Does your organization utilize HR to its fullest potential? Does HR have a say when making strategic internal moves? A true partnership between HR and finance is neither common nor easy to establish. But a good working relationship between the two will drive business because talent represents the largest single investment for most organizations. Hence, HR must be viewed through a quantitative lens, which means understanding how we get value out of the money we spend.
Honestly, I believe that there is a connection between HR and finance. They are not only dependent on each other for various processes such as payroll, but also the majority of expenses are related to people and hence there is a natural fitment between HR and finance, whether they work separately or together.
Happy people make a more productive workspace leading to higher performance and eventually higher profitability. This connection needs to be understood. No one would like to work in a tense and monotonous environment. The workplace is a second home to many people. Therefore, workplace relationships and value systems are essential. HR understands not only this but also the pulse of the organization—what employees need, how to drive engagement, culture, and employee satisfaction. The key is to translate this into productivity with the help of the CFO, who can add expertise in designing and monitoring specific metrics without getting stuck on numbers.
Hence, when it comes to building an effective HR/Finance partnership it’s important to have trust and not ego. “It’s not about being right.” While HR tends to focus on employees and finance on business, the wonder will happen when the two departments start thinking about things together.
