Coffee Break Webinar: Aligning HR & Finance
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Erik Marsh will speak about aligning HR and finance. Historically, HR and finance have failed to see eye-to-eye due to differing objectives and views of each other. However, their relationship is improving as 80% of CFOs and CHROs now collaborate more frequently. To further improve their relationship, the speaker recommends removing silos, forming cross-functional teams, and sharing systems to streamline communication. When HR and finance work together towards common goals with transparency, everyone can make better decisions to increase productivity and organizational success.
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Coffee Break Webinar: Aligning HR & Finance
- 1. Coffee Break Webinar: Aligning HR & Finance
- 2. Speaker In his leadership role with DATIS, Erik's focus has been delivering value, productivity and efficiencies for organizations through Human Capital Management software. Erik graduated from Indiana University, Bloomington with a B.S. in Finance. After graduation, Erik worked for 5 years in various financial roles before joining Oracle, where he worked for 15 years. With over 20 years of experience in finance and software, Erik combines this knowledge to help organizations implement best-in-class technology that drives innovation and growth. SPEAKER
- 3. HR VS. FINANCE • The need for an efficient, collaborative workforce has never been greater. Unfortunately, HR and Finance have historically failed to see eye-to-eye. • This Rivalry: • Restricts Organizational Growth • Slows Down Internal Processes • Causes Tension within the Workplace
- 4. COMPATIBILITY ISSUES • HR: • “People are our greatest asset” • Objective: Hire, train, educate, and task workforce • More Qualitative • Views Finance as the ‘budget police’ • Finance: • “Cash is king” • Objective: Collect and calculate earnings information and budget accordingly • More Quantitative • Views HR as a cost unit
- 6. A DEVELOPING RELATIONSHIP • Recent studies show that the bond between HR and Finance is steadily improving, with the two departments teaming up more frequently. • 80% of CFOs and CHROs say their relationship has become more collaborative in the last three years. • CFOs have reported a 21% increase in time spent in HR to assist with compliance, compensation, benefits plans, and recruiting. • 78% of finance respondents consider HR a strategic partner
- 7. TRUST ISSUES • While their relationship is improving, Finance is still having trouble fully trusting HR with organizational resources. This lack of trust is likely derived from a lack of visibility into HR activities and vice versa. • 97% of finance executives still have "significant concerns" with benefits costs. • 33% of finance executives expect HR to go over budget • 34% of finance executives expect HR to mismanage ACA Reporting
- 8. ACHIEVING “HAPPILY EVER AFTER” • Like any relationship, achieving “happily ever after” takes patience and compromise. However, there are a couple steps you can take to make sparks fly within your organization: • Removing silos for overlapping objectives • Forming cross-functional teams for collaboration • Sharing systems to streamline communication
- 9. 67% of Finance and 89% of HR Professionals say that functional silos are a barrier for cross- departmental communication.
- 10. REMOVE SILOS FOR OVERLAPPING OBJECTIVES • HR and Finance are collaborating more on compliance, compensation, benefit plans, and recruiting • Functional silos restrict communication, inhibit productivity and create trust issues between departments • When departments work separately, they cant see the “big picture” to make good decisions • Less Information silos = More efficiency
- 11. Only 21% of finance and HR executives feel they are “experts” at building cross-functional teams.
- 12. FORMING CROSS FUNCTIONAL TEAMS • Identify specific objectives and form a project team of key Finance and HR personnel to complement and amplify each others strengths • Assign teams tasks to solve complex business problems, like Recruiting • “The business imperative for the link between Finance and HR comes down to making intelligent hiring decisions based on intelligent economic decisions.” - Katherine Jones, VP of HCM Technology Research at Bersin by Deloitte
- 13. 100% of Finance and 89% of HR report that they experience challenges with communication between departments ‘occasionally’ to ‘often’
- 14. SHARING SYSTEMS TO STREAMLINE COMMUNICATION • Multiple systems complicate Finance and HR communication. • Multiple systems provide incomplete information that doesn’t match up • Each department only sees a fraction of the data, and no one can make well-informed decisions • Shared systems provide a single source of truth, increase productivity, and drive collaboration • Create and analyze real-time, organization-wide reports • Your IT Department work on more strategic initiatives, instead of patching together faulty integrations “56% of HR professionals say they use 4+ systems to maintain workforce management processes across departments.”
