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About this document
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- 14 pages
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- Business Management, Public Administration
This document discusses the current situation of Caerphilly Council’s Human Resources, Training, and Payroll services. It explores the potential benefits and costs of adopting a shared service model, including infrastructure and people costs.
What's inside
- Introduction to shared services
- Current situation of Caerphilly Council's HR services
- Reasons for considering shared services
- Infrastructure costs in shared services
- People costs in shared services
- Cost allocation models
Who it is for: Students studying public administration, local government management, or shared services. (Undergraduate)
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Summary
Shared services are a way for a council to provide HR, training and payroll services. Students learn about the costs and benefits of this model for Caerphilly Council.
Shared Services Explained
Shared services are when one part of an organisation provides a service that was previously provided by more than one part. This model can help back-office functions become more flexible and customer-focused.
Caerphilly Council’s Current HR Services
Caerphilly Council currently spends £4.8 million a year on HR, training and payroll services. These services are provided by around 96 full-time staff. The cost per employee is lower than the UK average.
Costs and Benefits of Shared Services
Shared services costs can be broken down into infrastructure costs and people costs. Benefits include increased efficiency and productivity. Costs may include borrowing to fund set-up costs.
Benefits of the Proposed Model
The proposed shared service model aims to provide efficient and productive HR services. It offers expert support and helps place the workforce in the right locations.
Key terms
- Shared services
- A service provided by one part of an organisation that was previously provided by more than one part.
- Infrastructure costs
- Costs related to data transfer, server monitoring and other technical aspects.
- People costs
- Costs related to the staff providing the service, including management time.
- Cost drivers
- Factors that influence the cost of a service, such as the amount of data transferred.
- Cost allocation model
- A way of dividing up the costs of a shared service among the different parts of an organisation that use it.
- Strategic support
- Support that helps an organisation achieve its long-term goals.
Questions this document helps with
- What are the main benefits of shared services for Caerphilly Council?
- How do shared services affect the cost of HR services?
- What are the risks of moving to a shared service model?
Summary written with AI from the document's text.
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