Mohinish Sinha (who was interviewed earlier on this blog) writes in a new column in Business Standard on ways to measure the performance of HR Shared Services centers
"# The feedback from employees and the managers on the service they have received from the SSC. This could be done by rolling out a Voice of Customer satisfaction survey which would include areas such as speed of responsiveness, quality and effectiveness of service, and capabilities of service team
# The cost of various HR processes that have been placed under the SSC such as recruitment, payroll, employee data maintenance, and benefits management
# Measurement against service levels and service targets. For example, error rates, time to complete HR processes and sub-processes, and feedback on the service provided
# The level of technology and automation, including user-friendly self-service options for both employees and managers."
The first point is most important in my view. The others are ways to ensure that the satisfaction for the users increases. What actually becomes a struggle for management of these centres is the availability of a career path for employees and their perception that they are not doing "real" HR work unless they interact with employees and meet them face to face.