HR Shared Services: How It Works for Singapore Businesses
- HR shared services is a service delivery model that centralises recurring HR activities for greater consistency, efficiency, and scalability.
- In Singapore, HR shared services are evolving through technology, automation, and employee self-service to improve HR service delivery.
As a business grows, HR administration becomes increasingly complex. Payroll, leave, claims, employee records, onboarding, statutory requirements, and employee queries all need to be handled consistently.
Yet HR functions in Singapore continue to spend substantial time on operational work.
At the same time, 63% of survey respondents reported low or no levels of digitalisation across their HR processes, highlighting the gap between growing operational demands and the way HR processes are delivered today.
This is where HR shared services can become an alternative operating model. By centralising recurring HR activities, organisations can create more consistent service delivery while giving HR more capacity to focus on workforce and business priorities.
The Singapore government has recognised the value of shared HR services for SMEs for more than a decade, although the model has evolved considerably with cloud HR technology, employee self-service, and automation.
This article will explain how HR shared services work, which HR activities can be centralised, and how to implement a more efficient service delivery model.
What Are HR Shared Services?
HR shared services are a service delivery model that centralises recurring HR activities into a dedicated function, team, platform, or external service provider.
Instead of handling every request separately, routine HR activities follow standardised processes with clear responsibilities and service channels.
Employees and managers can access HR services through a centralised function, while strategic HR partners and specialist teams focus on more complex and business-critical priorities.
Shared services typically handle high-volume, repeatable and process-driven activities. Think payroll processing, leave approvals, employee record updates and answers to common policy questions.
This leaves strategic HR partners and specialist teams free to concentrate on higher-value work, such as workforce planning and talent development.
Consider a simple request: an employee needs to update their bank details before payday. In a traditional setup, the request goes to whoever they know in HR, gets keyed in manually and is confirmed over email.
In a shared services model, the employee submits the change through an HR system. It follows an approval path, and the payroll data updates without anyone retyping it.
The important idea is separation. Transactional work is handled where it can be done consistently, while judgement-heavy work stays with people who understand the business context.
HR Shared Services vs Traditional HR Operations
The clearest way to understand the model is to compare it with how HR administration often runs today.
| Traditional HR Operations | HR Shared Services Model |
|---|---|
| HR staff handle requests individually | Requests follow standardised workflows |
| Processes may vary by person or team | Processes are standardised |
| Employee information can sit across different files | Data is centralised |
| HR spends time on repetitive administration | Routine requests can be automated or self-served |
| Limited visibility into service volumes | HR can track requests and service metrics |
| HR capacity is consumed by administration | More capacity for strategic HR activities |
The difference is not only about speed. It is about whether HR work depends on individual people or on a repeatable system.
Most organisations don’t switch overnight. Many sit somewhere in between, with some processes standardised and others still handled through email, spreadsheets and personal follow-ups.
Read also: Human Resources Management in Singapore: A Complete Guide
Why HR Shared Services Matter for Organisations in Singapore
For many HR teams in Singapore, the challenge is rarely a lack of effort. It is that recurring administration competes with everything else for the same limited time.
This usually becomes visible at a certain stage of growth. Informal ways of working that felt efficient at 20 employees start to strain at 80. Three benefits stand out.
Reduce the Administrative Burden on Small HR Teams
In smaller organisations, HR often has to balance many responsibilities at once. A typical week can include:
- Payroll administration
- Employee records
- Leave and claims
- Recruitment administration
- Onboarding
- Employee queries
- Compliance-related administration, such as CPF contributions and employment documentation
Singapore has recognised the operational burden of HR administration for SMEs for more than a decade.
A 2014 KPMG HR Manpower Study, cited by SPRING, found that SMEs spent almost half of their time on operational HR matters, including payroll, claims, recruitment and training administration.
In response, SPRING introduced an HR Shared Services initiative in 2015, giving SMEs access to shared HR systems and services.
That study is a historical reference point, not a description of today’s SMEs. But more recent research shows the pull towards operational work has not disappeared.
The same research found that 63% of surveyed HR professionals report low or no levels of digitalisation across their HR practices. Its diamond-shaped model points to a target allocation of 20% administrative, 60% core and 20% strategic work.
Shared services are one practical way to move towards that balance.
Create More Consistent HR Service Delivery
Consistency becomes increasingly important as an organisation adds employees, departments, or locations. Without standardised processes, the same HR request may be handled differently depending on who receives it.
