OPM Launches Governmentwide HR Shared Services Center
The Office of Personnel Management (OPM) launched a new government-wide shared services center for human resources.
The new HR Shared Service Center is available to agencies on a voluntary, fee for service basis.
The goal is to “modernize and streamline resource service delivery across federal agencies” by reducing “fragmentation” and allowing agency staff to focus on their mission rather than administrative work.
“This Shared Service Center is a milestone in our effort to streamline operations, reduce duplication, and deliver high quality service across government. With the expertise and modern HR technology we have at OPM, we are well positioned to make that vision a reality,” said OPM Director Scott Kupor.
HR Operations and Services
According to OPM, the shared service center will provide “state-of the art full scale HR operations” including recruitment, benefits management, leave administration, performance management, onboarding, payroll, and other functions.
Also available are HR strategy tools for workforce planning and human capital strategy. Agencies can opt for the full package or can choose select services.
At least eight federal entities indicated they will use the new service including the Department of Housing and Urban Development (HUD), the Department of Veterans Affairs Office of Inspector General (VA-OIG), the Office of Government Ethics (OGE), and the Consumer Financial Protection Bureau (CFPB). It’s expected to take six months to fully migrate agencies into the shared services center. Implementation is expected for fiscal year (FY) 2027.
The shared service center also plugs into the Trump Administration’s broader push to reform HR through its Federal HR 2.0 plan. The core feature of that plan is a transition into a single-unified human capital management platform across the federal government within the next two years.
One unnamed HR expert told Federal News Network that the shared services approach is a “sensible” idea, especially considering some 7,600 federal HR managers were separated from their jobs in the past year. However, the expert noted it raises questions on issues like what will happen to existing shared service operations at places like the National Finance Center and Interior Business Center.
“The sooner they can be transparent about how they intend to approach these topics, the better,” noted the expert.
