HR Shared Services Strategic Plan for Financial Firms

Introduction to HR Shared Services

One of the unmistakable trends emerging and reshaping the field of human resources is the adoption of a "shared services" framework. A defining characteristic of these shared services frameworks is a clear mission and vision for the department — specifically, how that iteration of human resources will be used to assist and empower the organization through effective HR practices and procedures. This may strike some as corporate self-aggrandizement. However, the connections between employees and the organizations they work for are numerous and consequential: earning a livelihood, accessing benefits, participating in corporate culture, and maintaining a healthy work/life balance, among others. This report presents a hypothetical organization and outlines how its strategic plan and shared services framework could and should be structured.

Acme Financial Services Overview

The hypothetical company used for this report is Acme Financial Services. To provide context, the company must define who it is, what it does, whom it serves, and how it measures success. In terms of what the firm does, it offers check-cashing services and facilitates the transfer of money between parties — similar to how Western Union operates — both domestically and internationally, subject to applicable limitations and fees. The target market consists of individuals who need to send or receive money or cash checks, or both. Key customer segments include people with family abroad (for example, in Mexico or Canada), international students studying on visas, and individuals who do not have bank accounts for any number of reasons. Acme could also expand into pay cards for those who are unbanked or prefer not to use traditional banking, though such products carry their own drawbacks (Bell, 2013).

Measuring success at Acme would largely come down to customer satisfaction. That satisfaction would be driven primarily by the speed with which transferred money reaches its destination and the reasonableness of fees for both money transfers and check cashing. As long as costs remain competitive and transfers are processed promptly, satisfaction should remain high. If either variable falls out of alignment with customer expectations, satisfaction will decline — and whether that leads to customer attrition depends heavily on competitor offerings and pricing. With this in mind, Acme's purpose statement is as follows:

"Acme Financial Services understands that people want a low-cost way to receive and send money. As such, we offer competitively priced services intended to facilitate people sending money to other people or receiving money from those sending it to them. We also allow people to cash their work or government checks at a rate that is reasonable for everyone involved."

Executive Summary

Acme Financial Services operates within two distinct niches of the money-movement industry. It helps individuals cash checks when they are unable or unwilling to open a bank account, collecting a nominal flat fee for the service. Simultaneously, it facilitates the sending and receiving of money in the manner of Western Union. In doing so, Acme fills a genuine need without exploiting the customers who depend on it. Unlike payday loan companies and similar institutions that profit by overcharging financially vulnerable individuals, Acme deliberately avoids that model. Its strategy is built on high transaction volume, customer trust, and nominal fee margins rather than on extracting maximum fees from those in financial distress (White, 2012).

Strategic Contribution and Organizational Structure

When considering strategic contribution at a firm like Acme, it must be recognized that while clear lines of authority are essential, the input and feedback of all personnel matters greatly. A strictly top-down approach is less effective than one in which every employee has a voice in the feedback process and all reasonable suggestions are genuinely considered, regardless of who offers them or how. Even so, designated decision-makers are necessary, and at least one representative from each major functional group — human resources, accounting, customer service, information technology, and any other core department — should have a seat at the leadership table (IBM, 2016).

Employees should feel empowered to offer feedback, but they must also understand that compliance with established decisions and processes is expected. Management, in turn, must not allow power vacuums to form. Expectations must be clearly communicated, the reasoning behind processes must be explained, and consequences for non-compliance must be defined. There will always be exceptional circumstances, and a zero-tolerance policy that admits no exceptions is rarely wise. However, exceptions should be rare and must be supported by specific, documented justification. This is especially true of the HR Shared Services department. Employees in similar situations must be treated consistently and without deviation unless circumstances genuinely require otherwise (Lavoie, 2016).

Personal Credibility and HR Ethics

Consistency — treating similar situations in similar ways — leads naturally into a discussion of credibility. Integrity must be central to any business operation, and this is particularly true of the human resources function and those who enforce it. The reasons are straightforward. First, honesty, ethical behavior, and sound judgment are simply good business practice. This applies to human resources as much as to any other department. While there are legitimate circumstances in which certain information must not be disclosed — for legal or ethical reasons — the default posture should be openness and transparency in all routine matters. As long as a job is performed properly, by the book, and with genuine attention to quality, honesty should rarely create problems.

Second, credibility with customers must be maintained. Employees and leaders at Acme should fulfill customer requests within the boundaries of procedure and law, provide prompt confirmation of completed actions, and respond swiftly and constructively when problems arise. If a customer identifies an issue, the nature and scope of that issue must be determined and resolved as fully as possible. If the customer is mistaken, the situation should be clarified diplomatically. If an Acme employee made an error, the employee who becomes aware of it should take responsibility for making it right, escalating to management when necessary. The approach throughout should be transparent and solution-focused.

Third, and most critically for the HR function specifically, even the appearance of bias, unfairness, or ethical impropriety can have serious consequences — from reputational damage to litigation. If one candidate is chosen over another for a promotion, legally sound and documented reasons must exist for that decision. When rationales are unclear or absent, rumors and accusations of wrongdoing tend to fill the vacuum. At the same time, the HR department must carefully guard sensitive personal information. Records related to hiring, promotion, disciplinary actions, addresses, and Social Security numbers must be strictly protected. To maintain credibility and legal standing, the HR department should observe the following principles:

• All records related to hiring and promotion decisions must be created, retained, and periodically reviewed by qualified legal counsel to confirm that decisions are made for lawful reasons. For example, passing over a woman for promotion because she has childcare responsibilities, or using classist or racist language in any professional context, are serious legal and ethical violations (SHRM, 2016).
• HR-related information is strictly need-to-know. Discussions about sensitive employee information — such as Social Security number updates — should involve only the employee and the authorized HR representative handling the matter (SHRM, 2016).