Consumerized Employee Services: The Next Evolution in ...

1 Consumerized Employee services : The next Evolution in Shared services By Catherine Farley, Jill Goldstein and Susan M. Cantrell Shared services has become a prominent operating model for business support services , helping companies improve efficiency and reduce costs. The next Evolution of shared services will adopt a whole new paradigm: from HR and other functionally organized shared services that serve the Employee to integrated Employee services , in which employees are viewed as consumers. This approach promises to boost Employee satisfaction, engagement, retention and productivity. But to garner these advantages, organizations will have to rethink the way they deliver services to their people. Businesses have driven new watersheds embarking on a new journey to develop IBS offers internal customer experiences in growth by developing a superior customer superior Employee experiences.

2 The payoff from a single point of contact, based on experience. They've given consumers is huge: improved workforce productivity, their needs, regardless of which department increasingly seamless interactions with greater Employee engagement and retention, the services come from. The intent is to every touch point with their brand, and and further cost reduction. elevate service provision to a strategic they've provided highly personalized and level by creating value in innovative new customized products and services . They've ways and delivering dramatic business empowered customers to help craft their What are Employee services , results, not just optimization of back-office own experiences, and they've predicted functions. (For more on IBS, see Driving consumer behavior so they can proactively and how are they part High Performance: Delivering Enterprise reach out to consumers before awareness of the next Evolution of Value through the Evolution of a need even exists.)

3 Shared services ? of Shared services Organizations. ). Forward-thinking organizations are applying The journey toward Employee services is Employee services is one of many end- these same principles to their Employee part of a greater transformation effort that to-end services now offered through an experience. And in adopting an Employee many progressive organizations such as IBS approach (See Figure 1). We define services approach, they are ushering in Cisco, P&G, Unilever, Accenture and other it as the ability to meet Employee and an entirely new era of shared services and pioneering companies are making from manager needs as well as alumni, retirees, business process outsourcing, in which shared services toward an entirely new job candidates, new joiners, and even employees are viewed as the consumers.

4 Model of integrated business services (IBS). contractors and others in the extended . No longer focused solely on service delivery workforce in a highly consumer-oriented and cost reduction, shared services is Integrated business services is the ability way anytime, anywhere, and any way. to offer end-to-end, integrated services The goal is to significantly improve the both within a functional group such as HR Employee experience to create unprec- or procurement, but also across functions edented business outcomes. as diverse as HR, IT, supply chain, finance, and more. 2. A confluence of forces has encouraged In addition, recent advances in digital Seamless, end-to-end experiences this trend. Most important, employees technologies such as improved workflow organized around Employee needs are consumers too.

5 As employees, they technologies, more intuitive user interfaces, expect even demand the same kind of cloud, mobile, social, and analytics are Clear definition of moments that highly personalized, easy and delightful now enabling a more consumer-like matter to employees experiences they enjoy as consumers. approach. Many consumers can walk into a grocery Consumer-like digital services that store, for example, and immediately receive And as shared services organizations realize delight employees a coupon on their phone based on their that many employees remain dissatisfied buying preferences. Likewise, employees with services and that centralization, Analytics that proactively address expect similar experiences: they expect standardization and labor arbitrage have Employee needs their employer to understand business already delivered maximum efficiency problems they're facing and immediately gains, they want to now create more Innovative services that enable serve up relevant learning solutions to help strategic value by serving employees in Employee empowerment, solve those problems, for example.

6 Or as new ways. In this report, we explore how customization and choice soon as they arrange for a business trip to the following principles of consumerism Tokyo for their employer to immediately are being applied to create successful provide verification that their visa is current Employee services , including: and even a map of their destination. Figure 1: The Emergence of Integrated Business services Discrete Shared Regional Multi-Function Global Business Integrated Business services Shared services services services (IBS). IBS Lead Commercial services Supplier services GBS Lead Employee services Enterprise value Source to Pay Financial services MFSS MFSS MFSS. Lead Lead Lead Order to Cash Analytics services FIN FIN FIN Hire to Retire Americas EMEA APAC.

7 Americas EMEA APAC Service Innovation HR HR HR. Fin HR IT Global Process Owners Global Service Owners IT IT IT. HR Americas EMEA APAC Global Delivery Network Integrated Delivery Network HR Common Service Management Global Service Management Integrated Service Management Maturity Classic back-office Added skill functions Greater end-to-end Increased cross-functional scale functions and cross-functional process control and integration to deliver delivered at lower cost synergies enhance delivery of middle greater business value the business case office, as well as back From business unit office services Maximum agility through silos to functional Increased leverage location agnostic integrated siloes still creates achieved through Greater agility through services and partners non-standard a common service end-to-end process processes delivery framework ownership and fewer C-suite led and has delivery partners end-to-end decision rights over budget and 3 all resources Designing seamless, end- For example, one global financial services organization reengineered its onboarding to-end experiences around process to truly meet or exceed the Employee needs expectations of the new joiner and the hiring manager by organizing associated Traditionally.

8 services offered to employees activities around this need with a single have been organized around functional point of contact. Today, new recruits and areas such as recruitment and learning hiring managers receive concierge-type (HR), payroll management (finance), services that start when a candidate technical support (IT) and office space accepts an offer. Activities related to (facilities management). This same structure onboarding span HR siloes including is used to service the workforces. But the ability to provide new hire orientation employees and managers don't think in and training (learning), benefits enrollment terms of these siloes; they think in terms (benefits), and payroll set up (payroll of questions they want answered (See management).)

9 But they also go beyond Figure 2). Rather than bundling up disparate HR services entirely to span other functional functional services and offering them siloes such as getting a corporate credit to the workforce, an Employee services card (procurement), a personal computer approach begins by organizing services and system access (IT), and building access, with an understanding of the expectations security card, and office (facilities). and needs of the Employee . Figure 2: The Shift from Functional services to Employee services Functional services Examples Employee Oriented services Examples Contact I am starting to work for [company]. Center tment Recrui I need to travel for business mance Perfor & I am leaving [company]. ement Manag ation Payro ens ll Comp I need approved time off Learn ing I have a personal need having a child I need a new computer IT Help Desk 4.

10 When services are organized around manager satisfaction, net promoter score, For instance, a fast-growing high-tech Employee needs, functional siloes go away. workforce engagement, the ability to attract company had a shared services model Integration of services will need to be and retain talent, and worker productivity. only for finance. Starting from that core, provided in terms of metrics, governance, For a recently completed pilot project it identified adjacent services from other case tools, processes, vendors and workflow. at one company, for example, employees functions that could be packaged as an Someone then must orchestrate the many who were on child-care leave returned Employee service and assessed through moving parts involved.