As a result of the economic crisis, some HR managers who had previously reported directly to CEOs, started to report to CFOs. While the economic sense of such a change is clear, reporting to the cold financiers who are interested only in numbers raises concerns or even resistance in HR professionals. The cooperation between HR and finances can, however, still bring many useful things. What should, therefore, HR learn from finance?
Broader perspective of business
CFOs are always interested in what impact their decisions will have on the overall business results of their companies. They speak the language of ROI. The ability of HR to consider the broader business context, is necessary in these days.
Use of Data
Finance work with regular data, but HR still often lacks effective systems of collecting and evaluating data. Be clear about why, what and how you measure and what effect it has on your business' success.
Quality and quantity of investments
If HR does not want stay with the traditional hallmark of an administrative cost center, it must find both qualitative nad quantitative ways to get more strategic investments in people processes. The better HR learns from finances how to apply the principles of financial decision-making, the closer it will be to become a strategic function.
Involvement HR knowledge in corporate strategy
HR expertise in areas such as talent management should not remain aside when deciding on business and strategic objectives of the company. CFOs should not prevent HR from entering into negotiations at the highest level of management. HR leaders should learn from them how to present opportunities by using measurable indicators.
And on contrary, what should HR help finance with?
Strengthening the human element in decision making
CFOs often say "no" and thus keep their companies afloat during crises. The period of improving economic situation is an ideal moment for HR to bring a more humane approach to financial decision making. Both the functions should work together naturally.
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