Are you prepared for the future of HR shared services?  

This year’s HR Service Delivery Practices Survey focuses not just which services are being delivered, but how they are being delivered, and why — a critical yet often overlooked aspect of HR service delivery models.

This is particularly important in 2024. According to Mercer's 2024 Global Talent Trends study, the introduction of generative AI (GenAI) in the workplace is expected to fundamentally change business models in the next few years, increasing productivity by 21%–35%. It will also bring fundamental changes to how human resources (HR) operates, as organizations that cling to outdated models risk falling behind, while those ready to embrace change stand to leap ahead.

Acknowledging this growing impact of GenAI on HR, this year’s HR Service Delivery Practices Survey moves beyond simply examining the HR Shared Services (HRSS) service portfolios, headcount and staffing ratios. Here we also explore how some organizations are already leveraging cutting-edge technology to revolutionize HR service delivery — and discuss how a failure to rethink existing structures may ultimately stand in the way of progress.

• Massive changes are underway in service delivery. While many organizations report that their tiering models are largely effective today, significant challenges remain—especially when it comes to the enabling infrastructure. Knowledge bases, modern technology, and a structured approach to continuous improvement and digital workforce experience are frequently lacking. These deficiencies are causing friction within the service delivery model, as employees and managers struggle to use appropriate channels for interacting with HR. 
  
  
• Tiered delivery remains the most effective architecture for managing the flow of HR services—from direct access and HRSS to Centers of Excellence (COEs) and HR Business Partners (HRBPs). However, with the introduction of GenAI and other technological advancements, the tiering models of today will be forced to radically evolve. Organizations with a strong enabling infrastructure will be well-positioned to seize these opportunities, while those that lag behind will face increasing difficulties in adapting to new technologies and maintaining effective service delivery.

The report provides a snapshot of current practices, highlighting the opportunities and obstacles organizations face as they prepare for the future of HR service delivery in a rapidly evolving digital landscape.

Is your organization ready to meet the moment, or will you be left playing catch-up?