The relationship between HR and finance has long been seen as a reflection of conflicting interests between an organization’s people and money. Although both functions appear to have competing priorities, they are ultimately driven by the underlying goal of achieving higher levels of performance and profitability.
With an increase in demand for strategic partnerships, companies are starting to see more collaboration between the two departments. A survey by Ernest & Young reports that 80% of 550 HR and finance professionals have spent more time working together over the past three years and, as a result, have seen an increase in productivity, engagement, and innovation.
We are here to show you the few, of the many ways, you can join forces with finance to influence your bottom-line results:
1. Reducing the company's expenses by increasing retention
While finance works to minimize operating costs, HR is finding the prevalence of high turnover to be a significant source of expense, with an average cost-per-hire of $4,129. Administer an anonymous survey on the employee experience to understand the factors driving employees to leave your company and use those results to develop a cost-effective strategy. Comparing your turnover rates and conducting a post-implementation survey can help indicate how much has changed in expenses and employee attitudes.
2. Forecasting financial impact of future workforce
When HR and finance forecast workforce and financial needs separately, they lose out on gaining valuable insight into how they influence each other. Combining your analytics can give you insight into how future headcount, salary, benefits, and other human capital needs will impact financial performance and vice versa. The more ways you can combine different sets of data, the more likely you will be able to project and prepare for the inevitable challenges that lie ahead.
3. Allocating funds to a competitive benefits program at a sustainable cost
HR may not always put into perspective the financial implications of a benefits program. Finance, on the other hand, often sees past the value it brings to attracting, engaging, and retaining the right employees. By combining your knowledge of the latest trending benefits with finance's understanding of sustainable spending, you can rest assured that the program you choose will not only enhance the employee experience but also generate an attractive return on investment for the company.
Take a look at how thousands of HR leaders are creating impactful work with their finance departments by using an HRIS such as Humi.