and initiatives and then follow through – relentless