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:
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.
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.
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.
I’m the Director of HR at Humi, and I’m obsessed with all things people and human resources. Throughout my time working in a range of industries, I’ve learned that one thing is clear: the world of work is changing and HR professionals are leading the charge.
I believe that businesses should know their people as well as they know their product. But people are complex, and the solutions aren’t always easy. That’s how Think with Humi will help.
Written by me, this newsletter is designed to give you insight into the relevant and raw people challenges, and give you the tools to enable you to continuously to shape the future of work.
Written by a people leader, for people leaders.