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. 

Related content

Bitesize research
Key elements of day-to-day HR practice

Researchers investigate the daily obstacles faced by HR practitioners when trying to work proactively rather than reactively

For Members
Reports
People Profession 2023: International report

Insight into how global issues are impacting people professionals in the UK, Ireland, Asia-Pacific, MENA and Canada

Reports
People Profession 2023: Asia-Pacific report

Insight into how global issues are impacting people professionals in Australia, Hong Kong, Malaysia and Singapore

Reports
People Profession 2023: Middle East and North Africa report

Insight into how global issues are impacting people professionals in Egypt, the Kingdom of Saudi Arabia and the United Arab Emirates

Explore our other factsheets

Factsheets
Workforce reporting

Learn about defining, measuring and reporting human capital, and how HR can use human capital information to drive performance

Factsheets
Employment status

Understand how being defined in UK law as an employee, a worker or self-employed affects employment rights and employers’ legal responsibilities

Factsheets
Strategic reward and total reward

Outlines the main characteristics of strategic and total reward, and looks at designing and implementing a reward strategy across the organisation

Factsheets
Employee voice

This factsheet looks at employee voice, its purposes and use, and the benefits it can bring to an organisation and its workforce. It also covers whistleblowing and creating a speak-up culture

Factsheets