Different Types of HR Service Delivery Models
There are three main types of HR Service Delivery models:
Traditional HR Service Delivery model
The traditional model is where a central, generalist HR staff provides some key services and handles the needs of line managers, employees, and senior staff. In some cases, there may be divisions based on department or employee level. This is the most common type of HR Service Delivery model, especially in smaller organisations or ones with a more centralised workforce.
HR shared services model
The HR shared services model (also known as a centralised HR service delivery model) involves three components:
In this model, a centralised team—HR shared services—is the first point of contact for employee and manager requests. This group manages the processes and transactions associated with those requests, which relieves HR business partners from having to spend time on administrative work.
HR business partners are strategic HR generalists embedded in the business units. They work directly with senior management on tasks that affect the bottom line, such as succession plans or compensation programs. In organisations with very efficient HR shared services, HR business partners have more bandwidth to act as a consultant to their business unit, advising leaders on matters such as workforce planning or mergers and acquisitions.
When an employee or manager encounters a case that’s too complex for HR shared services, it gets escalated to centres of excellence (COEs). COEs are composed of highly skilled specialists focusing on areas such as talent, performance, learning, benefits, and compensation.
COEs are primarily responsible for developing HR programs and policies, and they work hand-in-hand with HR shared services to ensure they’re executed and supported. Similar to the relationship between HR shared services and HR business partners, the more administrative work that can shift to HR shared services, the more time COEs have for strategic work.
Four-tier HR shared services model
The four-tier HR shared services model takes efficiency even further by adding a self-service layer. Employees and managers have access to a knowledgebase that lets them search for information and policies on their own, without having to contact anyone from HR shared services. This is known as Tier 0 support.
If employees don’t find what they need on their own, they can submit a case, which then gets routed to the appropriate HR representative—Tier 1 support. If the issue calls for more skilled or specialised knowledge, the HR representative escalates the request to Tier 2 support.
Tier 3 support is reserved for those cases (e.g., employee relations) that require face-to-face interaction, usually with an HR Case Manager or HR Business Partner.
This model is increasingly gaining traction because it allows HR to substantially scale their service delivery. Adding Tier 0 support reduces the amount of phone calls and emails to HR regarding routine questions. According to Gartner, a well-implemented Tier 0 knowledgebase enables employees to solve their own questions anywhere from 40%–70% of the time. This frees up HR to provide high-touch support for the situations where it’s most needed.