A federal human resources (HR) shared services model is the centralization of high-quality, high-volume services among federal agencies to reduce redundancies, leverage economies of scale, increase productivity, and improve customer service. There is often confusion around which of the dozens of HR functions should be included in a federal shared services model. Two basic categories for functions are core and non-core.
Core functions are highly transactional, and easily standardized and duplicated. These functions are best suited for shared services. Examples of core HR functions include payroll or benefits processing and reporting.
Non-core HR functions are less transactional and more tailored to an organization’s needs, strategy and mission. Depending on the agency, some non-core functions are better suited for internal agency staff instead of within a shared services center. Recruiting, development, counseling and learning program management are examples of non-core HR functions.