As planning for U-M’s new Shared Services Center moves forward, it has become clear that there will be little, if any, need for a reduction in force.
The university is in the process of talking with affected employees across campus about the financial transaction and human resource functions that would move to the new facility. Those discussions will be completed by the end of this week.
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Currently about 325 positions across campus are dedicated to the types of work that will be done by about 275 people at the Shared Services Center. The reason a reduction in force may not be needed is that many of those 325 positions currently are vacant or filled by temporary workers, as units planned ahead for the transition.
Laurita Thomas, associate vice president for human resources, also said the latest analysis shows the current salaries for affected employees are within the salary ranges for positions at the new center, allaying concern that employees will face pay cuts. Current data does not indicate the need for pay reductions, Thomas said.
Concerns about how the shared services plan is being implemented at LSA, the university’s largest college, were heard at Monday’s meeting of the Senate Advisory Committee on University Affairs.
Kathleen Canning, chair of the Department of History, presented concerns outlined in a letter signed by 18 LSA department chairs and directors. Among their concerns were that the rollout occurred too rapidly and was poorly communicated without transparency, she said, adding the process has led to fears of staff layoffs and pay reductions.
SACUA Chair Karen Staller said the group would discuss the concerns with Provost Martha E. Pollack when Pollack meets with the faculty governance system’s executive panel Nov. 25.
Combining resources to achieve lower costs and enhance service is the aim of the new center, scheduled to open in April 2014. The goal for the center is to save $5 million to $6 million in the first three years with increased savings expected over time. The effort is part of the university’s overall strategy focused on cost containment to keep U-M affordable to students, and to protect resources for the university’s core missions of teaching and research.
The migration of work and employees from campus units to the Shared Services Center will occur gradually, starting next April. The center should be fully staffed by October 2014.
Staff jobs in the center will not be posted until all candidates among current employees have been considered. Supervisory and management positions will be posted, and internal candidates may also apply for those roles in addition to staff jobs.
The new Shared Services Center will be located on Victors Way near I-94 and South State Street.
