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Human Resource Shared Service Centers are introduced by organizations with the aim to create value for employees and managers. Although several studies uncovered the value potential of HR shared services (e.g. possibilities for reducing costs, improving HR service quality and increasing the strategic contribution of the HRM function), little research has been done that explains how the value of HR shared services is created. Low levels of perceived value may have undesirable consequences such as employee dissatisfaction, reduced levels of employee commitment, and poor service quality for external clients. Therefore, the research presented in this thesis intends to explain the value of HR shared services for their end-users, that is, employees and line managers. Specifically, this thesis (1) explores the most essential characteristics of HR shared service centers, such as provided HR services, control mechanisms, and provider–client interactions, which are considered to provide necessary conditions for value creation, and (2) tests the mechanisms through which both HR shared service centers and their end-users contribute to the creation of HR shared service value. This thesis claims that it is neither the provider nor the clients and end-users of HR shared services, but the interactions among them that explain the success of HR shared services. In particular, the quality of the (knowledge) resources brought to service delivery processes by both HR shared service centers and their end-users influence the perceived value of HR shared services for employees and line managers. This thesis will benefit practitioners and organizations that want to understand how the benefits of HR shared services can be realized. Academics and researchers will find a contribution towards understanding the how and why of the integrated character of HR shared service value creation

Beyond shared savings : a multilevel analysis of the perceived value of HR shared services