Collaborative workforces drive modern businesses. Gone are the days of isolated departments that perform purely administrative functions. The COVID-19 pandemic and the Great Resignation made it clear that if companies want to succeed in today’s business world, they must align their business strategies with the demands of the modern workforce and an increasingly talent-driven job market. .
People want more flexible work arrangements, supportive work environments, and cultures that serve them (rather than burn them). When companies don’t provide this, the best talent leaves in favor of an employer that does.
While alarming, it is clear that the way forward is for companies to put employee retention and well-being at the top of their agendas. To accomplish this, two teams, in particular, can collaborate more intentionally: Human Resources and Finance.
It may seem like an unlikely pairing. After all, aren’t HR professionals more focused on people, while finance professionals are more focused on numbers? When investing in people equals smart business, these departments must join forces. And that’s where the Grand Alliance between HR and Finance comes into play.
Receive daily business news.
The latest stories, financing information and expert advice. Free to sign up.
Here’s what happens when HR and Finance teams work together and where they can collaborate most effectively.
Connect your employees, inspire belonging and bring your company culture to life no matter where your teams are located. Watch our three-minute video on how HiBob’s state-of-the-art HR technology platform can help you.
The case of the alliance of the great human resources and finance team
The war on talent, rising labor costs, and an uncertain business landscape are all important factors for Finance and Human Resources to work more collaboratively.
Unemployment rates are low and demand for top-tier talent is through the roof, driving up labor costs. Companies struggle to recruit the qualified talent they need. Achieving a positive return on your investment is even more challenging. More deeply, people want more from the companies that hire them, supportive work cultures, and flexibility.
When HR and Finance come together, they can share data to make better, more informed decisions. As a result, everything improves, from compensation and benefits packages to recruiting programs. Retention increases, attrition rates decrease, and bottom lines increase for a better overall ROI.
Both teams can also respond to crises more quickly and proactively (think of the COVID pandemic or the influx of cyberattacks businesses are now facing). Indeed, the pandemic is a prime example of an event that pushed finance and HR teams to shift priorities and come together to tackle new challenges, such as the shift to remote work.
Where Human Resources and Finance can come together to develop a people-centric strategy
1. A compensation package to win the war for talent
Talent is driving today’s job market like never before. People want to work for modern companies that value their mental health and well-being. Your finance and human resources teams can achieve great results by coming together to improve your compensation strategy.
Companies can win big here by developing attractive and fair compensation packages that stand out in today’s crowded marketplace. Whether it’s bolstering existing packages with more progressive benefits or benchmarking salaries against the competition, there are many ways HR and finance teams can work together to attract and retain top talent.
2. Where there is data, there are ideas
Making informed, data-driven decisions is a game changer for all businesses. In fact, a survey by Deloitte revealed that about half of top executives see better decision making as a key benefit of collecting and analyzing data.
For finance and human resources teams looking to collaborate more effectively, data is a great place to start. From employee engagement and wellbeing to performance and absenteeism, there are many meaningful metrics that teams of people can track. Add payroll numbers, salary progressions, and pay gaps, and you have data that impacts HR. H H. and finances alike.
In other words, there are many people’s perceptions that can be translated into financial ones. Hiring expenses are a great example. Recruitment is a cost. But it’s also an investment in the right people who can drive further growth. The same can be said for incentives such as benefits. They cost a certain amount to provide, but can offer high returns in the form of better retention rates and job satisfaction. When HR and finance teams analyze these expenses together, they can determine the ROI they get from each new hire.
3. Confidentiality and security issues
We live in a time where information security has never been more relevant or important. As our lives become more digitized, people want to know that their personal data is protected and handled with care.
It is also in the interest of companies to invest in data security. According to Gartner, 88% of managers view cybersecurity as a significant business risk. Even the smallest data breach is enough to tarnish a reputation, while a large one can disrupt growth or even bankrupt a company.
As finance and human resources teams deal with sensitive data (such as payroll), they have a duty to ensure that this information is stored securely. Together, finance and human resources can put systems in place to ensure team members only see what they need to see.
Read now: Four Tips for Keeping Your Dispersed Teams Engaged