Finance and HR functions need each other
Feb 14, 2011
TODAY'S HR function is becoming a sophisticated bottom-line business partner that requires more input and collaboration from the finance department than ever before.
TODAY'S HR function is becoming a sophisticated bottom-line business partner that requires more input and collaboration from the finance department than ever before.
From sharing relevant employment data to maintaining joint responsibility for projects, the HR and finance functions should be ‘great friends, not raging enemies.’
The HR department is concerned with the recruitment, development and deployment of a superior workforce. This makes the role of HR all-encompassing.
The function, not only needs to make sure there are enough employees to do a company’s work, but that those people have the right skills, are placed in the right jobs, are paid competitively and receive proper motivation and rewards.
Unfortunately, in many organisations, the HR and finance functions work in isolation.
Finance people think that their HR counterparts waste space that should be reserved for ‘valuable’ professionals.
Human resources specialists, on the other hand, think the finance function is filled with a ‘bunch of pencil-necked bean counters’ whose sole enjoyment in life comes from saying “no†to every requested project.
Like many contentious relationships, the problem between these departments is lack of understanding or appreciation of each other’s roles.
Their relationship can only improve if they take time to learn how they can support each other’s roles. Finance, more than any other function, is in a key position to help the HR section achieve its objectives. This is because in many firms, the finance function is the primary source of performance measurement data.
The information finance gathers on earnings, productivity and customer satisfaction provides tremendous insight into staffing and development needs of an organisation.
How can finance work closely with the HR people, particularly if the relationship between the two departments has been strained? A good way to start would be by benchmarking.
Look at HR practices in your company that touch the finance department and compare them with best-practice companies, then work together with HR to uncover ways to improve the whole process.
In other words, collaboration is the key. For example, the finance section can help the HR function make financially-sound business decisions by helping them calculate the return-on-investment for their programmes, practices and increasingly, technology.
By working closely with HR, the finance department will understand and take advantage of HR’s expertise in areas like recruitment, training and development, communication, motivation, dispute resolution or termination.
In the end, the best way to build the two sections’ relationship and, thus improve service to the organisation as a whole, is to open their communication lines. There is need to find opportunities for frequent communication.
When the finance function understands what HR department brings to the table, it can find ways to improve service to the function and, hence gain a greater appreciation for HR activities.
Email: eresources@consultant.com
From sharing relevant employment data to maintaining joint responsibility for projects, the HR and finance functions should be ‘great friends, not raging enemies.’
The HR department is concerned with the recruitment, development and deployment of a superior workforce. This makes the role of HR all-encompassing.
The function, not only needs to make sure there are enough employees to do a company’s work, but that those people have the right skills, are placed in the right jobs, are paid competitively and receive proper motivation and rewards.
Unfortunately, in many organisations, the HR and finance functions work in isolation.
Finance people think that their HR counterparts waste space that should be reserved for ‘valuable’ professionals.
Human resources specialists, on the other hand, think the finance function is filled with a ‘bunch of pencil-necked bean counters’ whose sole enjoyment in life comes from saying “no†to every requested project.
Like many contentious relationships, the problem between these departments is lack of understanding or appreciation of each other’s roles.
Their relationship can only improve if they take time to learn how they can support each other’s roles. Finance, more than any other function, is in a key position to help the HR section achieve its objectives. This is because in many firms, the finance function is the primary source of performance measurement data.
The information finance gathers on earnings, productivity and customer satisfaction provides tremendous insight into staffing and development needs of an organisation.
How can finance work closely with the HR people, particularly if the relationship between the two departments has been strained? A good way to start would be by benchmarking.
Look at HR practices in your company that touch the finance department and compare them with best-practice companies, then work together with HR to uncover ways to improve the whole process.
In other words, collaboration is the key. For example, the finance section can help the HR function make financially-sound business decisions by helping them calculate the return-on-investment for their programmes, practices and increasingly, technology.
By working closely with HR, the finance department will understand and take advantage of HR’s expertise in areas like recruitment, training and development, communication, motivation, dispute resolution or termination.
In the end, the best way to build the two sections’ relationship and, thus improve service to the organisation as a whole, is to open their communication lines. There is need to find opportunities for frequent communication.
When the finance function understands what HR department brings to the table, it can find ways to improve service to the function and, hence gain a greater appreciation for HR activities.
Email: eresources@consultant.com