Shared services establish common workflows, approval processes, employee records, HR policies, payroll procedures, and reporting structures. This makes it easier to define how an HR request should be submitted, processed, escalated, and completed.
Technology can strengthen this consistency by applying the same workflow every time.
For example, a leave request can automatically follow the required approval path rather than depending on separate email instructions.
Give HR More Capacity for Strategic Work
When recurring administrative activities are structured and centralised, HR can spend less time manually processing routine requests. This creates more room for activities that require business context, judgement, and direct collaboration with managers.
These activities can include workforce planning, talent development, performance management, organisational design, employee engagement, and succession planning. The objective is not to remove HR involvement, but to direct HR capacity toward work where human judgement creates greater value.
Read also: HRIS vs HRMS vs HCM: What Singapore Employers Actually Need
What HR Functions Can Be Managed Through Shared Services?
Shared services are generally most suitable for activities that are recurring, process-driven, and relatively easy to standardise.
The exact scope depends on the organisation’s size, operating model, technology, and internal capabilities.
| HR Function | Typical Shared Service Activities | Potential Value |
|---|---|---|
| Payroll | Payroll processing, payslips, payroll data administration | More consistent payroll operations |
| Employee Data | Employee records, updates, documentation | Centralised and accessible information |
| Leave & Attendance | Leave applications, approvals, attendance records | Less manual administration |
| Claims | Claims submission and approval workflows | Standardised processing |
| Onboarding | Employee documentation, onboarding workflows | More consistent employee experience |
| Offboarding | Exit documentation and administrative processes | Better process control |
| HR Queries | FAQs, employee requests, HR helpdesk | Faster response to recurring questions |
| Reporting | Standard HR reports and workforce data | Better access to HR information |
| Compliance Administration | Recurring statutory and HR administration | Reduced manual workload |
Not every activity should be moved into shared services. Processes that require significant business judgement or close stakeholder interaction may remain with HR business partners or specialist teams.
The aim is to create a practical division between routine service delivery and activities that require deeper expertise or strategic involvement.
How Does an HR Shared Services Model Work?
A shared services model can combine people, processes, and technology. The operating model determines who handles each activity, while technology can make the process easier to execute and monitor.
Centralised HR Operations
One team manages recurring HR processes for the whole organisation. Instead of each department handling employee administration independently, requests are routed through a central HR operations team.
This can be an internal team, a dedicated platform, or an external provider. What matters is that ownership is clear and processes are consistent.
For example, a growing company with three departments might route all leave, claims and employee record updates through one HR portal instead of three different habits.
Employee Self-Service
Employees can handle simple requests themselves through an HR system. Common examples include leave applications, payslip access, personal information updates, claims, and HR documents.
Self-service does not eliminate HR support. Instead, it allows HR teams to focus on requests that require review, exceptions, or professional judgement.
HR Technology and Automation
Technology can support workflows, approvals, employee data, notifications, payroll, reporting, and HR service requests. An HRIS or HRMS can therefore act as an important technology layer within a shared services model.
In Singapore, this usually means a platform that handles local payroll requirements such as CPF alongside employee data and attendance.
Mekari Talenta, for example, brings HR administration, payroll, attendance and workforce insights into one integrated platform.
Strategic HR Partners and Specialist Teams
HR business partners and specialist teams can remain responsible for business-facing and strategic activities. Shared services handle recurring transactions, while specialist teams provide expertise where deeper knowledge is required.
In this model, shared services support day-to-day HR operations, while HR business partners work closely with business leaders on workforce priorities.
Centres of Expertise can then provide specialised support in areas such as talent, compensation and benefits, learning, and organisational development.
The structure can vary depending on organisational needs. For smaller organisations, some of these responsibilities may be handled by the same HR team rather than separate departments.
How to Implement HR Shared Services in Singapore
Implementing shared services does not necessarily mean creating a new department immediately.
A practical approach is to start with the processes that create the most repetitive work and gradually standardise how they are delivered.
1. Map Your Current HR Processes
Start by documenting how HR activities are currently handled. Identify repetitive activities, manual processes, duplicate data entry, employee queries, and approval bottlenecks.
Look at the full process rather than only the final task. For example, payroll administration may involve collecting employee changes, checking attendance, confirming approvals, calculating payroll, reviewing exceptions, and producing payslips.
2. Identify What Should Be Centralised
Prioritise high-volume, repeatable processes first. Payroll inputs, leave, claims and employee record updates are usually strong candidates because they follow clear rules and happen every month.
