A strong relationship between the Human Resources and Finance departments is important to the success of your business. These departments are responsible for the two things that are most important to executives; their profits and their people.
"80% of CFOs and CHROs say their relationship has become more collaborative in the last three years." EY Report - Partnering for Performance: the CFO & HR
If both departments work together there is a lot they can learn from each other.
1. THE HUMAN SIDE OF BUSINESS
HR can provide Finance with insights into personnel decisions that could potentially lead to legal action or poor employee morale. HR can be an advisor that helps Finance look beyond just the revenues and expenditures of the business.
2. SEEING BEYOND THE ROI
Not all success in business can be easily measured. As an example it can be difficult to determine exactly how an HR program designed to improve employee loyalty will impact profitability in the long run. However, HR can provide valuable insights into how investments in people can positively impact the business in ways that are not always immediately assessable.
3. TAPPING INTO PEOPLE DATA
HR is the people data centre within the business. They have best practices for tracking, collecting, and maintaining up-to-date people information that can be used to help the business. By partnering with HR, Finance will have access to, and be able to understand this valuable information and can use it to help influence decisions relating to performance metrics and business goals.
4. WAYS TO IMPROVE PRODUCTIVITY
HR is responsible for making sure not only that there are enough employees available to do the necessary work, but that those people have the right skills, are placed in the right jobs, are paid competitively, and receive the proper motivation and rewards. All of these elements together contribute to the business’s productivity.
Building Your People and Your Profits
When Finance and HR work as partners they support the business’s most important assets. They can successfully make decisions to manage both the financial and people side of the business. Together they can positively impact the goals and success of their company.
