HR and Finance: A Vital Relationship
There is nothing funnier than watching my financial friends search high and low for the last few cents to ensure their books balance to the penny. Get me in the ball park and I am more than happy to call it a day. I laugh, but I do so with the utmost respect.
My route to Human Resources (HR) was not typical. I came to HR with a biology degree and 10 years military service as an Army Officer. I did not have any monthly financial reports to read, salary budgets to set or benefit costs to calculate. I could plan the logistical support for a military convoy moving across Germany but did not have experience valuing or presenting human resource program proposals.
Many of my skills from the military transferred easily to the private sector. Terminology, culture, and ways of doing business did not. I was a one-person Human Resource department learning business jargon, making sense out of a new culture and building upon the credibility I brought by learning absolutely everything I could about how a for-profit business operated.
I quickly realized that I needed to understand how the other half lived. I knew what a 3% salary increase would cost and the Chief Financial Officer (CFO) identified where the money would come from. I knew how to design a competitive benefits package and the CFO knew the ins and outs of the local benefits business. I knew what needed to be done and the CFO was a sounding board, ally, and resource in helping me to get things done.
I reported to the CFO and to say I learned a lot from him, simply would not capture the value of the relationship. I am very fortunate to continue to have positive relationships with the financial leaders I work with.
Human Resources and Finance are two very different departments; each brings a unique, yet equally valuable, view of the organization. Unfortunately, collaboration between Human Resources and Finance is not the norm. In many cases, the working relationship between Human Resources and Finance is neutral at best and that is unfortunate for Human Resources, Finance and the entire organization.
The relationship between Human Resources and Finance is a vital business relationship and one well worth the effort.
January 28, 2009
Reader Comments (8)
http//throwintotraining.wordpress.com
The disconnect between HR and Finance often happens when Finance feels HR doesn't speak the "language of business." Ultimately, it is all about the business, and this book does a great job of making finance concepts both accessible and interesting (it is loaded with many recent scandals, how they were pulled off, and how it is relevant to HR.) A little investment of time with this book could save a lot of frustration for many HR professionals.
We supply HR solutions through our sister company and we deal with many HR departments throughout the country (Ireland). We are offering a better online erecruitment system than currently in place in many companies. Not us that is saying this but users of the system who change over. Some HR departments won't even look at the system and it costs 50% less than their current (less fiunctional) system.
Sometimes the Finance departments don't realise that savings can be made but some HR managers are just not bothered, it's not their money.
There is a blog you may be interested in, "How Talent Analytics Can Explain CFO vs Human Capital Misunderstandings" here: http://www.talentanalytics.com/blog/what-do-talent-analytics-show-about-cfo-vs-human-capital-misunderstandings/