Organisations use shared services as a way of organising their HR activities, typically concentrating administrative activities into a centralised 'hub'. The shared service model can help businesses reduce costs, avoid duplication of effort, and allow a greater focus on HR strategy. Often shared services are seen as supporting strategic business partners and centres of expertise in HR.

This factsheet outlines how shared services work and the benefits of introducing them in an organisation. It takes a closer look at the typical tier structures and provides guidance on planning and implementing shared services across an organisation. It also highlights factors to consider for ongoing shared services management.

This factsheet was last updated by Steve George: Digital Learning Portfolio Manager, HR and Employment Law, CIPD 

Steve manages content for all CIPD’s HR and Employment Law learning. He is a CIPD associate member. 

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