What Is HR Service Delivery?
HR Service Delivery (HRSD), also known as HR Service Delivery, is a best-practices approach for automating and standardizing HR processes within your organization. Through HR Service Delivery, organizations are able to provide engaging, holistic HR services to employees. In particular, HR Service Delivery eliminates many of the repetitive, manual tasks performed by HR teams, helping HR teams to focus on higher-value tasks that meaningfully drive self-service improvements to the user experience.
Why Businesses Need HR Service Delivery
At a traditional organization, the HR team spends 60% to 70% of its time on routine transactional tasks, such as preparing contracts, onboarding and offboarding, and executing employee releases, according to research by the HR Trend Institute.
But expectations for HR teams have changed dramatically in recent years. Because of advances in cloud-based technology, HR professionals can use HRSD approaches to dramatically streamline routine HR tasks. Cloud-based HR solutions can help HR teams to:
Develop employee engagement programs
Expand health and wellness services
Promote diversity initiatives and eliminate workplace bias
Improve work-life balance
HR teams recognize the benefits of HRSD solutions:
A 2018 survey by G2 Crowd found that 80% of HR employees say that using HR technology improves employee attitude toward the company, and 57% strongly agree that employee engagement initiatives help their company retain productive staff.
A 2017 Gartner analysis found that effectively deploying integrated HR Service Delivery tools reduces HR administrative costs by up to 30% while delivering additional business value and risk mitigation.
Businesses also need HRSD to extend HR services to nontraditional, alternative workers, such as contract employees, work-from-home and offshore employees, and members of the “gig” economy. Even as these workers make up an increasingly large share of the overall workforce, a 2018 Deloitte study on human capital trends found that:
46% of HR employees say they do not onboard alternative workers
55% of HR employees say they do not support any training for these alternative workers
One in three HR teams is not involved in sourcing and hiring decisions for contract employees
Because HRSD is designed to be delivered remotely through personal mobile devices, HR professionals increasingly are viewing HRSD solutions to provide more consistent, high-quality HR services to their organization’s entire workforce.
Why Businesses Choose ServiceNow for HRSD
ServiceNow offers an industry-leading HRSD platform that solves the following pain points:
Eliminates inefficient manual HR workflows and processes
Provides a single access point for employees to access HR services
Securely manages employee records through their full lifecycle
Integrates seamlessly with existing HR-related systems, such as payroll, talent management, and background screening
To power its HRSD solution, ServiceNow relies on a type of infrastructure known as high-productivity application platform as a service (hpaPaaS).
In 2018, Gartner completed a Magic Quadrant analysis of hpaPaaS providers; ServiceNow emerged as one of only four industry Leaders:
The Gartner analysis of hpaPaaS identified the following as benefits of ServiceNow’s hpaPaaS solution:
Consistently scores above average in integration and quality, reliability and availability, and monitoring and management capabilities
Provides full integration capabilities with other workflows and systems
Offers separate visual development environments for no-code and low-code developers
Similarly, G2 Crowd conducted an analysis similar to the Gartner Magic Quadrant known as the G2 Crowd Grid to evaluate HRSD software solutions. ServiceNow emerged as one of only two industry Leaders among all market segments:
Meanwhile, G2 Crowd also analyzed user satisfaction ratings using a proprietary algorithm. As of early 2019, ServiceNow was the No. 1-ranked HR Service Delivery software solution.
Quantified Benefits of HR Service Delivery
Multiple studies have quantified the ROI of ServiceNow’s HR Service Delivery solution, including:
Christus Health, a healthcare organization with 45,000 employees in the U.S. and Latin America, used ServiceNow HRSD to transition from manually handling routine HR inquiries to a self-service portal and automated HR service delivery. Over a three-year period, Christus achieved a ROI of $9 million using ServiceNow HRSD.
- 4,000 hours saved annually by automating onboarding activities
- 94% increase in the speed of provisioning of IT resources to employees
- 86% employee satisfaction rate during onboarding
- $325,000 saved each year in delivering HR services
ServiceNow commissioned an independent Forrester Research ROI study in 2017 for a major healthcare organization with 20,000 employees that had just implemented ServiceNow HRSD. Over a three-year period, the company achieved a 400% ROI, reduced its HR caseload by 50%, and began handling HR cases 30% more efficiently.
Where HR Service Delivery and ServiceNow Are Headed
The market for HR technology is rapidly evolving, giving HR teams unprecedented ability to replace cumbersome manual HR processes with streamlined, automated ones.
Already, the total size of the global HR management market has surpassed $12 billion, according to a 2018 Grand View Research study.
Organizations are increasingly migrating to cloud-based HRSD solutions like ServiceNow. A 2016 market research by Information Services Group (ISG) found that:
One in three organizations with less than 10,000 employees already is using a primarily SaaS solution for HR Service Delivery.
28% of organizations of less than 10,000 employees use a hybrid on-premises/SaaS solution.
Two out of every three organizations say they will implement or are considering implementing HR SaaS within two years.