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Playbook For Upgrading HR Operational Efficiency
Playbook For Upgrading HR Operational Efficiency
Playbook for
Upgrading HR
Operational
Efficiency
© 2022 Gartner, Inc. and/or its affiliates. All rights reserved. CM_GBS_16796000
Playbook for Upgrading HR Operational Efficiency
Only
Only
Operational
Efficiency
1
Low Operational and Strategic Partnership
Strategic Maturity With the Business
Lower
Lower Higher
Strategic Impact
1 2 3 4
Improve HR Process Maximize the Value of Your HR Create and Evolve HR Create a Robust HR
Efficiencies Information System (HRIS) Shared Services Operations Team
• Benchmark HR functional • Utilize the full functionality of • Migrate HR activities into shared • Define the longer-term vision for
performance. your HRIS. services. the team.
• Define an HR service catalog. • Explore opportunities to • Define the relationship between • Create an HR chief operating
automate. local HR roles and the shared officer (COO) role.
• Refine local procedures for global services center.
processes. • Optimize employee adoption • Define additional areas of scope.
of HRIS tools. • Audit the information impact of
• Rethink roles to optimize • Enhance HR data capabilities
the shared services scope.
processes. • Use HRIS to enhance HR’s data and talent.
capabilities. • Define the data needs out of
• Establish clear, agile decision- shared services.
making routines.
Benchmark HR functional performance Define an HR service catalog Refine local procedures for global
Benchmark your HR functional performance, List all HR activities, and the related end-to-end processes
including budget and expenses, staffing, activities process steps. Document who is responsible Identify processes in a given location or business
and costs. Use the results to identify areas of for each step and output, and identify any unit that differ from global standards. Consider
inefficiency. dependencies, such as technological support. mandatory legal requirements as well as
Look for opportunities to eliminate redundancies established local procedures. Implement and
Why it’s important and optimize processes. maintain these procedures in your HRIS.
Benchmarking current performance reveals when
you are using resources in a way that’s out of sync Why it’s important Why it’s important
with your key HR priorities. Set improvement goals A service catalog identifies the standardized HR Global companies with local process variations
and use the baseline benchmark numbers to track services available to the business, details process risk duplication and inefficiency, as well as legal
improvements, as measured by savings, efficiency steps and provides accountability. Examining threats. Document standard and appropriate
gains and spend reallocation. Create a sustainable HR services as end-to-end processes, not just as deviations from the standard to clarify
improvement roadmap to drive productivity individual tasks, ensures that all steps and accountability and reduce the burden of
and growth. responsibilities are documented. This helps to transactional work.
identify and eliminate duplication and inefficiency.
Note: The above are sample recommended actions. For the full list, contact your Gartner representative.
Utilize the full functionality of your HRIS Explore opportunities to automate Optimize employee adoption of HRIS
Globally implement all the HRIS modules included Artificial intelligence (AI), machine learning and tools
in your supplier contract and retire legacy systems robotic process automation (RPA) are popular Understand how employees use HR technology
when functionality is redundant. Establish an agile methods for streamlining repetitive tasks. Analyze to identify opportunities to maximize tech
HRIS team to react to, understand and educate HR processes, workflows and interfaces to identify investment. Leverage employee feedback on
stakeholders on the HRIS and any updates. opportunities to automate. Start with document HRIS solutions to ensure HR technology is
generation and contract handling and move useful and relevant.
Why it’s important toward chatbots and other self-service tools.
Utilizing the full functionality of the HRIS Why it’s important
maximizes the potential to drive fast, efficient Why it’s important The HR technology function spends more than
technological outcomes without additional Automation helps improve: 70% of its budget on technology service provider
investment. Implementing these modules in expenses. Achieving return on this investment
• Process quality — Minimize error by automating
all units globally helps achieve efficiency, data requires that it deliver value to the HR
and standardizing common tasks.
integrity and compliance. function — which is difficult to do if employee
• Speed of execution — Complete existing tasks tech adoption is poor.
more quickly using automatic processes.
Note: The above are sample recommended actions. For the full list, contact your Gartner representative.
Migrate HR activities into shared Define the relationship between local HR Define the data needs of shared services
services roles and the shared services center Utilize three forms of data insights:
Develop a plan to transition HR activities to shared Define the roles fulfilled by different resources
• Data collected from employees directly (i.e.,
services. Consider process complexity, process to drive the timeline and adoption of shared
surveys asking employees to rate the usefulness
standardization potential, shared services services. Segment business units based on the
of certain content)
readiness and internal customer readiness. speed with which they will be able to transition
to shared services. Reassess the roles and • Data collected indirectly through HR portals
Why it’s important responsibilities of regional and business unit HR and chatbots (i.e., insight into the relative
Planning shared services migration helps prioritize teams at regular intervals as the organization importance employees place on various
HR activities and processes that are likely to and HR function evolve. programs)
make the greatest efficiency improvements —
Why it’s important • Transactional data collected through HR
and facilitate easier transitions. Shared services workflow ticketing systems (i.e., ticket types
centers should start with transactional or Different managers and leaders will adopt or ticket volumes)
standardized activities and progress to self-service practices at different paces, which
judgment-based activities over time. will require local HR to continue addressing Why it’s important
transactional requests until slower adopters
make the transition. Plan for local HR associates Shared services can use data to analyze trends in
to serve as coaches and change during this time to demand, identify process workflow bottlenecks
support the transition of end users to automated and drive self-service improvements. Due to its
proximity to operational HR tasks, shared services
shared services.
data can also raise awareness of trends that might
indicate an up-and-coming talent issue or
Note: The above are sample recommended actions. For the full list, contact your Gartner representative. opportunity.
Define the longer-term vision for Create an HR COO role Enhance HR data capabilities and talent
the team Create an HR COO role to oversee and drive Grow analytical capabilities so that HR operations
Outline the longer-term vision for an HR operations collaboration across the HR operations team. can handle a broader scope of activities. Consider
team. Use this vision to set goals and track progress hiring data scientists, engineers or analysts.
against them, and to set and manage expectations Why it’s important
about what the HR operations team will deliver. Why it’s important
The HR COO oversees efficiency and data-driven
innovation across the whole function. The COO An HR operations team should use data to manage
Why it’s important connects HR teams with different expertise to its services. As the team’s scope grows, HR
Defining a longer-term vision can help HR measure ensure that the work of specialists such as business partners will rely more on operations to
progress in areas such as efficiency, cost, customer operational experts and HR technologists — provide the data they need to serve as strategic
satisfaction and scalability. Having a clear vision who may sit in a shared services organization — talent partners for business unit leaders.
can also help communicate the benefits of the HR are broadly embraced by all corners of HR.
transition, the phases over which it will unfold, and
the benefits business stakeholders can expect to
see at different phases.
Note: The above are sample recommended actions. For the full list, contact your Gartner representative.
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