Leave judgement-heavy work, such as sensitive employee relations cases, with specialists. A shared service is designed for consistency, not case-by-case discretion.
A useful test is whether a task happens often, follows clear rules and needs little discretion. If it does, it is a strong candidate.
3. Standardise HR Policies and Workflows
Before automating anything, establish one consistent process. Automating an inconsistent process only makes the inconsistency run faster.
Agree on approval levels, documentation requirements and turnaround times. Make sure they reflect current policies and local requirements, including CPF and Employment Act obligations.
4. Choose the Right Technology or Service Model
Assess whether the organisation needs an HRIS, payroll software, employee self-service, an HR helpdesk, an external HR service provider, or a combination of these. The right option depends on which processes need to be centralised and how much work should remain internal.
Look for a platform that connects employee data, payroll and attendance rather than adding another silo.
Mekari Talenta combines core HR, payroll management with CPF calculation, and attendance management in one place, alongside employee self-service and multi-branch management.
Read also: 10 Best HR Software in Singapore to Reduce 30% Administrative Costs
5. Define Ownership and Escalation Paths
Shared services work best when everyone knows who owns each type of HR request. Define who receives a request, who is responsible for resolving it, and when it should be escalated to another team.
For example, routine requests can be handled by the shared services team, while more complex matters can be referred to a strategic HR partner or specialist. Issues that require senior approval can then be escalated to the appropriate leadership team.
Set expected response times for each stage to prevent requests from being delayed without a clear owner. Once the process is established, communicate it clearly to employees and managers and review its effectiveness after the first few months.
6. Measure Service Delivery
Once shared services are in place, measure whether the model is improving HR operations.
Useful metrics include HR request volume, response time, resolution time, payroll accuracy, employee self-service adoption, process completion time, and employee satisfaction.
These measures help identify bottlenecks rather than relying on assumptions about efficiency.
Over time, the data can also show which processes should be automated, redesigned, outsourced, or kept with specialist HR teams.
Enable More Efficient HR Shared Services With Mekari Talenta
A well-structured HR shared services model can help businesses centralise routine processes, improve service consistency, and give HR more time to focus on strategic workforce priorities.
The right technology can make this model easier to manage by connecting employee data, workflows, payroll, attendance, and self-service in one system.
Mekari Talenta provides an AI-centric HCM platform that brings core HR, payroll, time and attendance, recruitment, and talent development into one place.
With Singapore-ready payroll capabilities, employee self-service, workflow automation, and AI-powered features, Mekari Talenta helps simplify recurring HR processes while giving teams greater visibility into their workforce.
Ready to streamline your HR operations? Get a personalised demo for your HR needs with Mekari Talenta.
References
- Institute for Human Resource Professionals. (2025). Driving the people agenda: Building HR capabilities for the future of work.
- SPRING Singapore. (2015, April 21). Factsheet on HR shared services initiative. National Archives of Singapore.
Frequently Asked Questions (FAQs)
Is HR shared services only suitable for large organisations?
Is HR shared services only suitable for large organisations?
No. The model can be scaled according to the organisation’s size and operating structure. A smaller company does not need a dedicated shared services centre to apply the concept; it can centralise selected processes, use employee self-service, or combine internal HR operations with external providers.
Can HR shared services be outsourced?
Can HR shared services be outsourced?
Yes. HR shared services can be delivered internally, externally, or through a hybrid model. An organisation may keep activities such as employee relations and workforce planning internally while outsourcing selected administrative processes such as payroll processing or HR administration.
What is the difference between HR shared services and HR outsourcing?
What is the difference between HR shared services and HR outsourcing?
HR shared services describe how HR services are organised and delivered, while outsourcing describes who performs the work. Shared services can therefore be delivered by an internal team, an external provider, or a combination of both. The choice depends on factors such as internal capability, cost, process complexity, and the level of control required.
How does HR shared services affect employees?
How does HR shared services affect employees?
Employees may have a clearer and more consistent way to access HR services. Instead of contacting different HR staff for routine requests, they can use standardised channels or self-service tools for activities such as leave, claims, payslips, and employee information. More complex matters can then be escalated to the appropriate HR specialist.
What should a company do before setting up HR shared services?
What should a company do before setting up HR shared services?
Start by reviewing how HR processes currently work and identifying where time is spent on repetitive or duplicated activities. The organisation should then determine which processes can be standardised, who should own them, and what technology or external support is required. Starting with a small number of high-volume processes can make the transition easier to manage.
