What Is HR Service Delivery (HRSD)?

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HR Service Delivery (HRSD), 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:

  • 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.
  • 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
  • ServiceNow rolled out its HRSD solution internally to its own employees, and realized the following benefits, according to an internal ServiceNow assessment of HRSD’s benefits:

    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.

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.

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.

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.

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Business Case

According to Forrester Consulting’s 2017 The Total Economic Impact of ServiceNow report, ServiceNow customers benefit from a 20% increase in IT productivity and enjoy, on average, a 195% ROI and payback in less than nine months.

While Forrester provides numerous benefits and statistics quantifying ServiceNow’s ROI, businesses should also develop a customized business case for their own organization. Crossfuze can create a detailed ServiceNow business case for any qualified organization that requests one.

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