HR shared services Singapore

What are HR shared services in Singapore?

The modern era of technology enables streamlined ways of doing things that are both user friendly and more effective in the business world. The human resources department benefits from this technology through HR shared services, an increasingly common approach for creating more effective service delivery for companies in Singapore. Through the centralisation of business activities and functions in a company, HR shared services not only reduces the costs of running a business, but also improves customer satisfaction. This article will discuss HR shared services in Singapore and its suitability for your business.

What are HR shared services in Singapore? 

HR Shared Services refers to a centralised and widely shared feature of the concentration of administrative HR activities. A number of things can be covered through the use of this shared service, ranging from administrative activities (e.g. payroll outsourcing Singapore, recruitment administration, pension administration, etc.) to providing information and guidance, or high-level advisory and technical support.

For example, a company secretary in Singapore has many responsibilities such as taking minutes of the annual general meeting.

They also need to ensure efficient management of a company, and hence by outsourcing some of their workload to HR shared services, they would be able to better focus on key internal business operations.

Additionally, HR Shared Services is one of the most sought-after services offered by many companies of different sizes in Singapore with the primary objective of improving and optimising operational efficiency.

Although there is no hard data showing how many companies are using the HR Shared Services approach, there are case studies showing how effective the service is.

It will greatly lighten the workload off your company’s administrative staff, especially if your company is a start-up or small business.

Pros and cons of HR shared services


Consolidates HR tasks and software

Organizations may have their HR operational roles replicated across different departments, but as business expands, this can become expensive and highly inefficient. The company secretary in Singapore may eventually share responsibilities with a department manager, and this reduces the productivity of the company. HR shared services merges HR roles into a single management system resulting in greater flexibility and cost savings.

Strategy becomes more of a focus for HR

Utilizing HR Shared Services helps businesses focus on other aspects of your business, including training and upgrading your current employees. As HR shared services will help you in recruitment, your company can focus on growing and developing talented employees.

This is very important for the company’s long term growth strategy to ensure an informed pool of talent and a stronger workforce. It will allow your employees such as the company secretary in Singapore to not waste their time and effort on recruitment, but on other tasks which can reap long term benefits.

Improves employee and customer experience 

Employing HR Shared Services generally results in a faster and more accurate turnaround for customer requests and questions. When all the company data is centralized, employees will find it more efficient to attend to customers, thus improving the customer service experience.

Not only do they benefit customers, an organized workflow can improve employees’ work satisfaction as well. It can be used to provide more consistent, timely, accurate high-quality information and advice to employees. With their work experience improved, the productivity of employees will improve as well. 

Reduces operating costs

Rather than increasing the number of your HR employees, outsourcing your HR work to HR shared services helps to reduce operating costs, and save time as well. If you are a small business, it is unlikely that you can afford to hire more people just to do your HR work, which may not be that much in the first place. In addition, you will also need to train the HR employees, which takes up a lot of your time. It is much more cost-efficient to outsource to an agency offering HR shared services, as they can assist you in your HR work whenever you need.

Disadvantages of HR shared services

There are not many disadvantages to using HR shared services, but a potential problem could be suitability for your company.

HR shared services aim to alleviate administrative loads off your company by outsourcing them to an external agency. However, some companies may find it difficult to outsource their work.

In addition, HR shared services are about consistency. In other words, the processes for each part of the business are completed in the same way.

Reality is that one process may be productive for a number of entities, but not all. This means that shared resources can have a negative impact on one part of the business while at the same time supporting another.

Therefore, be sure to speak with the HR shared services agency to discuss whether your company is suitable for this system.

Do you need HR shared services?

Applying HR shared service strategy needs some real thought about what the leadership of the organisation wants to achieve.

If your company is a small business or a start-up, HR shared services is likely to be extremely helpful in streamlining your administrative work and reducing business operations cost.

As administrative workload can vary greatly depending on your type of company, engaging an agency offering HR shared services will be helpful as you can simply outsource the work to them whenever you need. 

