The benchmarking community "HR Services": Here the best share their knowledge!
More than ever before, HR service managers from medium-sized and large companies are under pressure to prove the performance and competitiveness of their organization and to set the right course for the digital future.The benchmarking community "HR Services" was launched in 2018 by a group of major German companies. The aim of the participants is to be able to validate their own performance against all internal stakeholders and to set the right course for the further development of their own organisation more quickly.
To be able to precisely prove your own performance in all relevant aspects
To be able to make the right decisions for the further development of your own organization more quickly
Precise benchmarking of HR service processes with quality-assured data, a transparent group of participants and an open dialogue on the results
A structured professional exchange: What do the "good guys" do differently from the average? Which concepts do comparable companies pursue? What works, what doesn't? What is planned and what has been rejected again?
The participants usually remain members of the community for several years and build up a close network with their colleagues from comparable companies.
The benchmarking methodology
We have developed the benchmarking layout together with our members and are continuously refining it together.The result is always a precise approach that enables the participants to demonstrate their own performance to internal and external stakeholders.
The benchmarking layout comprises three elements:
- A clearly defined and precisely described field of vision
- Output variables or key figures that are clearly defined and reflect the most important aspects of "good" process performance
- Influencing factors that affect the field of view and can be responsible for why a participant performs better or worse than the average. Influencing factors can be influenceable or, as a complexity of the environment, can be a determinant for HR services.
The benchmarking community is long-term and follows an annual process.
The goal of the approach is
- to ensure that participants always know who they are comparing themselves to.
- to enable participants to better appreciate the quality of the data.
- to exchange good solutions with each other more confidently and effectively.
- to continuously develop benchmarking and make it an increasingly precise tool for the members of the community.
We are currently benchmarking the "mass processes" of personnel work. For defined service levels, the focus is on cost and productivity indicators.
Payroll accounting is broken down into four process bundles, for which we determine the resources used in benchmarking:
- Preparing and maintaining accounting system
- Payroll for active employees (incl. request processing)
- Accounting for pensioners (incl. processing of inquiries)
- Initiating payments and reconciling accounts
The personnel administration bundles a bouquet of tasks, which are only completely performed by a central service center in exceptional cases:
- Maintaining the HR portal and other admin systems
- Advising executives and business partners (in administrative matters)
- Processing queries (in administrative matters)
- Administering HR measures
Time management is a complex and sensitive process for many participants. Time management includes the following sub-processes:
- Preparing Time Management Systems
- Maintaining and evaluating master and transaction data
- Processing inquiries
Travel expense accounting
In this module, we analyse all relevant sub-processes, regardless of whether the process responsibility lies with HR, finance or another area of the company.
- Preparation of the travel expense accounting system
- Administering advances
- Processing documents
- Processing trip data
- Accounting for travel expenses
Output variables and influencing factors
In the circle of participants, we have formed a series of key figures with which we can determine productivity, costs and, in future, the quality of the individual HR service processes and make them comparable.
We also examine a number of influencing factors that may explain why a company performs better than its peer group. These factors include the sheer size of the company and whether a participant is actually taking advantage of the economies of scale its size holds for it.
Next, we examine the complexity of the environment - often, with increasing size comes increasing complexity and speed of change. Together with the participants, we have developed around 40 complexity drivers that can make life difficult for an HR service organization (from the number of location-related company agreements to the number of internal changes). A comparison of these complexity drivers shows whether you are a company with a relatively stable and tidy environment or one with a very complex environment.
Finally, we look at the maturity level of your organization: Which of the well-known drivers for efficiency and customer satisfaction are implemented in your organization and how consistently have they been implemented?
Workgroups in benchmarking
We discuss "good solutions" in working groups. The focus here is on the trusting exchange of experience between the participants. In a sequence of virtual and live meetings we structure the respective topics together, separate the essential from the unimportant and determine which participants have already found answers to the most important questions. We agree on what characterizes a good solution and which prerequisites companies must create in order to implement these solutions.
Here, the participants exchange ideas about good solutions for harmonizing and standardizing their HR services: from the concrete course of a certification process to a pragmatic ICS to the new ticket systems. The participants present their solutions for discussion and learn from each other.
Automation and AI
This circle deals with the automation of HR services. It is not only about the technical solutions for self-services, mobile applications, portals, workflows, RPA and AI, but also about the governance in the digitization of HR services, about business cases, roadmaps and above all about the necessary process standards that are needed to be able to automate a process at all.
Organizational and technology strategies for PY and T&A
In this working group, we examine what plans participants have for the future organization and technology of payroll and time management, what assumptions underlie these plans, and how they intend to implement them.
Half the battle: A circle of active and exciting participants
Our participants are the managers and process managers of the large HR service organizations in Germany. More practical know-how seldom comes together:
|Base (Douglas Gruppe)||EnBW||MTU Aero Engines||Techniker Krankenkasse|
Our members are willing to share openly and in a structured manner how they will further increase the value of their service organizations.
Comments by some members:
"The benchmarking community is an excellent resource for internal discussions on the future of our HR shared services and HRIT."
Thomas Oploh, Head of HR Payroll Management
Elke Nigge, Head of HR Processes
"The benchmarking community enables us to exchange in-depth information on processes in the area of personnel services. We can use the knowledge gained to identify and actively address potential and development opportunities in our company."
Nils Brombach, Payroll Accounting/Pensions
SMS group GmbH
"The benchmarking community has become an important tool for my team and me in the further development of our HR services. The results of the benchmarking and the other exchange formats give us a valid orientation and are very helpful in coordinating with our internal stakeholders."
Jordan von Kröcher, Ltr. Human Resources Competence Center
Download project overview
Events / news
14 August, 10.00 a.m.
Workgroup Automation of Shared Services: Virtual meeting to coordinate the actual assessment and kickoff of the RPA Assessment
14 August, 11.30 a.m.
Workgroup Operational Excellence: Virtual meeting to select the HR admin processes to be discussed at the next live meeting
23 August to 05 September
Quality assurance of benchmarking data
30 September to 02 August
Evaluation event 2019 at the Steigenberger Hotel Hamburg
9 October, 09.30 a.m.
Workgroup "HR Admin in the Cloud": Live meeting in Cologne to refine the standard data model and to develop a standard process split between Admin (cloud) and Payroll (on premise)
Participation fees and contact
Participation fees in the HR Service Community 2019 / 2020
|Module / packet||1 year||2 years|
|Payroll accounting||7.500 €||14.000 €|
|HR administration||7.500 €||14.000 €|
|Time management*||3.750 €||7.000 €|
|Payroll accounting + time management*||10.000 €||19.000 €|
|Payroll accounting + admin||13.500 €||25.000 €|
|Payroll accounting + admin + time management*||15.000 €||28.000 €|
|Set-up (one-off)||1.200 €|
- Setting up new participants
- Individual instruction in survey documents (questionnaires and process definitions)
- Hotline in the survey phase
- Individual quality assurance of benchmarking data
- Result report and discussion
- Evaluation event two days incl. best practice exchange on the topics selected by the community (two persons per company)
- Participation in all other community events (above all: working groups) when booking a benchmarking module
*In 2019/2020 we will not charge any end-to-end process costs for time management. The focus will be on a comparison of current rules, roles, processes and technology as well as an exchange of development perspectives for this function.
Neuer Wall 2-6
+49 174 9909960