Global HR Shared Services Supports Kennametal’s Growth Aspirations

Sascha Weiss, Senior Manager, HR Shared Services, EMEA speaks with Barbara Hodge, Editor, SSON [Read also: Why Germany’s Mid-market "Motor" Is Banking on Shared Services] Kennametal is one year into a three-year implementation strategy of a global HR Service Delivery Model. As a US headquartered company, it elected to enhance an existing Shared Services model that had provided only limited services to-date in preparation of better serving its 14,000 global staff and to be prepared to scale up to support an increased headcount as the company continues to expand. As Sascha Weiss, Senior Manager, HR Shared Services, EMEA, explains, the driving force behind the move to enhance the Shared Services model was the recognition that to carry on a sustainable growth pattern, Kennametal would need to be able to rely on a robust staffing service. HR is currently aligning with the business to support additional headcount requirements, and rolling out an improved services model based on process standardization, leveraging technology, enhancing role clarity, and supporting corporate growth. While Kennametal is driving toward the new HR Service delivery model (it rolled out in the US a year ago, goes live in Asia this year, and Europe will follow next year), it has been servicing its German operations from a Bavarian center so far. "With 75% of our European employees in Germany, this was a natural choice," explains Weiss. [eventpdf] Why global HR Service delivery? Consultant group Mercer made the case to enhance the existing Shared Services model as the result of a global evaluation of existing HR processes. On the basis of their research, Mercer determined both strengths and weaknesses of the HR processes to date, and recommended an expanded global approach to the delivery of HR services. Given Kennametal’s strong growth agenda – organic as well as acquisition-driven – the company needed a strong HR partner to support it. It was also important, explains Weiss, to introduce modern strategies and structures as part of an improved personnel management approach. The approach will take the form of centralization, automation (self-service), and finally an evaluation of outsourcing opportunities. A global HR Service Delivery Model was deemed important in order to be able to make decisions on the basis of a global talent capability, says Weiss, and leverage global data management, for example. Where Kennametal’s Shared Services model differs from many others is that in its future model they do not plan to separate HR services into front office and back office [i.e., customer facing call centers versus transactional services], but will operate in a Point of Contact (POC) model, according to which an employee is responsible for fielding, answering, and providing solutions to all queries that come his or her way, covering one or more entities. In this model, if higher tier support is required for specific needs, issues are escalated to appropriate talent within the Shared Services Center (SSC) to address the customer needs timely and satisfactorily. In order to deliver a holistic HR service, the SSC collaborates with a number of dedicated Centers of Expertise (COEs), which are responsible for, among other things, developing employee training and talent management programs. While HR is establishing a global HR Service Deliver Model, it also faces the challenge of delivering regional services. One of the complexities that have arisen out of acquisitions-driven growth is the duplication of payroll vendors. As a result Kennametal has more payroll vendors than countries it operates in. The challenge lies in achieving data consistency, and the SSC team is working towards this by transferring local information onto a company-wide SAP system. Shared Services is also rolling out global processes to support consistent data, for example Manager and Employee self-service. As a result of carefully prioritizing its investment decisions, the SAP system now supports the majority of employee data, and is able to push it into the relevant local application. To support sustainable operations, the global HR strategy is targeting vendor consolidation, though this may take some time, Weiss concedes: "As the HR Shared Services project continues on its journey, this will be the next step. We have already run the business case and are currently waiting for approval to progress." Read: Why Germany’s Mid-market "Motor" Is Banking on Shared Services

Global HR Shared Services Supports Kennametal’s Growth Aspirations

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