In addition, the agency offering HR shared services can also help you recruit suitable people for your companies. As a start up, positions such as the company secretary in Singapore play a myriad of roles in the company, and hence should be held by capable and experienced candidates.

HR shared service agencies can help you source and recruit people upon your request, or even offer to outsource business operations outside of HR to their own teams.

Implementing HR shared services in Singapore

In order to successfully implement HR shared services in your company, you can consider completing the following tasks below and conveying them to your HR shared services agency:

  • Set clear objectives and your key performance indicators.
  • Establish a model or system of HR work that is best suited to your organisation.
  • Moving to a shared service requires a review and re-development of HR processes to maximise the ability to deliver a more streamlined, people-driven service.
  • Clarify the role, responsibilities and accountability of the agency offering HR shared services
  • Piloting and gradually transferring activities can help to keep up the momentum for change, minimise disruption to business and identify early problems. This is also a key opportunity to validate existing data before it is transferred to the new system.

Importance of HR Shared Services

HR shared services can bring great benefits to your company. These services will be highly appreciated by your in-house HR team. Below are four reasons why you should acquire HR shared services for your company. 

#1 – Combines all HR tasks and staff

The number of employees grows when the company grows. For that reason, company employees are duplicated to cover the additional operational tasks. That is also the case with the HR team. However, having duplicated HR operational functions can lead to costly expenses and ineffectiveness. This can also cause confusion and redundancy. Therefore, the company will need HR shared services. 

The HR shared services will consolidate your HR operational functions. As a result, your company will only have one central HR team. Other laborious tasks can be covered by the HR shared services. This will not only save money, but also promote work efficiency in the HR department.

#2 – Consistent HR operation work

 HR employees are not permanent workers. There will be a time when HR work will be turnover to a new recruit. HR employee turnover is a long process. It will take time before the new staff members get acquainted with the HR operations. Retraining an old HR staff to learn new tasks can be time-consuming. This delay can cause the company and other employees to suffer. 

 However, if the company uses HR shared services, there will be consistency in HR operation work. An HR shared services team can work with your company in the long run without any disruption. Even if the company grows, the outsourced HR team can add workload without interrupting the existing operational process.

#3 – HR efficiency in providing employee needs

 The HR department is responsible for managing your company’s most reliable resources, the people. Therefore, they are a service provider for the other employees in the other departments of the company. They are accountable to provide quality employee services. If your HR team is doing many time-consuming tasks, they might not be able to provide the quality employee services. As a result, the employees will be dissatisfied and unproductive.

 With the help of an HR shared services, the in-house HR team will not be loaded. They can now focus on giving efficient services towards the employees. They can accommodate their needs in the company and find solutions to make the work environment more favorable. Thus, your employees will be satisfied. 

 #4 – In-house HR team can focus on strategic HR tasks

 Your in-house HR team may be efficient now. However, their work quality may suffer a decline if they remain to be small. This can also be troublesome if your HR team is doing numerous repetitive tasks all the time. 

 That is why it is important to avail HR shared services to help your in-house HR team. You can have the time-consuming operational tasks such as payroll processing outsourced. The outsourced HR team is a group of experts that can handle these laborious tasks. As a result, your in-house HR team can focus on developing the skills and productivity of the other employees. They can also focus on researching ways to retain employees in the company.



HR Shared Service is a strategic way to deliver HR-related services to an ever-growing staff base and can be used to eliminate redundant staff, reduce costs, improve productivity and increase customer satisfaction. While hiring competent employees is important, sometimes your company does not have sufficient resources to invest in recruiting and training another employee just for administrative work. Your company secretary in Singapore also should not be burdened with additional HR work that is out of their job scope.

This is where HR shared services come in. Not only are they more cost efficient, but HR shared services will help to improve the productivity of your business operations, HR shared services will ensure that all HR work is completed in a timely manner.