Case Study: Co-operative Financial Services (CFS) achieves 20% HR cost reduction and improved payroll accuracy with IBM

HR Operations improve value, quality and flexibility

Co-operative Financial Services (CFS), part of The Co-operative Group and serving around 6.5 million customers with an HR population of about 7,500, faced fragmented HR systems, paper-based/manual processes and an outsourced payroll linked by batch interfaces that reduced timeliness and accuracy. The business needed to cut costs, improve service quality, support talent attraction and development, and gain reliable management information — so CFS engaged IBM and selected Oracle E‑Business Suite (Human Resources) as the target platform.

IBM implemented a transformed HR operating model—bringing payroll in-house, deploying Oracle E‑Business Suite, introducing self-service and tiered shared-services support, and hosting/supporting the solution—delivered in 22 weeks. The project produced measurable gains: around 20% cost reduction in HR Operations (over 8% in year one with 15–20% expected as technology embeds), more accurate payroll, stronger management information and reporting, reduced paper administration, and a flexible platform for e‑recruitment and performance management. IBM’s work also improved service consistency and integration flexibility for future mergers.

Co-operative Financial Services (CFS)

Kevin Donnelly

Functional Leader, HR Operations