- 15. When departments work together towards transparent, common goals, everyone makes better decisions, productivity increases, and organizations are more successful.
Hinweis der Redaktion
- HR and Finance are pitted against each other based on HR’s perceived objective to serve the people vs. finances objective to protect the money.
- There can often be many differences between the mindsets or HR professionals and Finance professionals. * talk through some bullets* While many of their daily tasks are at odds with each other, many organizations continue to neglect how interrelated these two functions are and how critical it is that they work together.
- After all, people drive the financial performance of a business and financial goals drive peoples performance, right? So, why can’t HR and Finance work together to achieve success for the organization?
- As HR and Finance are forced to team up more frequently on strategic initiatives, we have seen that their relationship is improving. <<talk through stats>>
- However, there are still some trust issues between the two departments… in viewing the stats outlined here we can attribute these trust issues mainly to a lack of insight into each others systems and processes. Finance worries about HR’s spending, but only because they are not collaborating to create a position-based budget structure that aligns with the organizations overall budget- On the other hand, HR doesn’t understand Finance’s point of view because they cannot see the whole financial picture.
- While some issues exist, it is possible for these two departments to get along. In order to achieve true collaboration between these departments- organizations need to work to remove silos for overlapping objectives (like budgeting for positions’ salaries), forming cross functional teams for strategic initiatives (like organizational planning), and sharing systems to communicate and provide each other with insight into the others activities and data that can help them better understand the big picture
- Removing information silos within your organization should be the first step to improving the relationship between HR and Finance. Our 2017 Workforce Management survey revealed two thirds of HR professionals and 9 out of 10 Finance professionals claim that information silos have been a barrier for cross-departmental communication within their organization.
- Information Silos occur when information systems are unable to freely communicate with one another. Implementing a unified, shared system between departments can increase visibility and really streamline the communication process between the two departments. An organization free of information silos is more efficient and can reach objectives more effectively through cross-departmental collaboration.
- Creating cross-functional teams that include Finance and HR professionals is also a great way to bring the two departments together. Unfortunately, studies show that the majority of HR and Finance executives lack the confidence when creating these teams, with only 21% claiming to be experts at building cross-functional teams.
- Forming cross-functional teams can solve complex business problems by taking subject matter experts in various areas and putting them in teams where they amplify and complement each others strengths. To get the ball rolling, start with recruiting. Recruiting was listed as the top overall priority in our 2017 Workforce Trends survey of Health and Human Services Executves. Katherine Jones, VP of HCM Technology Research at Bersin by Deloitte at Deloitte, states that, “the business imperative for the link between Finance and HR comes down to making intelligent hiring decisions based on intelligent economic decisions.” This initiative, along with others like it, can bring to light numerous advantages of a better relationship between HR and Finance, leading to a sustainable structure of cohesiveness.
- Lastly, sharing and unifying systems between HR and Finance dramatically simplify the communication process. This statistic was a key finding in our Workforce Management survey and really highlighted the need for a discussion on this Webinar’s topic.
- Having too many systems is not only complex and frustrating to manage, but it can also lead to important information getting lost or mismanaged. Our survey uncovered that over half of HR professionals admit that their organization currently uses over four unique systems to maintain processes across departments. This is far too many. To simplify and streamline communication between departments, your organization must implement a single source of truth for information and analytics across all departments. This will also take a lot of the pressure off of your IT department that works endlessly to keep your systems running smoothly.
- If you can take one thing away from this presentation, make it this. When departments work together towards transparent, common goals, everyone makes better decisions, productivity increases, and organizations are more successful. With the distractions of cross-departmental chaos eliminated, teams can focus on mission-driven activities and develop new strategies to serve more clients, better.