In a previous post with HR as the Teacher, we looked at what HR can teach Finance, now let’s turn that around and see what Finance can teach HR.
"66% of CFOs say that knowledge of people issues in the finance team is an important enabler." EY Report - Partnering for Performance: the CFO & HR
People are both a company’s greatest asset and largest expense. Collaboration between Finance and HR allows executives to see a comprehensive view of how employee engagement and productivity drive profits.
What Finance Can Teach HR About People Management
1. STRATEGIC REPORTING
The HR department has invaluable information. And lots of it! Everything from how absenteeism is affecting productivity to how overtime costs can be reduced by adding an extra shift. Their challenge is sometimes they don’t how to best pull all of their data together so that it contributes to the bottom line. Finance can help HR understand how their data can be used to detect problems, look for trends and help executives make informed decisions.
2. COST MANAGEMENT AND CONTROL
Finance can help HR with budget planning for investment and expenditures, ensuring they are making the most of the budget dollars allocated to them. Finance can also work with HR to plan for and assess high cost items like benefits and training. And they can provide advice on reporting budget line items for positions to compare actual FTE count costs against unspent dollars due to vacant positions.
3. ACHIEVING FINANCIAL OBJECTIVES
Finance is in a key position to help HR achieve its objectives. How? Well, Finance is often the primary source of an organizations overall performance data. The information Finance gathers on items such as earnings, productivity and customer satisfaction provides tremendous insight for HR into the employment and development needs of the organization.
4. CALCULATE ROI
Finance can help the HR department calculate the return on investment for things like HR programs, benefit plans and technology investments. Finance can play a key role in assisting HR to make sound purchasing decisions, especially in the area of software and systems.
Partnering for Success
By aligning your financial and talent goals, Finance and HR will drive improved results for your organization.
